Should I max out my 401k?
08/11/2010 0 comments
Scott L. Webb writing for the Zanesville TimesRecorder looks at what can be done with money for your retirement. After looking at 401K plans, he moves on to cover Roth IRAs and municipal bonds.
Scott compares the benefits of having investments pre-tax -- i.e. you don't pay tax now but will pay later, versus paying the tax now and not later -- and discusses liquidity -- can I get my money out sooner.
MyPlanIQ's view is that the most important item is making sure that you get the best returns possible for when you need the money.
1. Whatever you do, make sure that you have a good portfolio of funds and a tactical asset allocation to maximize returns.
2. Rollover old 401K's to an ETF based portfolio -- with a tactical asset allocation strategy, you have a high liklihood of beating the returns you are now seeing
3. Keep it simple -- unless you want to spend the time managing all the different accounts, you will end up not getting the best returns due to neglect.
Tags: retirement, 401K, IRA, Roth IRA
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