Tilted Forum Project Discussion Community - View Single Post - 401k plan available at work.. Should I take advantage of it, and other questions...

Jimellow · 04-13-2005, 09:53 AM

Thanks for the reply.

I was talking with my dad, and it seems at the point I am in my life, a 401k may not be the best idea for me..

Instead, I am going to look into starting a Roth IRA, where you pay the taxes up front, and then throw money into that when I have a few extra bucks.

The 401k offered sounds nice, but honestly, when compared to a IRA (namely, a Roth IRA), I like the freedom it provides, both in funds available as well as not being tied to a single employer based on a 401k plan.

From what I understand, Roth IRA's are pre-tax, and thus nice for when I retire and won't necessarily have a steady income coming to me, and would "value" the tax-free money more.

I consider my current job to be a possible career, but nothing is set in stone yet, as I am not even done college yet.

I really would like to start up a Roth IRA though, so that I can have it there to contribute money to when I have a few extra bucks, and I think I will opt to work towards that instead of a company 401k plan at this point.

Thanks for the reply and information. After talking with my dad it seems that a Roth IRA sesms like a better idea given my situation, primarily because the pretax seems to help reduce the taxes paid later, when the money is withdrawn.

I'm really excited to invest a little money into a long term retirement-like plan, I just don't have lots of extra spending money at this point in my life, but I'd still like to start up a Roth IRA as soon as I can, just so it's there for me when I do have a few bucks.

I think I've repeated that line about three times so far, and that is an indicator that I am rambling.

Thanks again for the reply and information.

04-13-2005, 09:53 AM	#3 (permalink)
Jimellow Junkie	Thanks for the reply. I was talking with my dad, and it seems at the point I am in my life, a 401k may not be the best idea for me.. Instead, I am going to look into starting a Roth IRA, where you pay the taxes up front, and then throw money into that when I have a few extra bucks. The 401k offered sounds nice, but honestly, when compared to a IRA (namely, a Roth IRA), I like the freedom it provides, both in funds available as well as not being tied to a single employer based on a 401k plan. From what I understand, Roth IRA's are pre-tax, and thus nice for when I retire and won't necessarily have a steady income coming to me, and would "value" the tax-free money more. I consider my current job to be a possible career, but nothing is set in stone yet, as I am not even done college yet. I really would like to start up a Roth IRA though, so that I can have it there to contribute money to when I have a few extra bucks, and I think I will opt to work towards that instead of a company 401k plan at this point. Thanks for the reply and information. After talking with my dad it seems that a Roth IRA sesms like a better idea given my situation, primarily because the pretax seems to help reduce the taxes paid later, when the money is withdrawn. I'm really excited to invest a little money into a long term retirement-like plan, I just don't have lots of extra spending money at this point in my life, but I'd still like to start up a Roth IRA as soon as I can, just so it's there for me when I do have a few bucks. I think I've repeated that line about three times so far, and that is an indicator that I am rambling. Thanks again for the reply and information. __________________ Desperation is no excuse for lowering one's standards.