Today we are talking about our investment plan for 2020. Initially we will go over some options that are readily available. Then we dive into the details of how our investments will be divided up.
We have the 401k and the IRA.
The 401k is an account that employers can offer as a benefit to their employees to help with retirement savings. The 401k has tax advantages which we talk about in the video. Since this account is a package deal from an investment company, it has limited options when it comes to investing in different funds. Fortunately, the employer match makes investing in this fund profitable and attractive.
IRA, is a separate account that, like the 401k, has tax advantages associated with using it. You won't typically have the option of an employer match in this account, but the options to invest are significantly greater. Essentially, any stock or fund available can be arranged.
In the video we also talk about Roth vs Traditional versions of both these accounts. These are the names that classify the different tax advantages an account can have.
You'll have to watch the video to know exactly how we are allocating the funds to these accounts and get a taste of how our personal finances will be changing in the near future.
Music by: @dcuttermusic
www.davidcuttermusic.com
No Words (Mosquito Beat) - David Cutter Music
0 Comments