Typically,
yes. It’s always worth investing in one’s self.
401K vehicles
are controlled by the employer, who matches the investment typically 1:1 for
the first 3% and then 1:2 for the next 2%. This is like getting paid an extra
4% on top of the investment accounts own earnings. In total, this will lock 5%
of one’s income until ~60 years of age, unless one is willing to accept the
unavoidable early withdrawal penalties to access those funds sooner. While
401Ks may have 20-30 different options, there are 20,000+ options when it comes
to IRAs.
IRA
vehicles are an individual retirement accounts with the most common being a Roth
IRA which allows the payment of taxes now, for future tax free growth. A traditional
IRAs will defer these taxes for later and is the most used type of IRA by our
students due to the ability to avoid most of these taxes.