401k Plan, IRA Tips from Suze Orman: Is 401k an IRA?
The best 4o1k plan tips straight from Suze Orman. Many people don’t know what to do to have their retirement savings account or what to do with their 401k, let’s find out the advice of Suze Orman today. I’ve got her advice from her famous book “The Money Book for the Young, Fabulous and Broke”. I hope this tips from financial expert will answer your curiosity about 401k. I know this tips will be worthwhile sharing to the readers of InvestmentTotal.com
What is a 401k plan?
It is defined-contribution retirement plan that allows participants to contribute pretax dollars to various investments. If your employer provides a 401 (k) plan, you’d well to participate – remember, your contributions are tax-deferred (except for Social Security taxes).*
Is 401k an IRA
A 401k plan is a retirement savings account offered by employers. You invest in your 401(k) through automatic pretax withdrawals from your paycheck. You get a nice tax break on your contributions, and your money grows for year tax-deferred. **
Who is Suze Orman?
She is the author of 4 consecutive New York Times best-sellers; “The 9 Steps to Financial Freedom”, “The Courage to Be Rich”, “The Road to Wealth” and “The Laws of Money, The Lessons of Life” (Emmy Award 2003), The same year she was inducted into the Books for Better Life Award’s Hall of Fame.
The national best sellers “You’ve Earned It, Don’t Lose It” and her “Financial Guidebook”. I know you are familiar with this gorgeous woman from South Florida and the author behind the book “The Money for the Young Fabulous & Broke”. Suze Orman is a contributing to The Oprah Magazine – O. She worked as an account executive at Merrill lynch from 1980 to 1983. **
401k Plan Advice from Suze Orman
Always contribute to a 401(k) so you can get the maximum company match; but if you have limited income, you might then switch to paying off your credit card debt, saving for a down payment on a home, or funding a Roth IRA for the rest of the year. A Roth offers a better tax deal than a 401(k) when you get around to making withdrawals. – Suze Orman
Source and References:
** Suze Orman, “The Money Book for the Young, Fabulous & Broke” (Riverhead Books, New York 2005) “p 371
*Debby Fowles, “The 250 Personal Finance Questions for Your 20s & 30s” (Adams Media, Massachusetts USA) p. 28
Let us ask Robert T. Kiyosaki about the use of 401k plan: is a worst or good retirement plan? Now you have the ideas how 401k plan works, it is up to you if you will follow the advice of Suze Orman or not, anyway, a personal finance is always a “personal”.