Senator Rubio unveils proposal to reform retirement policy

[whell]

Originally Posted by Ike Bana

Whell remains quiet as a dormouse.

Pardon me for not being fully attentive to your ramblings.

You can cherry pick articles all day long. The long standing guidance from most investment professionals for the average Joe is to max out the pre-tax investment options first. Then with any left over funds available for investing, can them be directed to post tax investing options. Or, if you have the discipline and comfort level to diversify, contribute up to your employer's match, and then pursue post tax options. The level at which you might start considering post tax retirement options is also a function of your tax bracket: the higher your bracket, the more you'd want to leverage your 401(k).

For example:

http://www.schwab.com/public/schwab/...a_vs_401k.html

"If your employer doesn't offer a retirement plan, you can always start by putting money in a traditional IRA or Roth IRA. But if you have access to a 401(k) or other employer plan, and your 401(k) offers a matching contribution, that's usually the best place to start.

For example, let's say you make $115,000 per year. Your employer matches your 401(k) contributions dollar-for-dollar up to 6% of your salary. In this case, the first $6,900 of savings should go into your 401(k) plan. Why give up free money?

After you fund your tax-advantaged options to the fullest (as shown in the table below), move on to other ways to save for retirement if you're able to. Should you put the rest of your savings into your 401(k)? Or should you consider a traditional IRA or Roth IRA? "

OR

http://www.aarp.org/money/budgeting-...-the-401k.html

"So what can you really rely on?

In part, your 401(k), experts say. Don't abandon it. But even Ted Benna, who is widely acknowledged as having invented the first 401(k) in 1981, has said that the new kind of account was never meant to be the sole vehicle for retirement saving.

The best route, many financial advisers now say, is to feed your 401(k) with whatever amount it takes to get your employer's full match."