January 27, 2009

401K vs. Savings

I have been reading articles about 401k vs savings and where you should put your money in this kind of economy. I am contributing enough to my 401K to get the company match and then been contributing to my Roth IRA. After making these contributions, I put a little bit towards my savings. Weighing the options, I will never think about contributing less than the company match even though I am losing a little money in my 401K. It is free money after all!

What have you been doing? Are you still contributing to your 401K or do you feel safer making payments to your savings account?


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Money Wise
Working towards a goal!

6 comments:

  1. I increased the amount I'm putting in my 403b but I stopped contributing to my Roth IRA so I can beef up my savings. I decided to go higher with the pretax money and hopefully I can start contributing to my Roth IRA after I reach my emergency savings goal.

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  2. Damn straight my friend! I'm an avid fan of plowing money into your 401k regardless of the economy...in fact, ESPECIALLY in this economy when you get pick up stuff dirt cheap! I'd always put in at least the max of what your employer's doing, and then max it all out before putting it into an IRA - but that's just my opinion :)

    Savings is good to have too, esp. if you don't have an emergency fun, only cuz you have acess to it 100% w/out penalties and all. BUT if you have a solid E.Fund, then i'm totally with ya buddy.

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  3. asgreen: I am trying to get my EF to a good level as well!

    J. Money: I agree, it's like a discount! :)

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  4. Personally, I think now is the best time to keep putting money into your 401(k), while stocks are low, in the hopes they rebound as they historically do.

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