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In response to
"401s are like some magical wonderland where there never seems to be a good reason to withdraw your investment no matter what the market conditions."
by
Loyola
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the idea is - earn money - agree to put said money away for retirement and don't get taxed on it now - but later when you are in a lower tax bracket -
Posted by
JenBro
Nov 13 '08, 10:15
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at retirement age. And there's a bunch of ways to put that money aside - the bonus of a 401K is getting your employer to "match" your money - but you can also put aside money into traditional IRA's - and if you want to - you can even do a Roth IRA where you put in money you paid tax on - but when you take it out at retirement - there is NO tax - AND with the Roth you can have access to it before retirement even without any tax penalties too. Get an advisor to find out what's best for you - it's not rocket science - but it's also not a conspiracy. By the way - did you know that IRA actually stands for Individual Retirement Agreement? :D
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