The question comes up pretty often, and I’ve dealt with it in general with my recommended “Order of Contributions”, that we discussed briefly during last month’s newsletter. The order is as follows:
1. Contribute enough to your employer-provided retirement plan to get the company matching funds.
2. Maximize your contribution to a Roth IRA.
3. Continue increasing your contribution to your employer-provided plan up to the annual maximum.
Beyond those three items, you may want to consider college savings accounts, tax-efficient mutual funds in a taxable account, or a low-cost annuity, among other choices.
But the question I was referring …Read More