How a 401k Rollover to Vanguard Saved Me $260,000

After quitting my big corporate job, I had an item on my checklist that I wasn't sure how to tackle: rollover my 401k. Honestly, I didn’t care enough for it to make my to-do list. Why people rollover 401ks was lost on me. 7 months after I left the company my 401k was still invested, still growing. I still had access to it, and there were no penalties I’d encounter by leaving it where it was. So what was all the fuss about? Eventually I had enough time on my hands to take a closer look.  After some very basic research that took me about 15 minutes (20 if I…

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What’s the Difference Between a 401k and Roth IRA?

Convinced we need to save for retirement, we seek understanding of the many retirement funds available to us. The biggest question out there involves the difference between a 401k and Roth IRA. I'll answer that question in the simplest way. It all comes down to taxes. A 401k contribution is made from your gross income before taxes are taken out. Since you don't pay taxes on a 401k contribution when it's made, you pay taxes when it is withdrawn. Conversely, a Roth IRA contribution is made after taxes are taken out. Since taxes have already been paid, you are not taxed when funds are withdrawn. There are other differences, but…

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