I joined a new company and they dont offer a 401k employer match.

Anonymous

August 1,2023 at 11:15PM UTC

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I joined a new company and they dont offer a 401k employer match. It may change inin the future as they grow. I'm also not convinced that 401k is the goldmine for retirement success since I have seen plenty of times when people lost their 401k money as the markets crashed.

What are some good if not better ways to get returns on my money for retirement? I have thought of Roth IRA. Would a high yield savings account or high yield CD also be just as good?

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AnonymousAugust 1,2023 at 11:35PM UTC
If they don't offer a retirement plan then it should be high compensation with company stock. Otherwise, I would not stay with that employer long.
AnonymousAugust 2,2023 at 4:46PM UTC
they offer a 401k plan but no employer match
AnonymousAugust 2,2023 at 6:03PM UTC
Then it's wise to consider other investment strategies. But you may save on investment expenses by contributing. Compare fund costs.
AnonymousAugust 2,2023 at 4:56PM UTC
People don't typically lose all their 401K money because of market dips - unless they poorly chose their investments. If you are closer to retirement you choose more conservative investments. If you are further away from retirement you invest more aggressively and simply ride out the market dips. I lost ~$20K in my investments early in the pandemic (2020) but by mid 2022 I gained over $100K; that dipped a bit end of 2022 but right now my market gains are close to the high point in mid 2022. Markets fluctuate you just need to ride it out, it always springs back.
Roth IRA is a good choice but that is also market dependent. Investing in an IRA or 401K will yield the best return on your investment. I would talk to an investment professional to understand how the market works and what is the best investment strategy for you. Why not give a call to one of the big companies (Vanguard, Fidelity, Charles Schwab) and have an exploratory chat with one of their investors? Tell them you are considering a Roth IRA and have them explain the benefits and what your investments would be.
AnonymousAugust 3,2023 at 1:21PM UTC
Does your 401k plan come along with an investment company? ex: Fidelity is the managing company for my 401K and stock, so I have access to their investment experts. Another option might be looking at your bank/credit union. They very often have investment specialists who can help guide you through making money decisions based on your risk tolerance, age, expected retirement year, etc. Other resources to look at would be your local library. I know mine regularly runs programs around things like investing, computer usage, etc. and don't forget to speak to your Reference librarians, they often have things at the ready (resources, books, etc.)
AnonymousAugust 4,2023 at 5:07PM UTC
Advice here might be okay but if I were you I would seek out your local saving bank and most of them have financial advisors there that will sit down with you and put together a plan for no charge based upon what you want for your future retirement. Those folks have gotten training on not only the portfolios that their bank provides but can also help with market trades and other products that you may not be thinking about which may pay annuities. Your employers EAP program may have similar people too or the 401K plan might have advisors as well. Interview all of these resources and then you can make the best decision on how to grow your money.