is 401k really necessary?
My job does not offer that. Should I worry?
- AmyLv 71 month ago
It's not NECESSARY, but it's a good thing to have.
The main benefit of a 401(k) isn't offered by all companies, even if they do have a 401(k) plan. That is the fact that your employer can match your contributions by adding free money into your account.
Without a 401(k), you can still open an individual retirement account (IRA).
You can only contribute $6000 per year to an IRA, vs $19500 to a 401(k). If you're just starting out and can't afford to save more than that, it doesn't matter which type of account you have. But $6000 per year over your entire working life is not enough to set you up for a comfortable retirement. When your income improves, if you still don't have a 401(k) you'll have to put the rest of your savings in a taxable account and lose possibly quite a lot to taxes.
- ErikLv 71 month ago
No, it's not necessary at all. It's a good idea because you don't get taxed on the money you save. But you can walk into any bank and get an IRA.
- Raymond L.Lv 51 month ago
i would put money into a ROTH IRA and a Traditional IRA
- JudyLv 71 month ago
No, you can still save for retirement in an IRA. If you aren't saving though, yes then worry.
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- StephenWeinsteinLv 71 month ago
No. You can save for retirement another way.
- D.E.B.S.Lv 71 month ago
It's all part of your total compensation package. Not being offered one isn't good or bad if the rest of the package is good and to your standards. If there isn't one, then you should be looking a IRA instead. Do not ignore retirement no matter how young you are.
- EvaLv 71 month ago
If your job does not offer a retirement plan, you should be saving on your own. The money you save early in life is the most important as it has the most time to grow. Waiting until you're in your 40s to save for retirement will mean that you'll have to save much more each week. Social security is not enough to provide a decent standard of living for most. If you want to enjoy your retirement, start saving now.
- A HunchLv 71 month ago
You are allowed to save money on your own.
If you want retirement benefits, you are able to put some funds into a IRA (traditional or roth).
- fcas80Lv 71 month ago
It's a nice benefit, and it's even better when an employer contributes to it. Hopefully you are saving anyway.