SavingsTalk.com

007 · 10-31-2007, 02:25 PM

I work for the state and I have a retirement plan already with my job but they don't call it 401K, they call it "A retirment plan" and they match me at 5 years. I wanted to the difference between 401k, Roth IRA, Reg. IRA and are there anymore other retirments plan out there that I can choose from? I was also thinking of opening a saving account and using that for retirement account, I will not touch until I'm 65 but I wanted to know do they charge on taxes awhen I take out and will I make money on the interest as more or less than with a 401K, ROTH IRA OR REGULAR IRA. If it's not good to get a savings account to use for retirement what the advanges of getting a savings account?<br />

save123 · 10-31-2007, 02:25 PM

You know what? Really, talk to a professional financial advisor. and then talk to a few more, because each one will tell you that whatever they are selling is the best. Most should talk to you at least once for free. Don't bother if they want to charge you for the first meeting. If they pressure you to commit to buy something in the first meeting, walk and never talk to them again.

Minsk · 10-31-2007, 02:25 PM

Download a copy of my free eBook and go straight to chapter 24 where I talk about the different retirement accounts. That will give you a basic primer on them. Even if you need to learn more, you didn't pay anything to read my book. Click on my profile and read the info to get the website.

401(k), 403(b), 457(b) accounts are examples of employer-sponsored retirement accounts. You can contribute up to $15,500 in 2007. They are contributed with before-tax money, meaning you get a tax benefit this current year. However, you must then pay taxes on contributions and earnings when you withdraw any money from them in retirement.

An IRA is an individual retirement account. This is independent from your employer, one that you set up yourself. You can contribute up to $4000 in 2007. You can have an IRA in addition to your employer's plan. There are two basic types: A traditional IRA and a Roth IRA. Generally, the Roth is the better choice for most. With a Roth IRA, your contributions are after-tax, so you do not get an immediate tax benefit. However, if you meet the requirements, the contributions and earnings are withdrawn tax-free in retirement with a Roth IRA. In the long-run, you make more money with a Roth account because the earnings are never taxed.

As a last resort, once you have maxed out your employer plan and an IRA, some people then contribute to a Variable Annuity. However, most variable annuities are junk because of their high costs. Read chapter 24 of my book to learn a little more about them.

If you are young, a savings account is not appropriate for retirement investing. Use mutual funds that invest in stocks and bonds, please.

gooner · 10-31-2007, 02:25 PM

go to your local public library and take out a book. from the sound of your question you could learn alot.

invest01 · 10-31-2007, 02:25 PM

As you are a state gov employee, your retirement plan is 403/457.

401k, Roth IRA, Regular IRA, 403/457 are nothing but savings account planned for retirement. So typically you do not need separate savings account for retirement!

Now you wanted the differences between all these. Check following links here which gives simple understandable comparison:

401k vs Roth IRA - http://www.theusefulinfo.com/finance/compare4R.html

Regular IRA vs Roth IRA-
http://www.theusefulinfo.com/finance/compareTR.html

This should give you good idea.

Also check this link:
http://www.theusefulinfo.com/finance/2007/04/what-is-conventional-wisdom-about.html

I hope this helps!

10-31-2007, 02:25 PM	#1
007 Greenhorn Join Date: Jul 2006 Posts: 16 Rep Power: 0	Questions about 401k, Roth IRA, Regular IRA,and savings accout? I work for the state and I have a retirement plan already with my job but they don't call it 401K, they call it "A retirment plan" and they match me at 5 years. I wanted to the difference between 401k, Roth IRA, Reg. IRA and are there anymore other retirments plan out there that I can choose from? I was also thinking of opening a saving account and using that for retirement account, I will not touch until I'm 65 but I wanted to know do they charge on taxes awhen I take out and will I make money on the interest as more or less than with a 401K, ROTH IRA OR REGULAR IRA. If it's not good to get a savings account to use for retirement what the advanges of getting a savings account?<br />

10-31-2007, 02:25 PM	#2
save123 Greenhorn Join Date: Jul 2006 Posts: 20 Rep Power: 6	Questions about 401k, Roth IRA, Regular IRA,and savings accout? You know what? Really, talk to a professional financial advisor. and then talk to a few more, because each one will tell you that whatever they are selling is the best. Most should talk to you at least once for free. Don't bother if they want to charge you for the first meeting. If they pressure you to commit to buy something in the first meeting, walk and never talk to them again.

10-31-2007, 02:25 PM	#3
Minsk Greenhorn Join Date: Jul 2006 Posts: 16 Rep Power: 0	Questions about 401k, Roth IRA, Regular IRA,and savings accout? Download a copy of my free eBook and go straight to chapter 24 where I talk about the different retirement accounts. That will give you a basic primer on them. Even if you need to learn more, you didn't pay anything to read my book. Click on my profile and read the info to get the website. 401(k), 403(b), 457(b) accounts are examples of employer-sponsored retirement accounts. You can contribute up to $15,500 in 2007. They are contributed with before-tax money, meaning you get a tax benefit this current year. However, you must then pay taxes on contributions and earnings when you withdraw any money from them in retirement. An IRA is an individual retirement account. This is independent from your employer, one that you set up yourself. You can contribute up to $4000 in 2007. You can have an IRA in addition to your employer's plan. There are two basic types: A traditional IRA and a Roth IRA. Generally, the Roth is the better choice for most. With a Roth IRA, your contributions are after-tax, so you do not get an immediate tax benefit. However, if you meet the requirements, the contributions and earnings are withdrawn tax-free in retirement with a Roth IRA. In the long-run, you make more money with a Roth account because the earnings are never taxed. As a last resort, once you have maxed out your employer plan and an IRA, some people then contribute to a Variable Annuity. However, most variable annuities are junk because of their high costs. Read chapter 24 of my book to learn a little more about them. If you are young, a savings account is not appropriate for retirement investing. Use mutual funds that invest in stocks and bonds, please.

10-31-2007, 02:25 PM	#4
gooner Piggy Bank Join Date: Jul 2006 Posts: 75 Rep Power: 6	Questions about 401k, Roth IRA, Regular IRA,and savings accout? go to your local public library and take out a book. from the sound of your question you could learn alot.

10-31-2007, 02:25 PM	#5
invest01 Greenhorn Join Date: Jul 2006 Posts: 35 Rep Power: 6	Questions about 401k, Roth IRA, Regular IRA,and savings accout? As you are a state gov employee, your retirement plan is 403/457. 401k, Roth IRA, Regular IRA, 403/457 are nothing but savings account planned for retirement. So typically you do not need separate savings account for retirement! Now you wanted the differences between all these. Check following links here which gives simple understandable comparison: 401k vs Roth IRA - http://www.theusefulinfo.com/finance/compare4R.html Regular IRA vs Roth IRA- http://www.theusefulinfo.com/finance/compareTR.html This should give you good idea. Also check this link: http://www.theusefulinfo.com/finance/2007/04/what-is-conventional-wisdom-about.html I hope this helps!

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