IRA or 401(k)? The Answer May Surprise You

ira account, ira vs 401k, ira

Only 28% of American workers contribute to an IRA each year, according to the Life Insurance Marketing and Research Association.

Why don’t more save for retirement with an IRA? According to the study, 33% say they are simply procrastinating. If that's you, you're going to lament that when you want to retire.

Another 25% told the association, “I don't need to save in an IRA. I have a plan at work.” Glad you save in a 401(k) or other workplace plan, but that’s irrelevant. If all you’re doing is saving at work, you’re not saving enough to meet your future retirement income needs.

And 14% don't contribute to an IRA because they don't know how.

Well, duh. If you don’t know how, just ask somebody who does! I don't know how to change the oil in my car, so I take it to Jiffy Lube. Just because I don’t know how to do it doesn’t mean it doesn’t need to get done. 

So if you find the world of IRAs confusing, let us help you.

Don't sacrifice your retirement.