Hi Monkeys,
Curious to get everyone's thought on this. My company does not offer a 401K match, so I'm trying to figure out what's the best bet in terms of savings.
My thought is to contribute after-tax to a Roth IRA, as the fund I get through that has a much lower expense ratio than if I were to go through my company's 401K.
Is this the right way to think through this or should I still contribute to a 401K regardless of whether my company matches? Thanks!
Well, contributing to your 401K reduces your pretax income, meaning you get a lower hit on your tax bill at the end of the year. I would definitely contribute to it for that reason alone. If you make enough money, honestly, you should contribute to both your 401K and a Roth IRA. There's nothing wrong with saving as much as you can for it through these two vehicles.
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