Rojana

My Daily Diary (kind of...)

Friday, October 06, 2006

Where to Invest 401 K?

This is kind of issue comes in front of everybody start joining job. I am going to join a job. SO just was looking around for information about this that WHat the hack is this?

Looked around some blogs etc.

1. Max your employer match in your 401(k)
2. Max your Roth IRA
3. Remaining funds put in your 401(k)


http://www.investorgeeks.com/articles/2006/01/19/intro-to-401k-part-1/

http://www.investorgeeks.com/articles/2006/01/26/intro-to-401k-part-2/

http://www.investorgeeks.com/articles/2006/03/02/401k-redux/

Why 401(k)?

  1. Taxes: you don’t have to pay federal income taxes on contributions made to your 401(k). Taxes are only paid when you finaly begin withdrawing money, after that money has been compounding for you. The Wikipedia article on 401k is a great read that covers the tax benifits particularly well.
  2. Employer Match: If you have a decent employer, they will match some part of your contribution. Can you say “Free Money”? We’ll cover some examples of employer matching below.

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