Roth IRA

The 401(k) vs. the Roth IRA. Which is Better?

Pitting retirement accounts against each other is not quite as thrilling a comparison as others, but the exercise is important as young families make plans for building future wealth.

Two of the most popular retirement accounts--401(k)s and Roth IRAs--are nearly identical in purpose but worlds apart in their composition.

In this post I’ve broken the main characteristics of 401(k)s and Roth IRAs into four categories. It’s impossible to make a true “apples to apples” comparison of these retirement accounts, but I hope this can get you a little bit closer and help your family make smarter decisions around your retirement.

How a Roth IRA Is The Ultimate Utility Knife of Most Financial Tools

Like utility knives, there are a few investment tools that are relatively simple in their design and extremely powerful in their effectiveness. One of these, without question, is the Roth IRA.Here are three attributes--utilities if you will--which make a Roth IRA such a powerful tool for families to build and use their wealth.