IRA vs. 401K

L

Lasza

Premium Lurker
Premium Member
Joined
Apr 5, 2003
Messages
2,509
Reaction score
1
Anyone know the difference between two?

I do have a 401K under my work. There are many pro/con between two.

Say it right away.
 
I don't know about IRA that well. I have 401k, I don't complain anyway.
 
I am not so sure if you quit or get fired from your job, then it might lose your 401K. I could be wrong - it depends on the company's policy. I think that IRA is a good one.
 
My husband said it is good to have both...never know in the future. We were supposed to start an IRA..

I dont know enough about IRA to discuss the pros and cons...
 
All my 401k investment is gone. :(

I want to start an IRA as soon as my employment becomes stable.

I work for a business that doesn't offer any kind of retirement plan, so I have to get my own.

Retirement planning is very discouraging to me.
 
Reba said:
All my 401k investment is gone. :(

I want to start an IRA as soon as my employment becomes stable.

I work for a business that doesn't offer any kind of retirement plan, so I have to get my own.

Retirement planning is very discouraging to me.
Click to expand...

I am sorry about your 401K plans.

My friend's husband works for a company that doesnt offer any retirement plan and she is a housewife. I told her to pls start an IRA but her husband said IRAs are a rip off. :confused: Any truth to that?
 
webexplorer said:
I am not so sure if you quit or get fired from your job, then it might lose your 401K. I could be wrong - it depends on the company's policy. I think that IRA is a good one.
Click to expand...

401k can roll over into IRA if you layoff, quit or fired job. One thing is have to wait next quarter make effect markets. Or different new job then can rollover to 401k with new job.
 
shel90 said:
I am sorry about your 401K plans.

My friend's husband works for a company that doesnt offer any retirement plan and she is a housewife. I told her to pls start an IRA but her husband said IRAs are a rip off. :confused: Any truth to that?
Click to expand...

depend on.....there is 50/50.....some are good or bad.......there is variable with IRA policy from banks. Sometime is wierdo.
 
webexplorer said:
I am not so sure if you quit or get fired from your job, then it might lose your 401K. I could be wrong - it depends on the company's policy. I think that IRA is a good one.
Click to expand...

I quit my old job and I manage to get this account rollover in other service to keep up.
 
Banjo said:
What happened? (If you don't mine me asking)
Click to expand...
I'm still investigating.

The company managing my fund is still in business. It's just my account that is zeroed out.
 
TFWFalcon said:
depend on.....there is 50/50.....some are good or bad.......there is variable with IRA policy from banks. Sometime is wierdo.
Click to expand...

Ok thanks..just I think it is a bad idea that my friend and her husband have no retirement plans. They said they will get Social Security but I dont think it is a good idea to rely on it only especially now with the danger of it being depleted.
 
I don't know much about IRA or 401K plan. I have state pension plan and plan to add deferred retirement plan from the state after this july when I get raise.
 
webexplorer said:
I am not so sure if you quit or get fired from your job, then it might lose your 401K. I could be wrong - it depends on the company's policy. I think that IRA is a good one.
Click to expand...

If you quit or get fired from your job, the 401k is still yours to keep minus the taxes and 10% penalty if I recall from my 401k's rules.

Once you get the 401k $ you have to roll it over to another 401k or an IRA in order not to pay any taxes or penalties within 6 months or so.
 
I have both 401k and IRA. I afford to contribute the max (100 percents match) to my 401k's. Figure out the "MAX" you can afford to put in there. Then raise that max up every year when you get a raise. Whatever I have money left, I put it into IRA as same apply as 401k.
 
I fear of having a 401K no matter what you think of it because people lost their 401K for many years. I have a friend who had it and lost it. I didn't ask her how does that happened. I have heard about it from some people in the past. You know the mortgage interests ruin their financial and their bank has no feeling for them. Nothing is free anywhere. You wouldn't want to make a big fool yourself by putting too much in 401K. You might want to consider to be safe by keeping in the right balance between them like 50/50 in your 401K and saving bank. Hypothetical, you wouldn't expect to be rich someday.
 
webexplorer said:
I fear of having a 401K no matter what you think of it because people lost their 401K for many years. I have a friend who had it and lost it. I didn't ask her how does that happened. I have heard about it from some people in the past. You know the mortgage interests ruin their financial and their bank has no feeling for them. Nothing is free anywhere. You wouldn't want to make a big fool yourself by putting too much in 401K. You might want to consider to be safe by keeping in the right balance between them like 50/50 in your 401K and saving bank. Hypothetical, you wouldn't expect to be rich someday.
Click to expand...
Yeah, my 401k money disappeared. The money I invested is gone. My account shows a zero balance, and there's nothing I can do about it. :(
 
webexplorer said:
I fear of having a 401K no matter what you think of it because people lost their 401K for many years. I have a friend who had it and lost it. I didn't ask her how does that happened. I have heard about it from some people in the past. You know the mortgage interests ruin their financial and their bank has no feeling for them. Nothing is free anywhere. You wouldn't want to make a big fool yourself by putting too much in 401K. You might want to consider to be safe by keeping in the right balance between them like 50/50 in your 401K and saving bank. Hypothetical, you wouldn't expect to be rich someday.
Click to expand...
I have heard those stories but no proof. My grandfather, aunt, and two uncles retired from their jobs for 20+ years and they had collected a lot of money from stocks, 401k and IRA. They taught me everything. So I am investing IRA, 401k, stocks options, and some private things. My job is to check my things every two weeks, do not depend on the companies, bankers, and stockbrokers for watching, and guarding your investments.
 
Back
Top