Can You Trade Options 401k

Roth IRA vs 401k Você não pode ter que escolher Uma das perguntas de aposentadoria mais comuns que me perguntam é: Roth IRA ou 401 (k) Embora ambas são boas opções vale a pena considerar, a resposta isnt sempre tão simples como se poderia pensar. Além disso, é crucial para você entender que você não pode mesmo necessidade de escolher um ou outro. Se você é capaz de contribuir para um trabalho-patrocinado 401 (k), não há nenhuma razão que você não pode também contribuir para um Roth IRA, desde que você atender a determinadas condições. Como uma nota lateral, se you8217re olhando para obter um Roth IRA, o dólar simples recomenda Scottrade como uma boa escolha devido ao best-in-class serviço ao cliente e apoio. Comece o crescimento de dinheiro livre de impostos agora Antes de aprofundarmos este debate, vamos primeiro certificar-nos de que temos uma compreensão de trabalho de cada uma dessas opções para a aposentadoria eo que elas implicam. O que é um 401 (k) A 401 (k) é um plano de aposentadoria de contribuição diferida patrocinado pelo empregador, assim chamado porque é definido na seção 401 (k) do código do IRS. Em poucas palavras, funciona da seguinte forma: Você se inscreve para um plano 401 (k) em seu local de trabalho e escolha opções de investimento dentro do plano. Seu local de trabalho tira dinheiro do seu salário antes que os impostos sobre a renda sejam retirados e deposite isso em seu plano. Em alguns locais de trabalho, suas contribuições são acompanhadas pelo empregador. Então, quando você atinge a idade de aposentadoria, você pode tirar dinheiro do 401 (k), mas esses saques estão sujeitos a imposto de renda 8211 desde que você didn8217t pagá-lo mais cedo, você tem que pagá-lo mais tarde. (O benefício da estrutura de imposto diferido baseia-se no pressuposto de que você estará em uma faixa de imposto mais baixa na aposentadoria em comparação com seus anos de rendimentos.) Atualmente, não há limite de renda superior sobre quem pode contribuir para um 401 (k), Mas um indivíduo poderia contribuir no máximo 18.000 para o seu 401 (k) em 2016, eo montante total máximo que pode ser contribuído entre empregador e empregado é de 52.000 no mesmo ano. Benefícios de um 401 (k) Suas contribuições podem resultar em economia de impostos durante cada ano que você contribuir. Seu empregador pode oferecer um empregador 8212 a. k.a. dinheiro livre. Na maioria dos casos, o dinheiro que você contribui pode ser retirado diretamente de seu salário. Fora da vista, longe da mente. Você pode contribuir muito mais a cada ano calendário usando esta opção (até 18.000 por ano em 2016) O que é um Roth IRA Um Roth IRA é uma conta de aposentadoria individual independente que você configurar diretamente com uma empresa de investimento. Seu nome vem de seu principal patrocinador legislativo, o senador William Roth. Com um Roth IRA, você pode configurar uma conta com qualquer um dos corretores on-line. Escolher opções de investimento com eles e, em seguida, depositar diretamente dinheiro após o imposto (de sua conta corrente, por exemplo) no Roth IRA. Em seguida, quando você atender a alguns requisitos básicos (uma vez que você tem 59 anos de idade ou mais, e teve o plano de cinco anos ou mais), você pode retirar seus depósitos e ganhos de investimento completamente livre de impostos. Você também pode retirar fundos sem penalidade para pagar a educação de uma criança ou um adiantamento em sua primeira casa. Em 2016, a contribuição máxima que você poderia fazer para um Roth IRA é 5.500 por ano (a menos que você 8217re mais de 50). No entanto, há uma grande ressalva: Há limites de renda sobre quem pode contribuir. Se você fizer mais de 116.000 individualmente ou 183.000 em conjunto, você pode contribuir com o valor total (e pode não ser capaz de contribuir em tudo). Você pode descobrir muito mais detalhes na entrada da Wikipedia em Roth IRAs. Benefícios de Roth IRA Suas retiradas eventuais serão isentas de impostos desde que você financiou sua conta com dólares após impostos. Você pode realmente retirar suas contribuições a qualquer momento sem penalidade. (Você não pode começar a retirar seus ganhos antes de 59 anos sem incorrer em uma penalidade) Ao contrário de um trabalho 401 (k), o seu Roth IRA permitirá que você escolha e escolher uma empresa de corretagem e suas opções de investimento individual. Roth IRA vs 401 (k): Quais são as principais diferenças As grandes diferenças entre os dois são as contribuições do empregador, optionsmanagement investimento, e os impostos. Olhe para cada aspecto. Contribuições Empregador Com um 401 (k) plano de aposentadoria, um empregador pode corresponder contribuições feitas por um empregado até uma certa percentagem. Por exemplo, vamos dizer que você contribui 10 de seu salário bruto para o seu trabalho-patrocinado 401 (k). Em alguns casos, seu empregador combinará suas contribuições até uma determinada porcentagem, geralmente em algum lugar entre 3-6. Quando seu empregador oferece um perk como este, é crucial que você aproveite-o. It8217s dinheiro livre, afinal 8211 don8217t transformá-lo para baixo. Em poucas palavras, contribuições patronais também são uma das vantagens de usar um 401 (k) em primeiro lugar. Uma vez que um Roth IRA é financiado apenas com o seu dinheiro após impostos. Você não receberá esse benefício quando usar esse tipo específico de conta. Investment OptionsManagement Apesar de receber uma correspondência empregador quando você usa o seu 401 (k) pode ser bastante atraente, isso não significa que usando esse tipo específico de conta de aposentadoria doesnt vêm com seu próprio conjunto de inconvenientes. Com um 401 (k), you8217re amarrado em qualquer gestão e opções de investimento são disponibilizados para você pelo plano de sua empresa oferece. Em alguns casos, isso significa que suas escolhas poderiam ser bastante esparso e não tudo o que grande, embora isso não é sempre o caso. Itens importantes a procurar em seus planos de investimento são rácios de despesas e opções de investimento. Os melhores planos de empregador terão baixas despesas e tantas opções quanto possível. Com um IRA Roth, você tem permissão para escolher sua gestão e, portanto, também suas opções de investimento você escolhe a casa de investimento que você deseja usar. Roth IRAs oferecem uma vantagem em que eles permitem que você escolha o seu gerente plan8217s, embora se o seu 401 (k) oferece boas opções, isso pode não ser uma grande vantagem. Outra grande diferença entre um 401 (k) e um IRA Roth é a forma como os impostos são pagos em suas contribuições e suas retiradas. Em suma, o seu plano 401 (k) é financiado com dólares antes de impostos, o que pode ser benéfico, uma vez que reduz a sua responsabilidade fiscal durante cada ano que você contribui 8212 muitas vezes no auge de sua carreira. No entanto, o dinheiro que você tirar eventualmente de seu 401 (k) será tributado na retirada em sua taxa de imposto atual. Enquanto isso, um Roth IRA funciona em quase exatamente o oposto. O dinheiro que você contribui já foi tributado, o que significa que fazer uma contribuição Roth não afetará sua renda tributável no ano que você contribuir. No entanto, como você já foi tributado em suas contribuições, você não precisará pagar impostos quando você começar a retirar fundos para a aposentadoria. Vantagem: Depende de suas taxas de imposto Como você pode saber qual taxa será maior Aqui estão algumas coisas a se perguntar. Será que o meu aumento de renda entre agora e aposentadoria Se a resposta for sim, você provavelmente estará em um suporte fiscal mais elevado quando você se aposentar, o que favorece o Roth. Se você estiver perto de seu pico, você provavelmente estará no mesmo suporte ou mais baixo, o que favorece o 401 (k). Vou estar trabalhando em meus anos de aposentadoria Se a resposta for sim, você tem uma chance muito maior de, pelo menos, estar no mesmo suporte fiscal que você está agora. Será que a mudança de paisagem política para taxas de imposto mais elevadas Este, honestamente, é completa adivinhação. Se eu tivesse que adivinhar, eu especularia que as taxas de imposto vão subir no futuro. Se for esse o caso, você pode querer inclinar-se para um Roth IRA desde suas distribuições futuras serão isentas de impostos. Se você espera pagar uma taxa de imposto mais baixa no futuro, no entanto, um 401 (k) financiado com dinheiro antes do imposto pode ser uma aposta melhor desde que você não será tributado sobre esse dinheiro até que você se aposentar e começar a receber distribuições. Melhores estratégias para maximizar suas contribuições de 401 (k) ou Roth Contribuir para, pelo menos, um tipo de conta de aposentadoria fielmente é crucial se você nunca esperar para se aposentar. Na maioria dos casos, os fundos da Segurança Social não serão suficientes para sustentar você, e sua economia de dinheiro provavelmente não terá a oportunidade de crescer da maneira que faria se você tivesse investido esse dinheiro todo o tempo. Quando se trata de escolher entre um Roth IRA e 401 (k), não há realmente nenhuma resposta perfeita. Sua situação individual afetará qual plano funciona melhor para você, e mesmo assim, existem várias maneiras de olhar para ele. Também é importante notar que você não tem que escolher um tipo de conta sobre o outro. Você pode contribuir até 18.000 para o seu 401 (k) e colocar até 5.500 em um Roth IRA ou IRA tradicional nesse mesmo ano. Aqui estão algumas estratégias diferentes que você pode querer considerar como você avançar. Max o seu 401 (k) e contribuir para um Roth. Se o seu trabalho-patrocinado 401 (k) oferece baixas taxas, muitas opções e um empregador correspondem às suas contribuições, você pode querer max para fora para o seu 401 (K) e contribuir para um Roth IRA. Esta é uma ótima estratégia para quem tem dinheiro extra para investir e quer reduzir sua responsabilidade tributária. Contribua para o seu 401 (k) até a partida da empresa, em seguida, começar a financiar o seu Roth IRA. Se o seu trabalho 401 (k) não vem com as melhores opções, mas você ainda deseja aproveitar o seu jogo da empresa, você sempre poderia contribuir com uma percentagem igual ao que o seu empregador se comprometeu a contribuir, em seguida, concentrar-se em contribuir para o seu Roth IRA. Jovens especialmente devem considerar os benefícios futuros de um Roth IRA desde muitos especialistas concordam que as taxas de imposto poderia subir significativamente ao longo das próximas décadas. Contribuir com um montante definido para cada tipo de conta a cada mês. Se você está lutando para decidir qual tipo de conta irá beneficiá-lo no longo prazo, você pode apenas querer dividir a diferença e contribuir dólares iguais para ambos. Configure suas contribuições 401 (k) para incluir uma porcentagem de sua renda que você pode facilmente combinar em seu Roth IRA. Em seguida, faça um compromisso de investir todos os meses, não importa o quê. Melhor Roth IRA Provedores Usando um 401 (k) significa tirar proveito das opções de investimento e corretora empresa seu empregador escolheu para você. No entanto, com um Roth IRA, você está no seu próprio para tomar esta decisão importante. Felizmente, várias empresas online oferecem uma vasta gama de serviços financeiros que incluem Roth IRA set-up e gestão. Aqui estão algumas das melhores opções on-line, bem como um resumo básico do que cada um tem para oferecer. Quando se trata de empresas de corretagem on-line, Scottrade é conhecida por oferecer comércios de baixo preço e serviço ao cliente de qualidade. No entanto, baixas taxas vêm ao custo de menos de ferramentas de investimento estelar e recursos. Alguns outros benefícios do Scottrade: Cotações em fluxo contínuo: Ao contrário de muitas outras contas de corretagem on-line, o Scottrade não faz você pagar mais para ver as citações de streaming do dia um. Basta abrir uma conta e preencher alguns formulários para obter acesso. Scottrade Elite: Financiar sua conta com mais de 25.000 e você se qualifica para Scottrade Elite, um serviço VIP que abre opções para ferramentas avançadas e gráficos. Taxas baixas e sem taxas ocultas: Além da taxa de comércio flat ilimitado 7, você também pode usar Scottrade sem se preocupar com taxas ocultas ou encargos. Muitas opções de investimento: Com a Scottrade, você pode optar por investir em tudo, desde ações até fundos mútuos e produtos bancários. Suas ofertas de fundo mútuo sozinho dar-lhe mais de 14.000 opções para escolher. TD Ameritrade Há mais de seis milhões de pessoas em contas com a TD Ameritrade. Fundada em 1971, a empresa tem provado ao longo dos anos, oferecendo excelente serviço ao cliente, profissionais de investimento que você pode contar, e taxas que são competitivos com empresas similares. Embora a TD Ameritrade cobra uma taxa ligeiramente mais alta para os comércios em 9,99, eles oferecem outras características que alguns dizem que mais do que compensá-la, incluindo a oportunidade de falar com um consultor financeiro de graça durante uma consulta sem obrigação. Além do básico, aqui estão alguns dos maiores benefícios que vêm com a escolha de TD Ameritrade: Excelente suporte e atendimento ao cliente: TD Ameritrade apoio ao cliente está disponível 247. Uma das melhores plataformas de negociação no negócio: Ao contrário de outras corretoras com um pouco básico Plataformas de negociação, a TD Ameritrade é conhecida por sua plataforma de negociação superior e poderosas ferramentas de pesquisa. Sem minimo: Com TD Ameritrade, não há depósito mínimo de abertura. Filiais locais para conveniência e serviço: Muito como Scottrade, TD Ameritrade também oferece sucursais locais convenientes para um serviço mais personalizado. Como uma das primeiras corretoras a entrar on-line, a ETRADE é uma das mais estabelecidas e confiáveis ​​do grupo. Todos os clientes da ETRADE têm acesso a cotações de ações em fluxo contínuo, diversas ferramentas financeiras e de investimento e mínimos de conta abaixo da média. Os investidores que fazem entre 150 e 1.500 negócios por trimestre também se qualificam para uma taxa de 7,99 comissões baixas, enquanto os investidores que fazem mais negócios muitas vezes se qualificam para taxas ainda mais baixas. Enquanto isso, a ETRADE também oferece muitos ETFs sem comissão, bem como acesso móvel, atendimento ao cliente e alguns ramos físicos. Além desses princípios, aqui estão alguns dos principais benefícios que vêm com a escolha ETRADE: Muitas opções de investimento: Com ETRADE, você terá acesso a mais de 8.000 fundos mútuos, 1.300 dos quais vêm sem carga e sem taxas de transação. Além disso, você também terá acesso à negociação forexfuture, que isnt sempre disponível com outras empresas on-line. Mínimos mínimos de conta: Para abrir uma conta com o ETRADE, o mínimo da conta é de apenas 500 ou 2.000 para uma conta habilitada para margens. Excelentes ferramentas de negociação: além de sua plataforma básica de negociação, a ETRADE também sai do caminho para garantir a máxima educação de comerciantes com poderosas ferramentas de negociação e pesquisa que estão disponíveis para todos os usuários. O Robo-Advisor Roth IRA opções a considerar Enquanto muitas pessoas gostam de negociação de ações e aprender mais sobre o investimento, outros preferem minimizar suas taxas e usar uma estratégia de compra e retenção. Felizmente, existem várias empresas de investimento on-line que podem ajudá-lo a gerenciar sua aposentadoria e colocá-lo em um caminho para atingir seus objetivos de longo prazo, sem nunca pisar em um escritório ou sentir-se pressionado a investir em fundos de alto custo. Aqui estão algumas das melhores empresas de planejamento financeiro on-line lá fora: Betterment Betterment é semelhante a outras empresas de corretagem on-line em que lhe fornece um lugar para gerenciar suas contas de aposentadoria e investimento. No entanto, Betterment tomou a postura de que muitas taxas podem comer em seus retornos de longo prazo e ajustou sua taxa de acordo em conformidade. Para reduzir as taxas, a Betterment utiliza fundos negociados em bolsa de baixo custo, ou ETFs, que são semelhantes aos fundos mútuos, mas que podem ser negociados como ações. Além disso, Betterment oferece uma tonelada de recursos de gerenciamento de riqueza abrangente que muitas das empresas de negociação de ações não, como reequilíbrio de carteira automatizada, recolha de imposto de perda e reinvestimento automático de dividendos. Taxas de aprimoramento também são altamente competitivas quando comparadas às contas gerenciadas tradicionais. Atualmente, seus honorários são baseados em seu saldo de carteira, e vêm em três camadas: Construtor: 0,35 de seu saldo médio anual de menos de 10.000 Melhor: 0,25 do seu saldo médio anual acima de 10.000 Melhor: 0,15 do seu saldo médio anual acima de 100.000 Cada um Essas opções não incluem taxas de transação, taxas de negociação e taxas de reajuste. No entanto, a recolha gratuita de prejuízos fiscais só está disponível para os planos Better and Best. Enquanto isso, os indivíduos cujos investimentos caem na camada Builder (contas abaixo de 10.000) devem configurar 100 por mês em auto-depósitos e pagar uma taxa de gerenciamento de conta de 3 por mês. Wealthfront Muito como Betterment, Wealthfront oferece ETFs líquidos de baixo custo (fundos negociados em bolsa), a fim de reduzir o custo global de investir para seus clientes. Wealthfront não permite a negociação de ações individuais em tudo, no entanto, e em vez disso se concentra em usar ETFs para ajudá-lo a criar um investimento personalizável e plano de aposentadoria. Se o seu objetivo é investir automaticamente uma certa quantia de dinheiro a cada mês e ter seu investimento escolhido automaticamente para você com base em critérios predeterminados, então Wealthfront poderia ser para você. Além do uso de ETFs de baixo custo, a Wealthfront também oferece vários benefícios que podem ajudá-lo a aprender mais sobre como investir enquanto otimiza seus retornos. Alguns desses benefícios incluem reequilíbrio automatizado da carteira, colheita automática de prejuízos fiscais e o programa Wealthfront convidar, que pode ajudá-lo a ganhar serviços gratuitos em troca de referir família e amigos. Heres como as taxas empilham acima: Seu primeiro 10,000 investido com Wealthfront é controlado para livre. Tudo o que você investe além de 10.000 é cobrado uma taxa de administração de 0,25 por ano. No entanto, é importante lembrar que você poderia realisticamente obter seus serviços gratuitamente apenas por se inscrever e obter várias pessoas para fazer o mesmo com o seu código de referência. Para cada pessoa que você começa a se inscrever, você atualmente recebe um adicional 5.000 geridos gratuitamente. Dependendo de quanto você tem investido, e quantos amigos e membros da família que você tem, você pode ganhar o direito de ter a maioria dos seus investimentos geridos para nenhuma despesa fora de bolso de todo. Capital Pessoal Com Capital Pessoal. Você tem duas opções para escolher: Você pode se inscrever para o seu serviço gratuito, a fim de obter acesso a uma série de ferramentas de gestão de riqueza para nenhuma despesa de bolso, ou você pode se inscrever para o seu serviço pago que inclui acesso Para um consultor financeiro pessoal. O serviço gratuito oferecido pela Personal Capital é bastante notável. Depois de associar as suas contas, obterá não apenas uma imagem clara do seu património líquido, mas também o acesso a ferramentas inovadoras, como um analisador de taxas 401 (k), uma ferramenta de controlo de investimento e uma ferramenta que lhe mostrará o seu objectivo de alocação de activos ideal. Personal Capital também acompanha seus gastos para você e coloca as coisas em perspectiva com gráficos e gráficos de pizza de fácil compreensão. Quando se trata do serviço pago, Personal Capital é uma das únicas opções que lhe atribui um consultor financeiro pessoal. No entanto, esse privilégio tem um preço. A lista a seguir mostra o quanto você vai pagar Personal Capital para supervisionar toda a sua carteira de investimentos: Contas até 1 milhão: 0,89 Contas até 3 milhões: 0,79 Os próximos 2 milhões: 0,69 Os próximos 5 milhões: 0,59 Mais de 10 milhões: 0,49 Embora Estas taxas são mais elevadas do que alguns de sua concorrência, eles ainda são significativamente mais baixos do que as taxas cobradas pelos consultores financeiros tradicionais para as contas geridas. Para reduzir as taxas gerais associadas ao gerenciamento de sua conta, o Personal Capital usa cestas de títulos individuais e ETFs para criar um portfólio de modelos. Tenha em mente que o gerenciamento de patrimônio, as taxas de negociação e a custódia estão todos incluídos, de modo que seu preço é realmente tudo incluído. Mesmo se você não optar por usar o Capital Pessoal para gerenciar seu Roth IRA e outros investimentos, você ainda tem muito a ganhar por inscrever-se para as suas ferramentas de gestão de riqueza livre. Cadastre-se e você pode facilmente descobrir o seu patrimônio líquido, quanto você está pagando em taxas de aposentadoria a cada ano, e sua alocação de ativos ideal. A inscrição é gratuita e você não tem nada a perder. Escolhendo a opção certa Se você está escolhendo entre um 401 (k) ou IRA Roth, ou simplesmente tentando escolher qual empresa de corretagem você quer usar para fazer negócios ou gerenciar seus investimentos, é importante lembrar que nunca existe um one-size - Fits-all opção. Para descobrir o que é melhor para você, você tem que explorar todos os prós e contras com cada oportunidade e descobrir como eles se relacionam com a sua própria situação. A coisa mais importante a lembrar é que, na maioria dos casos, o tempo está do seu lado. Quanto mais cedo você começar a investir e poupança para aposentadoria, o melhor youll ser. Portanto, ter tempo para escolher qual o tipo de opções de aposentadoria é melhor para você, mas não deixe de ter muitas opções dissuadi-lo de tomar uma decisão completamente. Carregando Disqus Comentários. Ative o JavaScript para visualizar os comentários fornecidos por Disqus. Grande post olhando para o básico do que a maioria das pessoas têm para suas escolhas de aposentadoria. Eu tenho um Roth IRA, desde que eu trabalho para mim, e eu estou pensando em abrir um solo 401 (k) ou um SIMPLES também. Outra consideração fiscal a ter em mente é que o seu suporte fiscal é (como eu entendo) determinado por sua renda tributável, e não o seu rendimento total. Se sua renda não crescer entre agora ea aposentadoria, mas a maior parte de sua renda pós-aposentadoria vem livre de impostos de um Roth IRA ou Roth 401 (k), então você vai estar em um suporte fiscal mais baixo do que agora. Isso, eu acho, é uma boa razão para misturá-lo entre o tradicional e Roth, em vez de ir direto Roth. Uma coisa que muitas vezes é negligenciada nessas conversas é se o valor de suas contas afetará o status de ajuda financeira com base em necessidades para a faculdade. Um amigo que trabalha em um bem-estar social e serviços de escritório disse que o valor de um Roth IRA conta contra o destinatário, enquanto 401 (Roth IRA fazer você parecer mais rico quando os analistas de ajuda financeira determinar a sua necessidade e expectativa de contribuição familiar K) s não. Existe uma distinção semelhante na ajuda financeira Se assim for, para alguém perto de freqüentar a faculdade ou retornar à escola de pós-graduação, pode fazer sentido ignorar as recomendações convencionais. Como Dave, eu contribuo para um Roth e meu 401 (k). Para aqueles poucos de nós que o máximo de suas contribuições, um Roth tem um benefício interessante: ele efetivamente permite que você coloque mais dinheiro em uma conta de vantagem fiscal. Porque o Roth é depois de impostos, it8217s como se você contribuiu, digamos, 25 mais do que se você tivesse colocado esse dinheiro em um 401 (k) em seu lugar. Claro que, por definição, se você estiver maximizando, você provavelmente está maximizando tanto o Roth quanto o 401 (k). Mas pensar nisso dessa forma abre opções como rolar 401 (k) s de empregadores anteriores em Roth IRAs. As taxas de imposto são definitivamente maneira que vai acima (mesmo se McCain é elegido) por causa do problema dos direitos (MedicareSocial Security). Se a saúde universal for implementada (plano de Obama), será ainda pior. Conseqüentemente, eu começaria os impostos fora do modo agora e ir Roth IRA e Roth 401k toda a maneira, certificando-se você para começar o fósforo. Também tenha em mente que muitos programas de empresa de pequeno porte 8220match8221 realmente são contribuições de participação nos lucros necessários para evitar ser pesado, o que significa que o empregado vai receber a contribuição, mesmo se não houver adiamentos salariais. Eu tenho uma conta de aposentadoria que não é nenhuma destas: a 403 (b). Qual é a diferença que eu acho que todo investidor precisa ter não apenas uma carteira com um mix diversificado de investimentos nela, mas também um mix diversificado de investimentos tributáveis ​​e livres de impostos. That8217s por que ter um 401K e um Ira Roth (ou apenas um ira) poderia ser uma boa estratégia para você. Se você quiser economizar tanto dinheiro quanto possível, salve em ambos os that8217s um total de 20,500year se você areunder 50 Meu marido tem um Roth 401k e por agora, that8217s todos os we8217re contribuindo para a nossa aposentadoria. Estamos na faixa de 15 do imposto de renda federal, e esperamos estar aqui por pelo menos mais alguns anos. Você sabe se sobre a estrada, ele pode mudar para um regular 401k Como em, deixe o Roth 401k sozinho para crescer e abrir um 401k regular para colocar novas contribuições para ele Eu concordo com Dividend Growth Investor e Johanna 8211 misturá-lo Meu O maior medo para o Roth não é o aumento dos impostos, mas baseado no consumo 8220fair8221 impostos. Eu não estou dizendo que é possível. We8217re dividindo nossas economias 6040 com IRAs tradicionais e Roth. Como precisamos retirar dinheiro na aposentadoria, esperamos que nos dê alguma diversidade à medida que tentamos administrar nossos impostos. Obrigado pela informação de qualidade sobre a diferença entre os dois tipos de contas. Embora muitas pessoas possam encontrar-se em uma situação de ora em relação a um 401 (k) e um IRA Roth, acredito que quase todos objetivo de longo prazo deve ser para financiar ambas as contas. Não só isso provavelmente levará a uma maior poupança, mas vai lhe dar maior flexibilidade com seus impostos uma vez que você é aposentado. A outra coisa a considerar com um 401k são as vantagens fiscais ocultas. Por exemplo, se você é casado arquivando um retorno comum e sua renda bruta Ajusted está abaixo de 52.000, então você se qualifica para um crédito de imposto (formulário 8880) para colocar dinheiro em qualquer conta de aposentadoria. Você pode usar 401k contribuições para abaixar seu AGI para abaixo de 52.000, em seguida, o seu 401k e roth IRA contribuições tanto qualificam para o crédito (até 1.000 por pessoa). É definitivamente paga para entender sua situação tributária particular. Quando eu li o artigo, soa-me como você 8217re que faz um 8220either or8221 tipo situação: como invest no 401 OU o IRA de Roth. Fazendo as duas coisas. Isn8217t que o que eu deveria estar fazendo para tentar salvar o máximo de dinheiro para a aposentadoria Apenas perguntando, Elizabeth Um ponto importante a considerar 8211 é preciso um enorme ninho de ovos antes de impostos para criar renda suficiente na aposentadoria para estar acima do suporte de 15. Hoje, para um casal, isso significa renda tributável de 65.100. Adicione a dedução padrão (10.900) mais as duas isenções (3.500 eC), totalizando 83.000. Se se seguir uma taxa de retirada de 4, seria preciso 2.075.000 em contas antes de impostos para gerar esse nível de retiradas. Além disso, como poucas pessoas passam por toda a sua vida sem interrupções, pode-se tirar proveito de períodos de baixa renda para converter as contas antes do imposto em um IRA Roth, e suavizar sua taxa marginal para 15 como eles vão. Naturalmente, minhas observações acima são um tanto discutíveis se um tiver um plano de pensão tradicional grande que vai substituir grande parte de sua renda. Nesse caso o conselho para ir Roth ou Roth 401 (k) é som. (Mas quem tem uma grande pensão hoje em dia E se você fizer, você ainda está economizando um alto percentual de sua renda em contas de aposentadoria) Mais considerações: funcionários do governo (e aqueles com pensões tradicionais) podem contribuir para um 401k, embora possa haver um Plano de compensação adicional disponível (8220compensação diferida8221). Muitas vezes a sua renda é maior do que o IRA dedutível, então o Roth IRA torna-se a única outra opção para uma conta de vantagem fiscal. Aqui há algo para pensar sobre a capacidade de acessar suas contribuições. Com um 401 (k) a sua contribuição é 8220trapped8221 por penalidade para retirada antecipada, juntamente com o montante retirado sendo imposto em seu nível de renda atual. Da maneira que eu entendo, você pode acessar suas contribuições para um Roth IRA a qualquer momento sem penalidade e sem implicações fiscais. Não é uma boa estratégia de investimento e você pode levá-lo para fora muito mais rápido do que você poderia reabastecer, dado os limites de contribuição. Dito isto eu considero contribuições para um Roth como um plano B ou plano C fundo de emergência. Para ser invadido antes de um 401 (k). Eu preocupo-me que no futuro haverá uma maneira para que o govt confiscate os fundos removidos de um Roth que won8217t seja tècnica um imposto. Dizer reduzir seus pagamentos SS (se houver tais coisas em 25 anos) pela quantidade de dinheiro que você tirar de seu Roth. Talvez algo muito mais sutil do que isso ainda não existe na minha filosofia. Lurker Carl diz: Eu acho que seu último parágrafo resume tudo, contribuir tanto quanto você pode para ambos os veículos de aposentadoria. Se você pode dar ao máximo para fora ambos os planos, contribuir até o seu empregador 8217s match em seu 401k e contribuir com o restante que você pode pagar em um Roth IRA. Por todos os meios, aproveitar as vantagens monetárias oferecidas pelo tio Sam e seu empregador. Se você ganhar muito para se qualificar para um Roth IRA, você provavelmente se qualifica para um IRA tradicional. Mas, no ano de 2010 apenas, IRAs tradicionais podem ser convertidos para Roth IRAs independentemente de salário e que a mordida de imposto de renda pode ser espalhada para fora sobre os anos fiscais de 2011 e 2012. Como outro cartaz mencionados, o meu favorito é o Roth 401k. Minha empresa começou a oferecer isso e eu troquei logo que eu vi. Os grandes benefícios do IRA Roth, mas com o jogo da empresa. O melhor de dois mundos. E desde que eu can8217t chegar perto de maxing para fora em uma base anual eu não bateu qualquer tipo de problema 8220cap8221. Jim Cramer diz que é melhor em seu novo livro 8211 Stay Mad. Ele recomenda que a reunião da empresa corresponda primeira 8211 causa que é dinheiro livre e pode ser 100 ou 50 retorno sobre o seu dinheiro (dependendo do seu plano). Cramer recomenda investir esse dinheiro nos fundos de menor custo que sua empresa oferece. Em outras palavras, ele concorda plenamente que prestar atenção às taxas é mais importante que retorna no longo prazo. Depois de conhecer o jogo, ele recomenda fazer o Roth IRA. Ele diz que suas opções são melhores lá para investir são melhores do que o seu 401k 8211 e ele recomenda fundos de índice de baixo custo se você don8217t ter tempo para gerenciar ativamente seu portfólio. Além disso, ele recomenda investir o resto e pagar impostos regulares sobre ele. As opções que você tem fora de um 401k são simplesmente melhor do que o que você tem dentro dela. Então combine primeiro para o dinheiro livre, então o máximo fora do Roth. Como os empregadores apenas compensam isso dando-lhe menos salário Por que não apenas pedir mais dinheiro no salário e, em seguida, fazer o que você deseja com isso (como um plano Roth IRA) e Desculpe, um estudante universitário preguiçoso e eu não tenho idéia do que está acontecendo, mas eu senti que era importante perguntar isso. Eu não gosto do argumento de que o pagamento de dinheiro é simplesmente compensado por uma redução no salário porque você não está fazendo uma comparação justa. Embora seja verdade que eles poderiam lhe dar mais dinheiro, o jogo é realmente melhor para você, porque agora que o dinheiro pode crescer livre de impostos até o desembolso. Eu gosto da idéia de investir em seu 401 (k) através do jogo, e depois investir em Roth IRAs acima e além. O crescimento isento de impostos é apenas um negócio tão doce, e muitas vezes um auto-dirigido Roth tem melhores opções de investimento do que um empregador dirigido plano 401 (k). Pelo menos isso é verdade no meu caso. Por que você pode fazer tanto Robyn Recritique Restaurante Cupons, brindes e muito mais. Como alguns já assinalaram, é bom diversificar, tanto em seus investimentos quanto em suas classificações fiscais. Na verdade, não temos idéia do que o futuro reserva, então o melhor que podemos fazer é diversificar. Outra coisa para pensar: mesmo quando você tem que pagar impostos sobre seu dinheiro, você ainda tem uma parcela que pode ser isenta de impostos. Se você e seu cônjuge estão ambos ainda vivos no reirement, você pode fazer exame da dedução padrão e da isenção pessoal. Assim, em dólares de hoje, em algum lugar em torno de 15K no rendimento tributável de um ano ainda pode ser livre de impostos. Além disso, dependendo de seus objetivos e seus valores, você pode estar interessado em doar dinheiro para caridade. Você provavelmente vai querer pelo menos alguma renda para ser capaz de amortizar suas doações de caridade contra. Então, tudo isso para dizer: mesmo se você escolher a rota Roth IRA, eu ainda sugiro contribuir pelo menos algum dinheiro para uma conta antes de impostos, como um 401 (k). Concordo com você Trent, banco todos os 401K bondade que você pode, quando a correspondência é maxed sua fora para Roth IRA terra. A maioria dos 401 (k) esquemas de correspondência são 2: 1 em que eu coloquei em 6 o empregador coloca em 3. Não a maneira que você tem. Eu acho que é benéfico fazer as duas coisas. Mesmo se o 401 (k) não oferecer uma correspondência, você ainda deve investir em ambos. You will then have a variety of money in tax-free and taxable accounts. No one knows what taxes will be when they retire. This way you are covered if they either go up or down. Rick8217s (21) point is crucial to the tax question. The point he8217s making is that your 401(k) contributions are deferred at your marginal rate, but your eventual withdrawals will be taxed at your overall rate. Your overall rate is always less than your marginal rate because our tax system is progressive. This means that when mulling over future tax rate changes, you have to compare your predicted future overall rate to your current marginal rate. If you think things will stay the same, the 401(k) is the better option. The timing of this article is perfect for me. After seven years of maxing out my 401k contirbutions, I just stopped contributing. These are my reasons: I had (perfectly valid, IMHO) cause to raid my emergency fund. So, I want to make rebuilding my emergency fund a priority. I have a goal of starting my own business over the next few years. But it will obviously require a good amount of savings to allow for this. My mortgage interest already helps my tax bracket to some extent. Once I get my emergency fund in order, I think I will be able to select better investment choices than the mutual funds available within my 401k. Is this the right decision Honestly, I don8217t know. But I will continue maxing out my Roth IRA contributions. And I will continue to save the 8220401k money8221. I will just pay taxes on it first, and then invest it on my own. Woah, what company matches 2-to-1 to a 401(k) Mine contributes 50 of up to 6 of my salary (so if I contribute 6, the company puts in 3), which I believe is pretty typical. Mike Sty (17) 8211 Most companies that offer a 401(k) match offer the same match to everyone. You can choose to take advantage of it or not, but there8217s usually no option to have them add that money to your salary instead of your 401(k). So if you choose not to contribute to your 401(k) enough to get the full match, you are passing up extra money that the company is willing to give you. One complicating wrinkle (and one I do not hear talked about much)8230. Since Traditional IRA401k is tax deferred and Roth is not, try to split up your conservative investments into the tax deferred account and the aggressive stuff in the Roth. The aggressivehigher returns in the Roth will be tax free while the conservative investments grow at a slower pace. As long as your time horizon is long enough (to take advantage of the differences in returns of conservative vs aggressive), this is a great tax minimization strategy, provided you are investing in both a 401k and Roth. Maybe it just me or my life style, however I have not had a 401k option for the last 10 years. Part was because my employers did not offer them, right now my husband and I at both of our jobs do not have a 401k option. So that being said, Roth is all I know along with a few other accounts. I make my decision based on the investment options in the 401(k). I was lucky, I worked for the federal government which has a great version of the 401(k) called the TSP, so I did both that and a Roth. But my younger brother recently asked for my advice whether to join the 401(k) at his job or stick with the Roth IRA that he already had. I looked at the investment options at his job8217s 401(k), they were terrible. Actively managed funds with expense ratios over 1. I told him only to contribute to the 401(k) up to the match and continue with his Roth IRA as his main retirement account. The correct answer is both. I used to contribute 8 of my 401k at my old job, but I reduced that down to the max contribution (4) because the menu of options we had was so terrible (basically index funds with managed fees, around 1-2). I put that extra money into the Roth (which I max out every year). Now my new job has better options, so I8217m back at 8 and still maxing the Roth. Sometimes you need to pay attention to how good the options are in the plan before contributing too much. Marcin I dont think Trent made a mistake. Your company probably has a 50 match but there are some companies (most schools included) who actually put in double the amount you do (a 200 match). Kacie yes, your husband can open a regular 401k at any time, as long as his employer offers it. Mike Sty Once you have a job, your salary is the same whether you take advantage of the 401k match or not. Most companies offer this across the board and its not negotiable. Even if it was, you are limited to only 5000 in a Roth, which isnt really enough to save for retirement. I do a mix of both, although I do like the Roth because you can withdraw your contributions at any time. This will allow you to retire early without filling out any paperwork for the SEPP plan. Even if your investment options are terrible, you arent going to find anything anywhere else that gets an automatic 50 return. Eric Hollins says: I created this wikipedia page because I couldn8217t find anything like it anywhere else. I think this is in a pretty clear format that compares the 4 main retirement vehicles. The 401(k) at my work offers NO employer contributions. All of the Investment options in the 401(k) have atleast 5 Sales Charge and additional expense ratio of 0.5 or higher. In such a scenario what should I do, Should I still continue to invest in 401(k) or should I invest only in ROTH IRA This probably doesn8217t apply to a lot of people on this website, but one point in favor of the 401K is that you usually have very little paperwork to do, you do it at work and the money comes automatically out before you see it. In short, it is very easy. There are so many (especially younger) employees at my workplace who don8217t contribute to the 401K because they are 8220going to start a Roth IRA8221. But, they never get around to it. So instead of having a 401K that may or may not be worse than a Roth IRA, they have nothing. Sometimes convenience is reason enough to do something. I like the Roth 401(k) since it gives me the best of all worlds: 1) employer match is pre-tax, which diversifies for tax purposes 8211 my money is post tax and will not be taxed again when I withdraw, but the employer funds will be taxed later 2) greater contribution limits than an IRA But I8217m 33 and have a long time until retirement. About the only downside to the 401(k) plan at my work is they don8217t have Vanguard funds available. My employer offers a 401(k) plan, but with no matching. Is it worth it for me to contribute I max out my Roth IRA every year, and have my other savings in accounts that are not tax-deferred. jb (25) 8220I have a goal of starting my own business over the next few years. But it will obviously require a good amount of savings to allow for this.8221 In this situation, a Roth is better for you. If you take money out of a 401(k) or traditional IRA early, you not only pay income tax on it, but an early withdrawal penalty. With a Roth, in most circumstances, you can withdraw your basis (the amount you8217ve contributed) without paying income tax or penalties, since the money was already taxed. In your case, the money will be there if you need it to start your business, but if you don8217t need it you can just let it keep growing with tax free earnings. Trent: Thanks for posting this 8211 I had been under the impression that the total combined employeeemployer contribution was the same as the individual cap 8211 we8217ll be adding more to my husbands 401k as a result. (I8217m in a pension plan so I can8217t do it, but his employer does have a 2 to 1 match, I8217ll have to check the limits) I agree with Dave who said both Roth 401k AND Roth IRA My company recently added the Roth 401k option and I jumped at it I would rather pay taxes on the 200 I put in each paycheck than pay taxes on the thousands of dollars that I will withdraw when I am retired My husband8217s wedding gift was opening a Roth IRA (which is now worth less than the amount I put in it, due to the market, but we have plenty of time for that to grow back) Trent, Thanks for the article I8217ve enjoyed reading about your journey I just had this discussion over at my blog as well. I8217ve already met the amount I need to put in to my Roth 401k to get the max. employer match (not much). I was debating on whether to: stop contributions entirely and save the money elsewhere, switch to traditional 401k contributions, or do nothing at all. I decided to stick with the Roth 401k for two reasons. One, it8217s the easiest thing to do. I don8217t have to change anything. Two, I also think tax rates have got to go up in the long term. Thanks for these very helpful details I think in the quest to work, especially for those that are running their own businesses or trying to start new careers, it8217s easy to forget about the distant future as we try to live in the moment and take care of important tasks associated with just staying afloat in 8220the now8221 (especially with the current U. S. economy). It8217s great to see all these pros and cons laid out on paper, as I think it8217s pretty easy to get confused when talking to a financial advisor many have their own strong opinions about which of these plans is better (as well they should if they are advising) and we don8217t always necessarily get the picture from the standpoint of someone else like us that is investing and saving. It8217s always helpful to see for ourselves what the reality is in terms we can understand before making decisions. Thanks a lot again for these important details Great summary of the issues. One point to consider is that some 401k plans offer BETTER options than an individual investor can achieve on their own. This is done by offering low cost funds to begin with and aggregating assets of contributors to reach share classes with LOWER expense ratios (think Vanguard Admiral share classes) than individuals can achieve through IRA accounts. Also keep in mind the reason for employer matching. Sometimes it is because they are just nice folks. Usually it is to encourage greater participation thereby making full contributions possible for the highly compensated individuals at the firm. Participation must be balanced for everyone to contribute fully. (This is a vast oversimplification of complex IRS rules). While we8217re discussing 401(k) plans and their poor options, we should acknowledge that some 401(k)s are downright awful. I8217ve got one and so does my husband. They8217re group annuity contracts. Heard of them Probably not. But, if your 401(k) manager is an insurance company and your 8220mutual funds8221 are sold to you in 8220units8221 with a 8220unit price8221 that is nowhere near the NAV that you can look up on any stock quote site, guess what you8217ve got Yep. You8217re invested in a group annuity contract that is backed by mutual funds. The fees are nearly impossible to find because insurance fee disclosures are state-regulated, but a typical number would be 1.3 on top of the mutual fund fees. Further, consider that your 401(k) is locked to your job. The ONLY way to move that money to a better-performing investment company is to QUIT YOUR JOB. Quitting will allow you to move it to a rollover IRA with the investment company of your choice. Also, if your company offers a lousy 401(k), and you8217re in a high tax bracket and want tax-free contributions, you8217re out of luck. You8217re considered 8220covered by a retirement plan8221 and a tax-deductible IRA is only an option for those who don8217t end up in a high tax bracket. Mike Taylor says: For people working in education and other non-profit sectors, a 403(b) is roughly equivalent to a 401(k) in terms of the advice given above. But I haven8217t seen mention of one aspect that some people may find important8230 Taking funds out of a 401(k) before retirement often comes with a penalty (except for rare instances), but if I recall correctly you can take your contributions from a Roth IRA at any time without penalty, you just can8217t touch the gains until retirement. So8230while having a separate emergency fund is always a great idea, this could serve as a secondary buffer in case of something truly tragic and expensive. As I work for a public school system, I do not have a 401(k) option, but a 403(b) option. Regarding tax advantages for marriedfiling jointly under 56K (which is my situation for the next few years): does anyone know if the 403(b) carries those same tax advantages 401(k) and 403(b) plans are virtually interchangeable when talking about tax law, so you should qualify for the retirement savings credit if that is what you8217re referring to. Wonderful discussion, and I have to agree with what8217s already been said: if you are able to contribute a substantial amount towards your retirement, the question shouldn8217t be which retirement account to choose, but rather, how much to put into each one, and where to invest that amount. Answering those questions starts to get much more complicated and dependent on individual situations, though, and leads to confusion. I8217m with K regarding Roth IRAs the ability to withdraw the principle early without penalty is a big plus in my book. The ability of a Roth to thus serve as a last-resort emergency fund as well as a source of early retirement money increase its value even more. (I suppose this is not an unmitigated positive, though, as there are some people who will withdraw from a Roth without having a really good reason to do so. For people who can resist such temptation, though, it8217s another point in Roth8217s corner.) As for taxes (and the implications thereof), the simple fact is that with the National debt climbing as high as it is, something is going to give if the U. S. is to avoid going into default. The only options besides higher taxes are (1) dramatic across the board cuts in spending (which might work, but getting politicians to agree what to cut and doing so by enough to make a real difference, is going to require a vastly different political environment than I8217ve seen in my adult life) or (2) allowing inflation to increase dramatically, eroding the real value of our current debt (and also the real value of our savings, investments, and salaries). Ultimately, it8217ll probably take a mix of all three in order to get the national debt to a more manageable level, but the point remains: there8217s almost no chance the post-Reagan tax rates we8217re currently experiencing will remain this low, so investing in a Roth IRA401(k) is definitely a smart idea. Although8230 As Stacey mentioned, there is the possibility that our tax system could be converted to a 8216fair tax8217 where the bulk of taxes would be collected through a national sales tax. In this case, unless there is some kind of compensation or allowance included in the new tax law, Roth holders will be screwed: they8217ll have been taxed on the income that went into the Roth, and taxed again on the spending when the money comes out. (401(k) or Traditional IRA holders will benefit, though, in having completely dodged the income tax bullet, even if they still have to pay the new national sales tax as they withdraw their savings.) However, while such plans do have some good points (easier to administer, decreases consumption, no disincentives to saving or investing), there are problems that (in my opinion) will keep it from gaining traction, the biggest being the regressive nature of the tax. (If I, a person making half my salary, and a person making twice my salary all spend the same amount in a given year, we8217ll all pay the same amount in taxes, but the person who makes twice my salary will have paid a much smaller portion of his income than me, and I will have paid a smaller portion than the person making half my salary.) There are ways to remedy this situation (like per capita checks sent out on a quarterly basis), but without a truly comprehensive plan, I don8217t see this as an issue in the near future. I just cough up 9 percent to the 401k Gods every paycheck in the riskiest Vanguard fund they offer. I am only 25 so I figure what the heck. Also, my employer does not match the 401k contributions because I get a GREAT pension. But, when I get married, we are going to start maxing out a Roth. Thanks for explaining that stuff in 8220dummy8221 terms. I have contributed to a 401k for years but I never really have known what I am doing, so that was nice of you. We8217ve always maxed out our 401k and Roth IRAs so I8217m not sure. But if I had to pick I8217d do match, then Roth IRA, then back to 401k. Even though I live in a high COL area that pays higher salaries overall, I8217m no better off but still face a higher tax bracket. Right now, it8217s critical that I minimize my current tax burden. That points straight to 401(k). But I8217m also planning for contingencies with a Roth IRA. Not contributing to the max, but probably 8020. As things change, I8217ll reevaluate. Thanks, Kevin. I wish I had known that a couple of years ago :)Exclusive Method of Trading Options Gives You. quotAn Almost Risk-Free Way to Make a CEO-Level Income in the Stock Market Regardless Of Economic Conditions and Regardless of Whether The Market Goes Up, Down, or Sidewaysquot Listen, if youre like most people today, youre probably: Tired of making next to nothing on your investments. Tired of seeing your retirement portfolio (and plans) slowly slip away. Tired of getting the same old dismal returns in the market. Tired of getting bummed out every time you look at your 401k. Does any of this sound familiar If so, read the rest of this letter to discover how you can easily turn all that around using the Power and Leverage of safe, low-risk, high-return options to Make a Consistent Monthly Income in the Market . From: David Vallieres and Tim Warren Monday 5:30 AM Whether youre a seasoned trader or a complete beginner, youre about to discover options are not nearly as complicated or as risky as you have been led to believe. The truth is, most people, even many experienced stock brokers, just dont understand options. You see, stocks have been around for literally hundreds of years, but listed options are relatively new. They are just a little over 40 years old. So its understandable that most people dont know how they work. Thats where I come in. You see, I have spent the last 23 years studying, learning, planning, testing and perfecting a simple system for trading options. That system - allows my family and I to live a lifestyle most people can only dream of. (NOTE: The course contains FULL SIZE videos so you can see everything clearly.) And Now, Im Here to Share That System With You First, lets make sure you understand what options are. You may already know, but just in case you donrsquot, let me give you a simple example to illustrate how options work: Letrsquos say you see an ad in your local paper for a pair of blue jeans. Your local clothing store is running a sale on them, and for next three days they are only 30. However, by the time you make it to the store they are all sold out of your size. To keep you as a happy customer, the store clerk offers you a rain check. It entitles you to purchase a pair of the jeans at the sale price - 30 anytime within the next 60 days. That rain check is just like an option. You have the right - but not the obligation - to buy the blue jeans at the guaranteed price of 30 any time before the expiration date in 60 days. The only difference is, with an option they charge you a small premium for that right. What Makes Options So Special Well, lets take a look at the difference between buying a share of stock and buying an option. Lets say you get a hot tip. Your buddy tells you about a stock thats just getting ready to take off. You know that everything your buddy touches turns to gold, so you decide to invest 10,000 in the stock. Lets assume the stock is priced at 100 per share, so you end up with 100 shares of the stock. Now, lets say your buddy is right and the stock takes off. It increases in value by fifty percent. Não é ruim. Your stock went up by 50 a share. So if you decide to sell your 100 shares, youll profit 5000 (50 X 100 shares). Now, lets go back to the beginning and consider what would have happened if you had invested your 10,000 into options to buy the stock, rather than investing in the stock itself. Lets assume you could purchase an option to buy a share of the same hot stock for 5 each (you are paying a 5 quotpremiumquot for the right - but not the obligation - to buy the stock). So now, your same 10,000 would get you the option on 2000 shares of stock. Once again, well say your buddy knew what he was talking about and the stock went up by fifty percent. So, once again you made a killing. However, because were dealing with options, we have to calculate your profits a little differently this time. We have to figure in the price of the premium you paid for the option. So instead of making a profit of 50 on each share, you only made 45 on each option. But wait a minute, since you were able to purchase the option on 2000 shares of stock, your profit jumps to 90,000 Yes, Your Profit Jumps to 90,000 . Now that illustrates the Power and Leverage you get with options. And get this, thats just one of the reasons options have become increasingly popular recently. There are many more including: You get unlimited profit potential . five-figure monthly incomes are realistically within reach You can easily limit your risk and make losses virtually nonexistent You get the ability to profit whether the market is falling or rising (In fact, smart investors can make oodles of cash even during a market crash) You can quickly change your strategy mid-stream, to actually make money off a losing trade You can easily diversify your portfolio. options are readily available on stocks, indexes, futures and currencies. If you get it wrong. you can lose money just as fast as you can make it with options So dont think you can run right out and start making a ton of money with options. Its critical that you have a good understanding of the options market before you dive in. You need to find a good mentor. Someone thats been extremely successful trading options. Someone with a proven system. Someone that can take you by the hand and walk you step-by-step through the entire process. Thats where I come in. But mdash that also brings up a good point: Unlike many people who teach stocks and options, I am not a former quotmarket-makerquot or specialist or a licensed professional in the financial industry. I am a retail investor just like you, who after 23 years of testing and tweaking found a way to be successful and profitable trading stocks and options as a business. A successful business I run from home . And, the business methods I use are the same ones used by professional hedge fund managers and market professionals who rarely, if ever, talk about their strategies. So Why On Earth Would I Share My Secrets With You 1) First, in this business, competition is good. The markets are huge and worldwide. You cant have too many traders. In fact, the more traders you have, the more money you can make and the more liquid the market becomes. You actually want more people in the market. 2) Second, I want to give back. This business has been very good to me. Ive been fortunate enough to use it to build a lifestyle for my family that allows us the freedom to go wherever we want and do pretty much whatever we want. As long as Ive got my laptop and an Internet connection, Im all set. Just imagine what it would be like for you to be able to give your family the same freedom . 3) Third, I love to teach. I have been teaching people how to use the Internet to start a business since 1999. Thousands of people have learned how to make their living online with my courses, and thats been very rewarding for me. Now, it can be very rewarding for you too. You see, one thing Ive learned in all my years of teaching is the very best way for you to learn is to have me show you how to do something - step-by-step - before you attempt it yourself. Thats why throughout my quotExpert Option Tradingquot course you get to. Look Over My Shoulder as I Make My Own Trades Thats right. You actually get to watch as I make my daily trades and listen as I explain why I make the moves I do. You get to see exactly how I make money in the market . Watch and listen as I pick which options I want to buy and sell and then explain why. Look over my shoulder as I strategize about which trades to put together into a portfolio that will maximize profits and minimize risk. Watch as I manage my portfolio in less than 15 minutes a day. Follow along as I decide when to close a trade out and take my profits. You get to look over my shoulder and watch me actually make money in the market. Who else does that No one that I know of. You may be able to hire a personal trading coach that will do the same thing if youre willing to spend thousands of dollars, but Ive never seen anyone offering it. And it doesnt have to stop when youre done with the course. Just sign up for my newsletter and youll be able to continue to watch as I make trades and manage my portfolio on a daily basis. See exactly how I make my living in the market. quotThis Information is Pricelessquot I just wanted to say. I bought your course and it is great I watched all the videos in about one week and will be reviewing them again. Im hooked on this stuff I just started trading paper to try it out and hopefully build my confidence. This information is priceless whether you want to follow the strategies presented or not. Im very excited and hope that in a couple years I can do this as a business. Ive always wanted or at least loved the idea of trading as a business at home, but I didnt think it was possible. My experience was that it was a total crap shoot. But, as your course pointed out Ive been trading blind. This think or swim application is so unbelievable how you can analyze just about every possibility instantly in real time. And your strategies are so sound and logical. I love how the videos demonstrate exactly what you are teaching. Excellent A Radically Different Approach to Options Trading Look, most people approach the options market as pure speculation or worse yet, gambling. Thats why most people think the options market is too risky. In this course, youll discover how to virtually eliminate the risk and approach trading as a real business . Its simple: All businesses buy and sell something to make money. yoursquoll be buying and selling options in your business. In addition, all good businesses are managed based on numbers and ratios ndash yoursquoll discover how to do the same exact thing. Youll manage your business strictly by the numbers . This takes your emotions totally out of the picture, which in turn removes most of the risk . In fact, yoursquoll know exactly what your maximum profits are going to be BEFORE you ever place a trade. You wont have to guess or speculate ndash yoursquoll have a plan . Then - Yoursquoll simply manage your position. And - if necessary, youll make adjustments to remain profitable. Or - youll use smart risk management tactics to cut your losses. Then - youll just collect your profits at the end of the trading cycle (monthly). Thats it And the best part is. You Can Do All This In Just 15 Minutes A Day . Thats right mdash Once your trades are set up for the month, it takes less than 15 minutes a day to look over the numbers and make any adjustments necessary. You wont find a simpler business to run. And listen, this business will never change. The principles, once you learn them, are yours forever . Youll be able to hand them down to your children and grandchildren. The principles will never change because the markets never really change. New products may come on the market, but as long as the stock market is still around, the basics of this business will never change. This business is Evergreen . and the principles youre learning will be valuable for many, many years to come. And here are just a few of those principles youll be discovering: How you can use options to Generate a Steady Monthly Cash Flow . you may even decide to walk away from your day job How to manage your options business strictly by the numbers. take your emotions completely out of the picture ( this is HUGE ) Why Risk Management is the key to your success in any type of trading. and why its essential in options trading How to create and utilize ldquoRisk Profilesrdquo. visually determine a tradersquos potential profitability in one glance. The secret that 99.8 of option traders donrsquot know . how to quickly change your strategy if the stock goes against you ndash up or down. What Will Be Covered for You In The Course You will get a total of 12 modules. Each one contains several hands-on videos. Look over my shoulder and follow along as I walk you step-by-step through each topic. Heres just a small sample of things youll discover: Module 1: Introduction To Trading As A Business Description: This section introduces you to a new way of trading options mdash as a business . Emphasis is on risk management and building a portfolio of trades that can be managed strictly by the numbers. Module 2: Introduction To Trade Types and Analysis Description: This module includes a brief overview of buying and selling options using vertical spreads, double vertical spreads, bull call spreads, straddles, calendars, double calendars, and iron condors. It also includes a discussion of time value, intrinsic value, extrinsic value, and in-the-money (ITM), at-the-money (ATM), and out-of-the-money (OTM) options. In addition youll learn how to setup and use the thinkorswim platform to analyze your trades. Module 3: The Greeks - Managing By The Numbers Description: The Greeks play a critical role in your trading business. They are the numbers youll use to manage your portfolio profitably. In this module, youll gain an understanding of exactly what the Greeks are and, exactly how they impact your business. This section includes a video and a comprehensive, yet easy to read 5 page CONFIDENTIAL REPORT on how to profit from quotThe Greeksquot. Module 4 : Trade Selection And Strategy Description: In this module youll learn how to determine which positions to put on and precisely when and how to put them on. Youll also learn what charts, if any, really matter, and well take a look at the big picture behind what were doing. Module 5: Portfolio Building Description: Youll discover how to build a portfolio by putting on positions that work together. This is where many traders go wrong - they put on individual positions and do not understand how they affect their overall portfolio. Module 6: Using The TOS Platform - The Tools Of The Trade Description: ThinkorSwim (TOS), is in my opinion, the best broker and has the best trading platform available. If you had to pay separately for the types of analysis tools they give you as an account holder, it would cost you hundreds of dollars a month in fees - with TOS theyre totally free. I take you inside the TOS platform and help you access the power thats available to you. (There are other software programs you can use to analyze your trades, but TOS is free when you open an account.) Module 7: Portfolio Management By The Greeks, Adjustments, VIX and More. Description: Now that youve built your portfolio, your key to success is to manage it by the numbers. You learned the Greeks, now its time to put them into action. When youve completed this section youll be able to look at the numbers and quickly determine what they mean and what to do with them, if anything. Module 8: The Art Of Adjustments - The Secret Key Description: What happens when your numbers dont look good This is where 99 of all traders get killed. they have no clue what to do when a position goes against them. So they just take the loss. Its too bad because most trades can be saved. They can be made profitable by adjusting. Imagine making one small change to your position and increasing your odds of making a profit by 80 Thats what adjusting can do for you Adjustments are the missing link in option trading that almost no one teaches. Module 9: Closing Positions Description: Discover how and when to close your positions for maximum profits. The risks of holding positions into expiration week. When and how to buy short-term insurance to protect your profits. How to close positions and get free trades left over mdash that have a chance of DOUBLING your profits. Module 10: The Big Picture - Technical Analysis Description: Part 1 - In this section youll find out which key analysis tools are critical in helping you determine the probabilities of market direction. Well discuss why the market moves up and down in a seemingly random fashion, and youll get a historical perspective on market movements going back to 1900. Youll end up with a realistic plan of attack for determining future market direction based on factual evidence. In Part 2, youll learn about short-term indicators that can help you to better time your trades. And youll discover an indicator that predicts short-term and opening market direction with an amazing degree of accuracy. Its right nearly 95 of the time Module 11: Advanced Techniques And Explosive Wealth Building Strategies Description: This should actually be titled as a bonus section. It not only contains the most powerful options strategies on the planet, it also introduces you to a couple of Super High-Powered stock trading strategies . Explosive Strategy 1: Using this one method a 14,000 trade turned into a 75,000 profit in just 8 months. The most money at risk Just 650. That was the total amount that was at risk when this position was initiated and NO more money was ever put into the position. It has an amazing profitloss ratio . It does require a longer time frame - 6 to 8 months, but its not uncommon for these trades to create the type of profits you can brag about . Want to make a killing in the market It doesnt get any better than this. Explosive Strategy 2: Another method I call Flipping Stocks lets you buy stocks cheaper than anyone else, and if the market does not cooperate - you get paid lots of money for waiting until it does This is for bigger players with more capital. but when you have 15k or more to put to work, these longer term trades will generate explosive profits for you . Explosive Strategy 3: With this new strategy you have unlimited upside or downside potential and only about 50 at risk. This strategy is extremely powerful and one of the biggest real secrets that I know of. Ive never seen anyone else discuss this tactic. Wait until you see the power of this strategy. You can make 1000s with a total risk of about 50. This is as close as it gets to a free-lunch on Wall Street This is the perfect low-risk strategy for playing earnings reports, takeover news, or any stock you think will move big in either direction. Explosive Strategy 4: If you want to be more active in stocks but hate the risk, youll love this strategy. With it, you can day trade without the risk normally associated with day trading. You can also set it up as a semi-automated trading system. Its another very powerful low risk, high earning strategy for more active participants (requires capital of 25,000 due to pattern day trading regulations). Explosive Strategy 5: If you like the idea of the monthly income trades but you were wondering how to turbo charge them to make a fortune, then you will love THIS strategy. Instead of 1000-2000 a month you can start generating 5,000 to 40,000 a month after learning this. This last strategy is the icing on the cake - the peak moment in all your hard study. It will be worth 100 times what you paid for this course . maybe even more. Why didnt I reveal this to you before Because you wouldnt be able to use this strategy without the foundation laid out in Modules 0 to 10. Everything youve learned thus far has been leading up to this. AND Explosive Strategy 4. There you have it. those are some highlights from what youll be learning in the course - I guarantee you wont find anyone else teaching all this. The course consists of 42 videos delivered to you on DVD. I made the course incredibly affordable to make sure you could learn all this without having to stress over the price. I have paid as much as 3,000 for one course and 5,000 for another - you will get much more from this course than both of those combined. Theres even one online trading course that charges 7,500 for online access just to learn the basics of options. Bonus 1 M odule 12-1 : Inside Days This is the One Trading Secret That Could Finally Make You Rich Im not going to make any promises about how much money youll make using this trading strategy (that very few people know about and even fewer people understand). Irsquoll only say that it could make you rich. How much money you make using it depends entirely on you This one, simple, easy to learn strategy for trading stocks, options, futures, forex or any other liquid investment is, in my opinion, one of the greatest trading strategies anyone can use to start making money in the markets . So What Are Inside Days An Inside Day is a day which has a lower high and a higher low than the previous day. Find out how to exploit these days for profit now Bonus 2 M odule 12-2. Extreme Trading Description: Watch this introduction to extreme Day Trading, and get ready for some really fast action excitement and profits Watch me buy and trade the extremes and learn how you can do the same while you watch Bonus 3 FREE IMMEDIATE ACCESS : GET STARTED RIGHT AWAY Your course on DVD will take a few days to arrive, but you wont have to wait until it does. Youll get immediate online access to the entire course so you can get started right away . Well be charging 67 for that in the future because of the bandwidth required to view all 42 videos online, but you get it for free if you order today. Heres What a Few of Our Members Are Saying comments used with permission quotIm Very Impressed with Your Videosquot I have to say that youre a very good teacher I had absolutely no knowledge about options, so I followed your advice and went to the optionseducation. org web site to get some basics before beginning your course. Im very impressed with your videos and the helpful info and tips youre giving. Im through module 4 and Im starting to get a good grasp of it. -) Ill let you know how it goes quotHow Come It Was Hidden From Me For So Longquot You are a good guy (what an understatement). I just reviewed the first part of strategy 1 in module 11. I cant believe I havent read about it in any of the trading books (and I have read many). This is so simple. How come it was hidden from me for so long Anyway, thanks for doing a great service for the trading community. God Bless. quotYour System Demystifies the Options Gamequot Its Dave Ward here we swapped a few emails lately through your site. Why am I writing Well Ive been thinking about your course a lot lately (in fact all the time) and how fantastic it is. Since I got your videos I havent stopped thinking about the massive potential for ordinary guys like me to make money with options. I finish work and Im reviewing your videos all night, Im reading stuff, researching, talking to people about it. I dont think Ive ever been this excited about any other opportunity I have come across. Your system demystifies the options game to a degree where almost anyone with good work ethic and willingness to learn can succeed. Im positive that your course could have a positive impact on thousands of not tens of thousands of people who are struggling both on and off the internet to make money just like me. I know you have a massive list and already partner with some of the big names in network in network marketing but if you are looking for someone down in the trenches so to speak to partner with to further get the message out about your course through and affiliate program or whatever I would really love to be involved. I hope you dont mind me being so forward Ive never written to anyone like this before but I have a good feeling about your course. I also know that that if you dont ask you dont get and that great opportunities dont come around very often so you need to grab them with both hands if they do. (Additional Testimonials Below ) You get 42 videos shipped to you on DVD so you can easily watch them at home on your computer You get the Core Training Program - 11 Modules that walk you step-by-step through the entire quotTrading as a Businessquot system You get the bonus Module which includes two High-Powered advanced strategies - quotInside Daysquot and quotExtreme Tradingquot You get immediate online access so you can get started right away You get a 7 page course guide and a 5 page report on the quotGreeksquot in PDF format Ok. so by now Im sure you realize just how powerful the quotExpert Option Tradingquot system is, and how it can dramatically change your life with all the additional income it will create for you . But, now youre probably wondering. How Much Is This Going To Set You Back Well, the real question you should be asking is how much is it worth to have an expert with over 23 years of stock and options trading experience take you by the hand and literally walk you step-by-step through the entire Expert Option Trading system Someone whos currently using the same system to generate an income that most people only dream about. Thats exactly what Ill do for you. What would it be worth for you to be able to look over my shoulder while I make my own trades The answer should be obvious. Its quotPricelessquot Remember, I reveal absolutely everything . All the tips, tricks, and strategies that allow me to make more money every month than many people make in a FULL year Heres the bottom line. Considering Im handing you the exact formula I use to generate a full-time yearly income every month . this system is easily worth 1997. And considering similar option trading courses are priced between 5,000 and 10,000, even 1997 would be a bargain. But dont worry, Im not going to charge you anywhere near that much. After much consideration, Ive decided to price the course very fairly at only 497. However, in light of the economy right now I wanted to make it affordable to everyone. So if you grab a copy today . You Get a Massive Discount For a VERY limited time only, you can literally steal the entire course from me at an almost insane 1997 . 497 . 197 But grab your copy now. this special price is only temporary and will be increased to 497 soon. possibly even before you get done reading this letter. And dont worry. Theres absolutely zero risk on your part because. Im shouldering all the risk (as I should) with a. 100 Iron Clad Unconditional Money-Back Guarantee. Go through the entire quotExpert Option Tradingquot system . Watch the videos, complete the training. and if at any time within 60 days youre not thoroughly convinced the course is worth twice what you paid for it, just send it back. Está certo. Take 60 days to check it out and, if for any reason. or no reason at all. youre not TOTALLY satisfied with the income producing power of these revolutionary strategies . send it back and Ill quickly refund every penny of your investment. It truly is risk free. Assim. If youd like a proven system capable of earning you a full-time income from home then take action right now . Get your hands on this program today. YES - Dave, I want you to give me the exact strategies and techniques I need to start making my living trading stock options. Send me the Expert Option Trading System: Trading as a Business Training Program A Total Value of 1,997 for ONLY 197.00 I understand I will receive 4 2 videos delivered to my door on DVD. I will also receive immediate online access to all 4 2 videos so I can get started right away . I also understand my investment is backed by your Iron-Clad 60-Day No Questions Asked Money Back Guarantee . P. S. - Get instant access now before the price goes up. Remember, if you order today youll get the entire course for only 197. If you wait you may have to pay 497. P. P. S. - Dont forget, You can try it risk-free . With my 60-Day No Questions Asked Money Back Guarantee . all the risk is on me. quotI Found This Program Phenomenalquot After reviewing the Course on DVD several times I found this program PHENOMENAL. I went LIVE on thinkorswim platform right away and I started to make good money already with small losses. I am doing spreads and adjustments and I am very excited. I thank you very very much. Sincerely, Tadeusz Przechodzki quotI Have Been Trading. And Making Moneyquot Yes, I have been trading. and making money I was aware of many of these types of trades, but was not very good at adjustments - until now. There are so many trading secrets, and you do a GREAT job teaching them. Thank you for sharing this awesome course and improving my trading. now I trade with confidence quotIve Been Very Un-successful in Trading Until I Found Your Videosquot Its coming along very well. I established an account with TDAmeritrade sometime ago, so I could trade on a daily basis. I already had the software but Ive been very un-successful in trading until I found your videos. I think your videos are really good for people like myself, Ive been looking for someone to show me the secrets to trading. My goal is to establish a second monthly income and build wealth. Im extremely excited about the videos. Thanks, James Sims quotSafe Reliable Way to Earn a Monthly Incomequot I have been trying to do stocks, forex, and options over the last 10 years or so and never found a safe reliable way to earn a monthly income from the money markets. That is until now This information is so logical it blows me away. Thanks for awakening my dream (the one that got crushed by the FX markets). Best Regards Kevin. R. Davies quotMoney Very Well Spentquot I appreciate these emails, I think they are great. This is a wonderful program. Money very well spent. I have been studying options for 7 months now and this is giving me far more information than anything else I have done. quotI Cant Believe What I Have Been Missingquot Tim, Thanks for the msg. I cant believe what I have been missing all this time. Makes me ill to think of all the money I have let slip through my fingers. Keep in touch, and Thank You. quotWhat a Great Systemquot What a great system i cant belive it. It is in front of you and you just cant see it. Thank you soo much, this will be a lot of fun after all my losses I had. Great work thank you so much. quotYour Program Is The Bestquot The videos are great. I invested in all types of books went to seminars on stocks and options and not one them ever made it so simple to invest in options. For years I have been looking on how to invest properly in the market like the big boys who constantly make money in all markets. The thing that is most mind boggling is your program is the best and I didnt have to pay 5,000 to get the information. I just want thank you for having an awesome product that didnt cost an arm and a leg and a few other body parts to obtain knowledge on trading options. Thank you, Ron Richardson quotLearned a LOT and Really Enjoyed Itquot I just wanted to say how much we enjoyed and learned from your videos. I shared this with my Father who is a retired M. I.T. mathematician and an active trader. We both learned a LOT and really enjoyed it. I have read over 100 books on trading and options and never learned as much as I did in your lessons. Best Regards, Jeff amp David Assael :) Los Angeles, CA Hi, I am extremely happy with your product. It is incredible value, something I did not get from other providers after speding upwards of 30,000 quotOver 1700 in Less Than a Dayquot By the way, purchased a 4 day option with AAPL at 379 got out at 388 (I know risky move, on a four day option) made over 1700 in less than a day. I know that this is not the norm, but definitely now see the value of Options trading. Once again, Thanks Richard Maciel quotI Feel More Confidentquot Hi. Ive really been enjoying the Expert Option Trading course. I am learning so much, and its gotten me excited about trading in the market again. The only difference is this time I feel more confident. quotThese Videos Are Brilliantquot I was unsure in the beginning but I got to say that these videos are brilliant. Best regards, Lorenz Sommerer quotExplanation of His System is Awesomequot Thanks for the follow up. Yes, Ive been using Thinkorswim for awhile now. Man, Daves explanation of of his system is awesome. Im learning alot. Again, Thanks Tim for checking up on me, Kimmakone Siharath quotService is Greatquot My videos arrived yesterday That was fast and am very happy. This quick service helps me trust you and Dave. When buying on-line I am always a bit leary but so far I am very happy with your products and service is great. Thanks, Randy Scheffel quotYour Customer Service is as Great as Your Coursequot Thanks a lot for your help and support and I must sat that your customer service is as great as your course. I sincerely appreciate. All the Best, and a Warm Greeting from a Remote Island, Thierry Pierre copy ExpertOptionTrading All rights reserved U. S. Government Required Disclaimer - Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the options markets. Não comércio com dinheiro que você não pode perder. This web site is neither a solicitation nor an offer to BuySell options. No representation is being made that any information you receive will or is likely to achieve profits or losses similar to those discussed on this web site The past performance of any trading system or methodology is not necessarily indicative of future results. Use o senso comum. This site and all contents are for educational purposes only. Por favor, obtenha o conselho de um consultor financeiro competente antes de investir seu dinheiro em qualquer instrumento financeiro. Additional Disclaimer: I strongly recommend that you consult with a licensed financial professional or therapist before using any information provided on this web site Any market data or commentary used on this page is for illustrative, educational, and creative expression purposes only. Although it may provide information relating to investment ideas and trading as a business, visual ideas or opportunities to buy or sell securities or options, you should not construe anything on this page as legal, tax, investment, financial or any other type of advice. If you do, its your own fault. Nothing contained on this page constitutes a solicitation, recommendation, promotion, endorsement, push or offer to buy or sell any security by anyone involved with this site Copyright 2010 by Expert Option Trading All rights reservedComparing The Most Popular Solo 401k Options Ive been doing my research over the last few months on the best solo 401k providers for small businesses and side hustlers like myself. Ive shared in the past the best options for saving for retirement with a side income. and Ive leveraged a SEP IRA in the past. However, as the side business income has grown, a solo 401k is a better option for sheltering more money for retirement tax free today. One of the big reasons Ive opted for a SEP IRA in the past is that its very easy to setup and my income wasnt really high enough to justify a solo 401k. Today, however, Im willing to accept a little more paperwork to save a lot more in taxes. Why A Solo 401k You might be asking why Im considering a solo 401k versus a SEP IRA or other self employed retirement savings options. Well, it all comes down to circumstance and how much you can save. Lets look at two scenarios that are similar to mine. First, in the past, I only saved in a SEP IRA because my income was lower and I was still maxing out my 401k at work, so I didnt need any additional employee contributions. With both a SEP and Solo 401k, on 30,000 of income, the employer contribution is 5,576.11. Since I was already doing the 18,000 at my primary employer, that amount didnt make a difference. However, fast forward to today, the business makes much more income, and my wife is now working for the business. As such, it can make a huge difference in savings and lowering our taxes. Lets assume that the business is going to make 100,000 this year. That means that the business can contribute 18,587.05 to both my 401k and my wifes 401k. Plus, my wife can contribute 18,000 of her salary to the 401k as well (since I still make my 18,000 at work). As such, the solo 401k provides much more savings options, and lower taxes today as a result. What To Look For In A Solo 401k Going through the process of shopping around for a solo 401k provider, Ive learned a lot about what to look for. There are a lot of options and nuances that you should look for when shopping for a 401k. Many of the free providers offer simple generic plans, and if those dont work for you, you can have a third party provider create a custom 401k plan for your business, which you can then take to a brokerage. Whoa, that sounds confusing, and it can be. So lets look at the major options that you need to consider when selecting a solo 401k provider. Does the 401k provider offer both Roth and Traditional contributions Does the 401k provider offer loans from the plan What types of investment options are allowed in the plan Does the provider allow rollovers into the plan and rollovers out of the plan The costs to maintain the plan The costs to invest within the plan Based on your wants and needs, there are a lot of things to compare when shopping for a solo 401k provider. Lets compare some of the main firms that offer solo 401ks. Were going to start with the 5 major firms that provide Prototype Plans. These are the free plans that the companies advertise. Fidelity Solo 401k Fidelity has been my go-to investment brokerage for years because they offer a wide variety of products and services at very low prices. In fact, its where I manage all of my investments today . So I was disappointed to learn that Fidelity doesnt offer a full service solo 401k option. Their current free solo 401k doesnt offer a Roth contribution option, and it doesnt offer 401k loans. Speaking to their representative, they told me this was to save costs on maintaining the plan since they dont charge to setup a solo 401k. However, because it is Fidelity, they do offer a full range of investment options, from commission free ETFs, to mutual funds, stocks, bonds, and more. Fidelity also offers rollovers into the plan, which can be a great strategy for doing a mega backdoor Roth IRA . The Fidelity solo 401k is cheap. There are no setup fees or annual maintenance fees. And trading within the Fidelity solo 401k is the standard 7.95 commission. Vanguard Solo 401k Vanguard is one of the most popular solo 401k options because Vanguard has always been synonymous with low fees. As such, I expected them to be a very low cost provider. Vanguard does offer Traditional and Roth options for their solo 401k, but I was surprised to learn that they do not allow rollovers into their solo 401k plans, and they dont allow loans from their plan. Vanguard only allows participants in their solo 401k to invest in Vanguard mutual funds (not even Vanguard ETFs). This limits investment options quite a bit. The fees on Vanguards solo 401k were also surprising. While they dont charge a setup or annual maintenance fee, they do charge a 20 per fund per year fee for each fund you hold inside your 401k plan. That means if you hold 5 funds inside your solo 401k, you could be paying Vanguard 100 per year. This 20 per fund per year fee is waived if youre Flagship Select or Voyager Select. This means you need to have at least 50,000 in assets with Vanguard. Charles Schwab Solo 401k Schwab is another discount brokerage that offers a prototype solo 401k plan for free. Since Schwab is continually working to improve their image in the low-cost brokerage space, I was interested to see what they offered. I was disappointed to learn that Schwab only offers traditional 401k contributions - they do not have a Roth option on their plan. They also do not offer loans under their plan. It appears that you can rollover a 401k into your Schwab solo 401k, but you cannot do an IRA rollover. Schwab does offer a lot of investing options, including Vanguard mutual funds and commission free ETFs. There are no fees to open the solo 401k, and there are no yearly maintenance fees. Inside the 401k, traditional Schwab pricing applies - 8.95 per trade, with 0 on Schwab funds and ETFs. E-Trade Solo 401k When I started looking for solo 401k options, E-Trade wasnt really on my mind. I think of them as a trading brokerage, as their fees on many products are higher than I would want. However, a friend of mine said good things about their solo 401k option, so I checked them out. And honestly, I was impressed. E-Trade offers both Traditional and Roth contributions to their solo 401k. They also allow loans under their plan. They accept rollovers of any kind into the plan, and you can even setup your plan to allow in-service rollovers out of the plan (thats rare, even for traditional 401ks). There are no setup fees involved with setting up a solo 401k at E-Trade. Inside the 401k, youre subject to the regular commissions at E-Trade, which is currently 9.99 per trade. However, they do offer a large amount of no-fee mutual funds. TD Ameritrade Solo 401k TD Ameritrade is another low cost brokerage that offers a prototype free solo 401k plan. Their plan is the hardest to dissect, but here is what we could gather. However, after discussing their plan with them, here is what we found. The TD Ameritrade solo 401k plan does allow both traditional and Roth contributions. They also allow loans from their solo 401k plan. We couldnt get a clear answer on what types of rollover options they allow into and out of their solo 401k plan. They also offer a lot of investment choices within their 401k plan. For example, they offer Vanguard ETFs commission free. There are no setup fees or annual account fees with TD Ameritrades plan. All regular trades within the 401k are subject to their standard commission with is 9.99. However, even beyond the Vanguard ETFs, they offer other ETFs commission free as well. Comparing The 5 Most Popular Solo 401k Providers Now that weve covered the five major free solo 401k providers, lets compare them in a chart side-by-side to see how their offerings compare to each other. Now you can see why the choice of solo 401k providers is so difficult. Each firm has strengths and weaknesses, and the selection depends really on what matters to you. And if none of these really excite you, you can always create your own solo 401k with a third party provider. Third Party Solo 401k Providers If you need something a little more robust that the free prototype plans these five brokerage firms offer, then you need to find a third party service that will create the plan documentation for you. Some of the common reasons why youd consider using a third-party service to create your solo 401k documentation: You want a choice in brokerage You want to invest in alternative assets such as real estate, promissory notes, tax liens, precious metals, and more. You want checkbook control over your 401k None of the prototype providers matches exactly what youre looking for with options Were not going to go in-depth on these providers because this section effectively becomes al-la-carte with what you can get and pay for. I just wanted to list some of the most popular third party plan providers that you can reference in your search for the best plan. Remember, just because you go with a third party provider also doesnt mean you cant invest at your favorite firm. For example, you can create a third party solo 401k and then have that 401k held at Fidelity. This gives you access to all of Fidelitys investment choices, but your options are created by the plan, and NOT Fidelity. This isnt an exhaustive list. There are also local firms in most areas that can create 401k plan documentation as well. Some of the most popular online providers include: Ubiquity - They offer a customizable plan starting at 215 per year My Solo 401k - They can create a custom plan for 795 plus an annual fee of 125 Accuplan - They offer a lot of services but are not transparent in pricing Conclusion If youre considering a solo 401k for your small business or side business, really consider the benefits that are important for you. For me, having a Roth option was very important because I want to be able to get tax diversification when I retire (Im looking to have a lot of pre-tax money, and having post-tax money will be nice). I also want to have low costs but a lot of investment options. As such, Im leaning towards E-Trade for my solo 401k, but Im also looking at third party providers for options and pricing. If you have a solo 401k, where did you choose to have it Why What features are most important to you Have you explored Invesco8217s Solo K Both offer full-service 401k plans and no asset minimums with access to loans, ability to rollover IRA8217s and ROTH is available. There is a 15 annual account fee, which is waived 50,000 and you do have to pay an entry fee or sales charge 8211,but there are no trading fees. So you can dollar cost average 18,000 in 1 payment or 200 equal payments of 90.00 at the same exact cost. This feature alone made it worth the sacrifices (no access to ETF or outside funds) 8211 especially since volatility has been in vogue the past 18 months. Their funds are ok to great, you need to pick and choose. For example, they have an equal weight SampP 500 fund that does the job at low fees vs some of their domestic funds. On the other hand, some of their international funds have done quite well, so you get what you pay for. Thanks for sharing this option. It looks like higher cost than ETrade, with less options for investments (and higher costs for investments). What benefits have you found with it Zero trading fees at all, so I am not punished for dollar cost averaging. Also, choice is a plus and minus. This is a retirement plan 8211 if you hold the right funds for more than 5 years, many do what you need in terms of diversification. For example, check out their Charter Fund, Diversified Dividend, Comstock Fund and Equally Weighted SampP fund8230 all beating their benchmarks 8211 over the long term and also YTD. Look abroad, their Developing Markets fund does a better job of active management. Lipped and Morningstar agree. Lipper not Lipped. BTW, if you can get R shares, there is no commission to pay. I do agree that if you want choice as in the option to buy individual stocks and ETF8217s8230 Invesco is not the plan. But it is a robust deal. THANK YOU FOR THIS POST Happy Thanksgiving Does any one of the highlighted Solo 401ks offer 1) after tax contributions (non-Roth) in order to take advantage of the Mega Back Door Roth, and 2) ability to roll over a Traditional IRA into the 401K in order to take advantage of the regular Back Door Roth. Obrigado. Sim. I believe that Etrade allows you to allow both when you setup your plan. Dillon Paul says Thanks for the post. A few thoughts and questions. Does the Fidelity account allow free trades of the iShare Core ETFs as I currently do with my brokerage account Can you just rollover pretax contributions into a Roth account and therefore effectively perform Roth contributions that way, since they do allow rollovers I wonder which ones have account closure fees in the event that you don8217t like the plan. Dillon Paul says Sorry, I just in your post above that Fidelity does offer commission free ETFs in this account, but it is unclear to me still whether rollovers can be made from the account to a Roth. Fidelity doesn8217t offer a Roth option. I believe you can at Etrade, but confirm with the company. Thanks for this advice. Great article. I currently have a solo 401k and have the funds held at a local bank. I want to invest both traditional and roth contributions in those accounts into a brokerage account for a few brokerages (optionhouse, schwab, td ameritrade) so I can take advantage of each brokerage8217s competitive advantage and range of available investments. What type of account would I open at each brokerage to get this done I see each show different types of accounts (brokerage, roth, traditional, and rollover) that can be open. I am unsure of the differences between each, and more importantly, how to get the funds from my existing solo 401k bank accounts to these new accounts. Would you be able to clarify or shed some light on this Thanks You need to open a solo 401k account at whatever firm you choose. You can then rollover your 401k to your new provider. Most firms don8217t allow you to do it online (I8217ve yet to see it 8211 not saying it doesn8217t exist). Which ever firm you choose, give them a call and they should be able to handle the logistics for you as well. Pulled the trigger on TD Ameritrade, they seem have all the benefits I8217m looking for. Access to Vanguard ETFs for free Ability to rollover from employer later on. Loan Options 0 Maintenance fee