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Old 02-09-2006, 12:11 PM
sweeps sweeps is offline
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Default Re: IRA & long-term savings vs. Paying all CC debt?

Quote:
Originally Posted by emnah94
After deducting my expenses, including $500 toward my emergency fund, I have about $1700 free income to distribute...

Quote:
Originally Posted by emnah94
I'd always heard to only contribute to your 401k up to what is matched my your employer...in my case, I am not matched. Is it best to still increase my contribution or put it in an IRA?
If you have $1700/month to spend, then sure, open a Roth. You'll hit the max in no time. Then bump up your 401(k) contribution to what you can afford.

Just to clarify, I'm not at all anti-Roth. I just cringe when I hear the advice that Roth's always beat 401(k)'s. Contributing to a 401(k) is better in some situations -- even without a match.
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