Is it advisable to have both an IRA and a 401k?

Question

If so, how "do-able" is it?

Answer 1

The first question to ask is does my company match my contributions to my 401K?  Most companies do match a percentage for instance 5% - 10% of pay.  If they match it's a no-brainer to join the 401K program since it's FREE Money or your retirement incentive to save. Just make sure that your company has many investment choices not just company stock. If the investment choices are limited you may want to talk to human resources to add more funds.  

In general just join the 401K program up to the the maximum match - any left over savings put in your Roth and general IRA for maximum returns and tax savings! It's always advisable to spread your money out - you may have to roll over your 401K into an IRA later if you quit or laid off your job anyway so pick your Investment brokerage account now and research the field!  Good luck!

Answer 2

It is not necessarily a bad idea.  A 401K will give you the highest returns, but your Roth IRA can serve as an emergency reserve since you only have to pay taxes on the earnings, not the principle.  It is basically a bank account that can earn 10%.