ROTH VS 401K

The 401(k)  and Roth IRA are two of the most popular retirement investment vehicles out there. There are however some big differences.

There is of course one huge advantage the Roth has over the 401k. 
Because the Roth is an after tax contribution. This means when you do start taking it out it will be done completely tax free. 
With $7000 and later $8000 yearly contributions compounding over the decades this potentially represents several million dollars of now TAX FREE withdraws.

While all this is great, theres several less than ideal things to remember.
For starters, with no company matches its nearly impossible for any investment vehicle, Roth IRA included, to match the 401k combined performance.
The contributions for the Roth so much less it means a far more intense commitment for most investors.
Basically you have to invest the maximum to appreciate the effects of a lifetime of tax-free withdraws. 
Also since most companies have a 401(k) plan set up for their employees you most likely will have to set up a Roth IRA on your own.

Whatever option you choose, you should base this decision on what your situation and what you think your situation will look like as you age.
Both the 401k and the Roth IRA are great instruments toward your long term wealth.
 Its to your advantage to take full advantage of at least one of them.

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