Should You Invest in Your 401(k) or Your IRA First?
The most important thing when it comes to long-term wealth accumulation is that you make consistent investments as soon as possible. The question of where to invest is a natural next inquiry, as simply placing assets in the "right" accounts can make your journey to financial freedom that much shorter.
Here, we'll look at whether it makes more sense to invest in your 401(k) or IRA first.
A good place to start is to reiterate that 401(k)s and IRAs are not investments unto themselves. They are tax-advantaged accounts that offer opportunities for investment. Usually, in a 401(k), there is a pre-determined list of funds to choose from, while in an IRA, you generally have access to most of the investment universe via stocks, bonds, ETFs, and mutual funds.
Source Fool.com
