SmartMoney reports “For those who aren’t in dire financial straits, conventional wisdom holds that dropping out of one’s 401(k) is generally as foolish as dropping out of high school. But there are some exceptions. If there is no company match, says Charles Buck, a financial planner in Minnesota, investors may be better off with a Roth IRA, if they qualify. A Roth IRA at a brokerage will offer more investment options, he says, many with lower fees. Also, for young people who may be saving to buy a house, a Roth IRA allows savers to withdraw their principal, penalty-free. Buck’s advice to his own 30-year-old son: “Participate only to the limits of the employer match, and fund a Roth IRA with the rest.”
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