Roth vs 401k: Can someone explain?

Question

My company does not match 401k contributions. What is the best recommended step here? I have heard that having a ROTH ira is very valuable in the long term. Was wondering what the wide belief is or if someone can provide more information on that.

qwertyCoder · Accepted Answer

Note the Roth IRA is how Peter Thiel made billions off Facebook tax-free: https://www.propublica.org/article/lord-of-the-roths-how-tech-mogul-peter-thiel-turned-a-retirement-account-for-the-middle-class-into-a-5-billion-dollar-tax-free-piggy-bank

I highly suggest maximizing Roth.

AlwaysRock · Answer

Roth is taxed now, 401K is taxed when you take money out.

There are a lot of other differences but that is the big one. Most people use both but if your company 401K doesnt match I'd focus on maxing a personal Roth.

coffeepls · Answer

https://www.youtube.com/watch?v=z-53ZTJmDUA Graham Stephen has a dope video on this!

19g615kvh6ov9g · Answer

There are Roth 401ks and Roth IRAs, Roth is just an indicator of when the money will be taxed.

Roth vs 401k: Can someone explain?

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