Same 401K and Roth IRA? | TigerDroppings.com

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TriadLegend
LSU Fan
Baton Rouge
Member since Jul 2013
4 posts

Same 401K and Roth IRA?



I'm not great or knowledgeable about investing at all reading this board is definitely helping. MY question is this and forgive me if it's dumb. I'm 27 just made a year at my current job. I'm looking to invest in their 401K and start up a Roth IRA. Was thinking Vanguard target for IRA then I saw that was the default for my companies 401K though they offer other plans. Should I use a target for both? Star for IRA and target for 401K or 2 plans from separate companies. Definitely will research this more before i make a decision just looking for a little input and guidance from people who are more knowledgeable.






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Croacka
UNLV Fan
Denham Springs
Member since Dec 2008
51766 posts
 Online 

re: Same 401K and Roth IRA?


if you'd prefer to just set it and forget it, the target funds should be ok for you

i have my IRA in a target fund, but my current company's 401k doesnt include the target funds, so i had to choose several other funds






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jimbeam
USA Fan
University of LSU
Member since Oct 2011
32522 posts

re: Same 401K and Roth IRA?


Vanguard's target plans include index funds people invest heavily in anyway. If you are ok with the glidepath, they are super simple things to invest in.





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Volvagia
LSU Fan
Baton Rouge
Member since Mar 2006
41010 posts

re: Same 401K and Roth IRA?


I use the Vanguard target for my 401k, but use my Roth to cherry pick investments.

The nice thing about having your own IRA is the freedom that goes with it.

Don't throw it away doubling down on the same thing as your 401k.

Personally my Roth IRA has VHCOX and VSEQX



This post was edited on 11/14 at 3:18 pm


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TriadLegend
LSU Fan
Baton Rouge
Member since Jul 2013
4 posts

re: Same 401K and Roth IRA?


Yea I'm mostly looking to set it and forget it. I may check on them every couple months to see how its going but that's about it.





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TriadLegend
LSU Fan
Baton Rouge
Member since Jul 2013
4 posts

re: Same 401K and Roth IRA?


I was skeptical about doubling the down. I'll just have to do some research see what funds I want to include in my IRA. I want something that doesn't require a lot of maintenance if that makes sense. Something I can just put into and feel confident. I'm afraid if I get too involved with switching investments I'll cost myself money in the long run.





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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
30185 posts

re: Same 401K and Roth IRA?


I pick my own index funds instead of the target funds, mainly because most target funds focus on US stocks and bonds and there's much more out there.

But I put my less volatile holdings in the 401 and the more volatile ones in the Roth due to the fact that Roth gains are tax-free while 401 gains are merely tax-deferred.






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