Andy Rosen breaks down why one might choose an IRA over a 401K when looking into retirement options.

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Why Choose an IRA over A 401K? | NerdWallet #Shorts
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Individual Retirement Accounts (IRAs) and 401(k) plans are popular retirement savings options that offer tax advantages and help individuals plan for their golden years. While both options have their own benefits, there are several reasons why choosing an IRA over a 401(k) might be the best decision for you.

One of the main reasons to choose an IRA over a 401(k) is flexibility. With an IRA, you have more control over how your money is invested, giving you the ability to choose from a wider range of investment options. This can allow you to tailor your investments to your specific goals and risk tolerance, which may not be possible with a 401(k) plan that has limited investment choices.

Another advantage of an IRA is that you can open one on your own, without needing to rely on your employer to offer a 401(k) plan. This can be especially beneficial for individuals who are self-employed or who work for a company that does not provide a retirement savings plan. Additionally, with an IRA, you have the flexibility to switch providers or rollover your account to a different institution if you are not satisfied with the service or performance of your current provider.

Furthermore, IRAs typically have lower fees compared to 401(k) plans, which can help you save more money in the long run. 401(k) plans often come with administrative and management fees that can eat into your retirement savings, while IRAs usually have lower fees and expenses.

Lastly, IRAs offer more options for beneficiaries than 401(k) plans. With an IRA, you can name multiple beneficiaries and specify how your assets should be distributed after your passing. This can help ensure that your loved ones are taken care of and that your legacy is protected.

In conclusion, while both IRAs and 401(k) plans are great options for saving for retirement, there are several reasons why choosing an IRA over a 401(k) might be the best choice for you. From greater investment flexibility and lower fees to more options for beneficiaries, an IRA can offer you more control over your retirement savings and help you achieve your long-term financial goals.