Master your 401(k) and IRA accounts

Wondering what's the difference between a 401(k) and an IRA account? Trying to find the best platforms to manage your accounts? We have the perfect solution for you! 

Beginning your retirement plans is quite crucial! As it's something you won't be enjoying any time soon, it may seem like it's not important right now. However, it's a decision that will define your adult life, so you should pay special attention to it.

When it comes to retirement, there are two popular options: the 401(k) and the Individual Retirement Account (IRA). Although they have some differences, there are some people that even manage to have both!

IRA account

An Individual Retirement Account allows anyone to contribute to their retirement. As long as you are under the age of 70, you are qualified for this plan.

One of the most distinctive characteristics of the IRA is that you can own gold as an asset. You just need to check which companies grant this benefit. Investing your money into gold IRA companies can be safer as there are no manipulations that can be done.

Another pro about this account your asset won't be taxed until you decide to withdraw. Bear in mind that both traditional and Roth IRA contributions have a limit of $5,500, or $6,500 if you are over 50 years old.

401(k) account

These types of accounts can only be opened through employers. So, if your employer doesn't offer this plan, you should turn to a Roth IRA retirement plan.

What you can do to increase your contributions to the account is to match a personal contribution yourself. If your employer has set a contribution of up to 6% of your income, you should not contribute less than that percentage. Otherwise, you'd be turning down some free money.

THE BEST TOOLS TO MANAGE YOUR 401(k) AND IRA ACCOUNTS

1. Blooom

You may know this tool as the only dedicated ROBO-advisor for 401(k) accounts. While you don’t have to pay for an analysis of your retirement plan, there’s a monthly $10 fee if you want to get full account management. Your money will be well spent, as you’ll get constant portfolio upgrades, financial advice from experts, lower fees, and even alerts on suspicious activities on your accounts!

You can trust that your information will be kept safe with the platform’s strong encrypting and overall security. This helps you link your 401(k) and IRA accounts safely, which will then be used by bots to look for the available funds best suited for you. these decisions based on fund cost and smart money trade can help you increase your savings.

The process is simple: it starts with questions on your investment habits, which will then be organized in an investment strategy. You’ll also get a comparison between your current and your ideal allocation and a quick review of your potentially optimized diversification and fees.

2. Personal Capital

This free tool allows you to enable all your investment accounts, including 401(k) and IRA accounts, in one place. With this feature, it’s also possible to manage your contributions and track their performances. You can also get updates on your 401(k) fees!

If you’re looking for help to manage your money, you can benefit from this platform’s calculation of your net worth. This should come in handy when making smart financial decisions. Once you know how much money you have, the Fee Analyzer tool can automatically sort out your savings and spending. There’s the possibility to set a monthly budget or plan and check whether you can stick to it or not!

You should check other financial tools, such as Retirement Planner, Savings Planner, and Investment Checkup. This way, you can set goals for your retirement, work on the range of your annual savings, look at projections to see if you’ll meet your retirement goals, and improve your investments. You’ll be able to see your investment’s performances and how they can be improved by minimizing the risks and maximizing the returns.

Related Articles

More News

More News