401 K and IRA's

Yup.

And put the maximum in both.....

start now.


Joe

Check this out:


http://www.fool.com/60second/ira.htm

Oh, BTW, welcome to A2K!

Your best bet for an IRA in addition to a 401(k) account is a Roth IRA. This is after tax contribution, and the annual limit is in addition to the limit which governs 401(k) group annuity contracts and traditional IRA's. You are obliged to pay taxes on your Roth earnings, as well as contributing after taxes. However, when at least five years have elapsed, and you will have reached the age of 59 1/2, your Roth funds are available tax free. Check it out, it is a way of expanding your annual contribution limit.

If at all possible, contribute to your 401k so as to get as much of your employer's matching contribution as you can. If afterwards you still have money to invest, you have to weigh a few options to decide whether to continue to put it in the 401k or into your IRA. The biggest thing to consider is what investment options are available in your 401k? If its only company stock, then I'd put the excess into the IRA. But if the 401k has a family of mutual funds you can put money into, that's a lot better.