Where Should I Start Saving? My 401(k) or an IRA or a Roth IRA?
Where Should I Start Saving? My 401(k) or an IRA or a Roth IRA?
You’re able to save more in your 401(k) ($24,500 in 2026 plus an additional $8,000 if you are 50-59 or over 64; $11,250 if you are 60-63) each year than you can in your IRA or Roth IRA ($7,500 plus an additional $1,100 if you are over 50). If your employer offers a match to your contributions, you should at least contribute as much to get that full match. Effective January 1, 2026, if you’re earning more than $150,000 that year, all catch-up contributions will have to go into the Roth portion of your 401(k). Overall, you’ll be happiest financially if you contribute as much as you can to your retirement accounts--the part you can deduct from your taxable income turns out to be free money, and those balances really compound over time!
Related Articles
An easy way to tell is by looking at your statement. If it states “Surrender Value,” “Surrender Charge,” “Premiums,” “Guaranteed Income,” or “Guaranteed Rate”. Hilary Hendershott does not sell annuities...
Kids learn so much from the actions of those around them. When you are open with your kids about not only what you’re doing well, but also where you would like to improve, kids learn. We encourage you to...
If your goal is to grow your assets, it would likely be best to reinvest the dividends and capital gains. It’s a great way to increase your position in the investment without paying commissions. Those shares will...
An index fund is a mutual fund. The underlying investments are built/purchased/structured to match a market index. These types of mutual funds are designed to have fewer trades which equates to less...
To be invested in a range or a variety of companies, industries, countries, and types of investments. To not put all of your eggs in one basket so to speak. The most basic recommendation for diversification...
Risk is the possibility of a loss. There are quite a few types of risk when it comes to investing. The level of risk you are willing and able to take is different from the next person. However when it comes to...
If more than 10% of your assets for a specific goal, like retirement, are in one stock or company, that would be considered having a concentrated position. Having concentration positions in your account...
If more than 10% of your assets for a specific goal, like retirement, are in one stock or company, that would be considered having a concentrated position. Having concentration positions in your account...
Hedge Funds, like mutual funds, are pools of investments. They can invest in anything, private corporations, public corporations, real estate, currencies, the list goes on. Only Accredited Investors...
A mutual fund is an investment vehicle where you and others pool your money to purchase other investments, like stocks, bonds, and even other mutual funds. Mutual funds can have 20 to a few...