Should I increase my 401k contribution from 7% to 15% or should I keep my contributuon at 7% and open a..?

Question

Roth IRA and invest $50 a month through T.RowePrice?

Answer 1

I'd say an IRA--I would only contribute up to the MAX employer match...I do 6% because that's what they match.  I have a MM acct that gets decent interest-there are many options out there--depending on your income a Roth might be the way to go.  My accountant advised me to open a Roth a month or so ago when I was looking into it.  With him knowing the in's and outs of my finances --he said at tax time that would be the best option for me

Answer 2

Maximize your contributions to your 401k first.  Then start an IRA.

Answer 3

I'm not a huge fan of the ROTH...especially since flat taxer's are gaining momentum.  Remember, a flat tax means the ROTH loses it's benefit and the 401k gains...

But that being said, the diversity of income stream at retirement provides you added flexibility.   It's no different then having diversity in investments....so, I'd recommend opening the ROTH and putting in $$ there.  BUT, no more than what  you are putting in your 401k.  Personally I'd say no more than 40% but then again that's because I don't trust the lawmakers and I don't believe that tax rates are going to jump like others think they will.  More likely that capital gains taxes will go up and down and other taxes get instituted than actual tax rate increases.

Answer 4

Go with the ROTH ( answered your question in another form ..)  ... and I'm saying as far as the ROTH : " give 'til it almost hurts" to get a nice bit in there to get that particular ball rolling for you...it is the best plan the gov has ever come up with for YOUR retirement... so fair, and so potentially lucrative... ( ...and hopefully they won't change the rules when Social Security ( their horse caca plan) fails.)