You’re a good steward of your money and save 10-20 percent annually in your employer provided 401k. Your employer matches a percentage of your contribution, and voilà, you’ve made money. Imagine doing the right thing all along, saving all that money, but not being able to touch it. Your car breaks down and the leaky roof on your house needs to be addressed. You need that 401k money, but can’t use any without harsh penalties. Stressed?
Both 401k alternatives are U.S. Index ETFs (Exchange Traded Funds). The ETFs use the same index to trade, the S&P 500. One is an S&P 500 ETF while the other is a double weighted S&P 500 ETF. For example, it the S&P 500 is up one percent, the double weighted fund would be up two percent. We are presenting these two ETF options so different people can have options. One is more aggressive, and one me better than the other depending on the investing time frame.
Most people who invest in a 401k do so for several reasons. Mostly, (more)