It’s that time of the year again. Graduating med students have started their first jobs, existing residents have been promoted to a new post-graduate level, and experienced attendings are in the midst of contract renewals. As you continue working, make sure you get the pay and the benefits that you deserve. Be sure to check for these 7 things as you enter the next phase of your career:
1. Look for a salary increase and cost-of-living adjustment. Within this past year inflation has skyrocketed. The price of homes, cars, food, and other items has increased dramatically. In order to keep up with the rising cost of goods, you should receive a cost-of-living adjustment to your pay. This will help you maintain your buying power and standard-of-living over time. A cost-of-living adjustment is automatic in most jobs, but it is not always included in physician contracts. If you haven’t noticed a cost-of-living adjustment to your base pay, reach out to your human resources department to inquire about it. Be sure to negotiate that in your next contract if it is not in your current one.
2. Enroll in health insurance for yourself and your family. Health insurance is something we all need. Although we may live healthy lifestyles, we cannot predict the future. We don’t know if we’ll get sick, get in an accident, or be diagnosed with an illness that requires specialized care. In order to reduce the financial burden of these unexpected costs, we need health insurance. Health insurance can be quite expensive but, most, if not all, of the cost is usually covered by your employer. Be sure to clarify this and ensure that you’ve enrolled. If you have a spouse, children, or other family members that you support, ask about the monthly cost of adding them onto your health insurance plan. Inquire about vision and dental insurance as well. These additions tend to be quite affordable but usually require separate insurance policies that you can get through your employer.
3. Make Health Care FSA and Dependent Care FSA contributions. A Health Care FSA is a flexible spending account. Money in this account is used to pay for out-of-pocket health care expenses like the cost of prescription drugs, surgeries, fertility treatments, and doctor’s visits. While you can pay for these expenses with money from your regular checking or savings account, you may want to consider using a Health Care FSA instead. Why? Because any money you put in this account is exempt from federal, state, and FICA taxes (which could save you hundreds if not thousands of dollars each year).
A Dependent Care FSA is very similar. Instead of using the money in this account for out-of-pocket healthcare expenses, the money in a Dependent Care FSA is used to pay for childcare expenses or nursing home expenses you may have to spend on your children, aging parents, or other dependents. You can put a couple thousand dollars into a Health Care FSA each year and up to $5,000 (per household) into a Dependent Care FSA each year. Any money you contribute is protected from taxes. Just be sure to only put in the amount you will use because any unused money does not roll over to the next year.
4. Contribute a percentage of your pay to retirement accounts and see if you get a match. Another benefit to clarify is retirement. Most organizations will have a 401K (if you work for a for-profit business) or a 403b (if you work for a non-profit organization). You can contribute to these investment accounts with pre-tax dollars and stack money for your retirement over time. Doing so not only allows you to start building wealth but it also helps you to save thousands of dollars in taxes each year. The max amount you can contribute each year changes but is currently at $20,500. Some organizations also have a 457b account, which is similar to a 401K, and gives you a chance to stuff an additional $20,000 in pre-tax dollars into investment accounts each year. Using this account allows you to build even more wealth and save even more money in taxes.
Along with contributing your own money in these accounts, many organizations also offer a retirement match. This is when they incentivize you to invest money for your own retirement by giving you extra money to do so. Oftentimes, they will match what you contribute to retirement up to a certain percentage of your salary. This can result in $10,000 to $20,000 (or more) dollars each year that your organization puts inside of your own personal retirement account. This retirement match is a free benefit you may be eligible for after your first full year of working at that organization so don’t hesitate to ask about it and utilize it. It could net you thousands of extra dollars per year, expediting your ability to reach financial freedom.
5. Check for disability insurance and life insurance. Most jobs will offer long-term disability insurance. This means they will pay you a certain portion of your salary (up to a certain amount) each year, if you were to get disabled and were unable to work. This is a great benefit that is usually free for most people. Unfortunately, it may not be enough. You will likely need to take out your own independent, specialty-specific, own-occupation disability insurance that you can get through an independent insurance agent. (The benefit given by your job is nice but insufficient to meet most people expenses). Along with disability insurance, your job may also offer life insurance. This is a benefit that pays a certain amount of money to your family if you were to die. Similar to disability insurance, this benefit is often free and can be a great addition but is usually insufficient. Most people will need to purchase their own term-life insurance policy and long-term disability insurance policy through an independent insurance agent.
6. Reexamine your malpractice insurance. As a physician, lawsuits aren’t uncommon. Patients may sue for all kinds of reasons, and regardless of whether it was your fault or not, hiring an attorney to defend you can be expensive. All doctors need malpractice insurance. Thankfully, this is usually given to you by your job. Just clarify what it covers and what type of policy you have. If you have an occurrence policy (which is the most protective) then great! If you have a claims-made policy (which is less protective), make sure that they also offer you tail insurance (which will protect you against lawsuits that are filed even after you leave the organization). Unlike life insurance and disability insurance, the malpractice insurance you get from your job should be sufficient. Just be sure to clarify which type you have, what it covers, and ensure you are protected from lawsuits even after you leave the organization.
7. See if you have access to any perks (tuition assistance, mortgage assistance, or discount tickets). Some jobs offer even more perks and incentives than money and insurance. For example, if you work for a large health system that is affiliated with a university, they may offer tuition assistance for yourself and your kids. After you have worked at the organization for a set amount of time, they will pay part of the cost for you to take courses at the university. Many jobs will also pay a portion of the cost for your children if they choose to pursue a degree there. Other jobs have even offered mortgage reimbursement. This is when they pay up to 10% of the cost of a mortgage for physicians who chose to join the organization and stay in the area for a certain number of years. Some jobs may not have the funds to do tuition assistance or mortgage assistance but may be able to offer other perks such as reduced costs for attorney fees to help you set up a living will or trust fund for your family. Others may even offer discount tickets for community events, concerts, and professional sports in your area. Ask your human resources department which perks you may be eligible for.
To summarize, don’t let another year go by without looking at your contract and double checking your benefits. You could be missing out on tens of thousands of dollars each year. Check and see what you’re eligible for and don’t forget to negotiate for what you want.
What to do with work retirement accounts when you change jobs?
Many money savvy young professionals utilize retirement accounts to invest money and minimize their yearly tax bill. While doing so is great for wealth creation, many people are unsure of what to do when they change jobs. Maybe you’ve wondered the same thing? Perhaps you’ve contributed 5-10% of your salary to your work retirement plan and now find yourself in the transition period about to work for a new employer. While you are excited about the new job, maybe you wonder what to do with the retirement account you had at your old job. Here are 5 options to consider:
Option 1: Leave it where it is. If you like the retirement plan options at your old job and the fees are low just let the money stay there and continue to grow. Unless your old employer demands that you move it, you can likely just the money you contributed in that same account. Although you can’t continue to contribute to that particular work-sponsored account if you no longer work there, you can let the money you already invested keep building over time. You can start withdrawing the money from that account at age 59.5 without incurring any early withdraw penalties but you must start withdrawing it by age 72. If you like the investment options offered by your employer, such as standard low-cost index mutual funds, then keeping the money where it is may be a good option.
Option 2: Roll it into your new job’s retirement plan. This may be a good option if you’re not particularly thrilled with the 401K options at your old employer and like the retirement plan investment options at your new job better. It may also be a good idea if you don’t want to keep track of multiple different 401Ks (or 403b’s) and would prefer to have them all at the same place. If you want to rollover the money into your new job’s retirement plan you simply contact the custodian or manager of the 401K (or 403b) plans at your old job and let them know you want to rollover the funds into the 401K (or 403b) at your new job. This a direct transfer. All you have to do is fill out some paperwork. (Some jobs may make you wait until you’ve been at the new job for a certain length of time before they let you do the rollover so contact your new job and ask). Since the money is going from one pre-tax retirement plan (at your old job) to another pre-tax retirement plan (at your new job) you won’t owe any taxes. You are simply combining 2 accounts into one. If you don’t want to do a direct transfer, you can also have the person in charge of your job’s 401K write you a check for the money and you can then deposit that check into your new job’s 401K yourself. (By law, you must make the deposit within 60 days.)
Option 3: Put the money in a traditional IRA. With this option, you call a brokerage firm like Fidelity, Vanguard, etc and let them know you want to open an individual retirement account (I.R.A) or tell them that you want to roll money from your old job’s retirement plan into your existing IRA. Putting the money into a traditional IRA may be an option for people who may not have good retirement plan options at their new job or want a bit more control over their investment plan options. The biggest advantage of opening an IRA this is that you now will have control of your retirement account and it won’t be controlled by your employer. With this control you can invest in whatever you want, whether that’s individual stocks or various mutual funds you find appealing. You also do not have pay any extra money in taxes when you transfer the funds. Through a self-directed IRA, which is a traditional IRA that you have control over, you can even invest in things like real estate, art, business partnerships, and precious metals. The downside of putting the money in a traditional IRA is that you will now be excluded from using the backdoor Roth IRA method which allows high income earners to put money into Roth IRA accounts each year.
Option 4: Convert it to a Roth IRA. Choosing to convert your work 401K (or 403b) into a Roth IRA is different from putting the money into a traditional IRA. Unlike a traditional IRA, which you contribute to with pre-tax dollars, you contribute to a Roth IRA with post-tax dollars. In other words, you contribute to a Roth IRA after taxes have already been taken out of your check and you never have to pay taxes on that money again. Why does this matter? Because with a Roth IRA you can invest in a way that allows your money to make even more money over time and you never have to pay taxes on the profits. Plus, you can take your contributions out of the Roth IRA at any time without any penalties which means it can serve as an extra emergency fund. In order to convert the money in your 401K (where you made contributions with pre-tax dollars) into a Roth IRA (which you contribute to with post tax dollars), you have to pay taxes on that money. For example, if you have $10,000 in your work 401K, and your marginal tax rate is 25%, then converting your 401K to a Roth IRA will increase the amount of taxes you owe by $10,000 x .25 = $2,500. This may seem like a lot of money now, but when you take the money out in retirement you may be paying an even higher amount in taxes since the overall amount in the amount will have grown over time. Before you decide what to do, see how much money you have in your 401K and calculate the taxes you’d have to pay if you converted it to a Roth IRA. If you can handle the increase in taxes, then converting it to a Roth IRA may be worth it.
Option 5: Cash it out. Technically speaking, you can cash out your 401K at your old job and have them write you a check for you to spend on whatever you want. This may be something to consider if you need the money to buy a home, pay off debt, or use for some other reason. While it may be nice to get an influx of cash, understand that the amount you get may be much less than you think. Since you did not have to pay taxes on money that went into the 401K, if you decide to cash it out, you will have to pay taxes on that money. Plus, if you are under age 55, you will also incur a 10% early withdrawal penalty. For example, if you have $15,000 in your work 401K and you want to cash it out, realize you will not get a $15,000 check. If your marginal tax rate is say 22% and you are under age 55, then you will only get a check for around $10,000 (only 2/3 of the money you had in the account) once you account for taxes and the early withdrawal penalty.
My point? You have 5 options of what to do with your 401K (or 403b) when you change jobs. In order to avoid paying a lot in taxes, some people tend to leave the money where it is or roll it into their new job’s 401K. If they can afford the taxes, then they may try to convert it to a Roth IRA to save themselves money in taxes later in life. Other options are to put it into a traditional IRA or cash it out. The choice is yours.
5 Financial Moves to Make This Fall
As you continue to mature you may begin to think about money in a different way. Instead of viewing money as something you can use to buy the things you want, you may start to consider the opportunities that money affords you and start thinking of ways to accumulate more. Here are 5 things you should consider doing this fall to take your finances to the next level.
1. Start investing in the stock market. Whether you are in your early 20s and just got your first salaried job, or are about to reach your 10 year work anniversary, investing in the stock market is something everyone should consider doing at all stages of life. Many people have opportunities to invest in the stock market through their jobs via a 401K or 403b retirement plan. Some companies may even offer a retirement “match” to incentivize you to invest through these venues. You should make it a goal to invest at least 10% of your income in index funds through your 401K, 403b or IRA retirement plan. If you’re able, consider investing even more money into your Roth IRA or using some of the money you have left over each month to invest via apps Robinhood, Acorns, or Stash. Investing in the stock market by purchasing index funds through retirement plans or brokerage accounts will allow your money to make money (aka “interest”) and after awhile, that interest will begin to make even more money for you (aka “compound interest”). One of the best things you can do for your financial future is invest your money and let the magic of compound interest work in your favor.
2. Reconsider what car you drive. Another decision that can have a huge impact on your finances is what car you choose to drive and more importantly, how you choose to pay for it. Many people love to purchase brand new cars. They love the new car smell, updated features, and the peace-of-mind in knowing they have reliable transportation for many years to come. Despite these benefits, there are downsides to buying a new car. One of the main drawbacks of buying a new car is that it loses its value fairly quickly in the first few years. This means it will continue to depreciate (or lose value with time). Thus, you end up spending a lot of money and having pretty hefty car payments for many years on a car that will lose value. If you are trying to invest money for retirement, spend money on other things, or save money for future trips and vacations, having a $500 car payment for the next 5-6 years may preclude you from doing so.
Other people choose to lease cars. They like being able to drive a different car every few years and don’t want to pay the full price of a car that will lose value over time. However, the downside of leasing a car is that you will still have a monthly payment each month of several hundred dollars for the next 3-5 years. When your lease is finally up, you will have to give back the car, and take out a new lease with a new set of monthly payments so that you can continue to have transportation. The most sound decision to make is to pay cash for a slightly used car. Cars that are 2-4 years old tend to still be aesthetically appealing, reliable, and are more reasonably priced. Paying for a slightly used car in cash can also prevent you from having a big car payment each month. Because the car is cheaper, you can get a much smaller car loan with much smaller car payments that you can pay off quicker, even if you didn’t have all the cash you need to pay for the on day 1. My point? Car payments can be a rather large monthly bill, so reconsider what you drive and think of ways you can reduce this payment or prevent yourself from having the payment in the first place.
3. Prioritize paying off your credit card debt. Credit card debt can negatively impact your finances in numerous ways. It charges you extreme amounts of interest each month if you don’t pay back the money in a timely manner. Since many people are unable to pay back all the charges in one month, they keep accumulating interest, on top of what they already owe. By the time they finally pay off the credit card, they have paid hundreds if not thousands of extra dollars in interest payments. If you are spending money paying off credit card debt, and the interest you owe on that debt, that’s less money you have to invest. One of the best things you can do for you finances is make a plan to pay off your credit card debt as soon as possible and try to avoid accumulating more.
4. Think twice about your living situation. Buying a house is a major goal for many people, especially young families. The idea of having something of your own to build memories in is quite alluring. In contrast, living in a high-rise apartment is extremely attractive for many young professionals who live in the city, especially if they do not have children. The convenience of being able to walk to bars and restaurants and having short commutes to other forms of entertainment can be quite attractive. While there’s nothing inherently wrong with your desires about where to live, it’s important to remember that where you choose to live, and how much you decide to pay each month for housing, can have a big impact on your financial future. Be wary of buying a house that is too large or too expensive. Be wary of renting an apartment with rent that is too high. Housing is one of our largest expenses each month. How much you choose to pay for a mortgage or rent can have a big impact on how much money you are able to save, invest, and spend on other things in your life.
5. Set up automatic savings. One of the best things you can do to ensure you meet your financial goals is to set up automatic savings. This means having a set amount of your paycheck automatically sent to a different savings account. Ideally, this savings account would be separate from the checking account that the rest of your paycheck goes into. By having it automatically deposited into a separate account you essentially “pay yourself first” and protect yourself from spending the money you were supposed to be saving. Doing this will help you build your savings each month which will increase your net worth over time and allow you to save money for an emergency fund, upcoming vacations, and other large purchases like a home, wedding, or college fund for your children.
What do you think, which of these 5 financial moves do you plan to make this fall?
How I'm Investing The Money In My Retirement Account
I just started a new job and part of the orientation process involved setting up my retirement plan. Once I determined which retirement account was best for me and how much I wanted to contribute each month, I then had to choose how to invest the money in that account. When it comes to investing money for retirement, here are 3 general rules I follow:
1. Make sure it’s profitable. Retirement plans don’t just help us save money on taxes and stash cash for a later date. One of the biggest perks of retirement accounts, is the opportunity to invest the money and make a profit. When you contribute towards your 401K, 403b, or IRA, the money is simply sitting in an account. In order to make a profit on that money, you must actually invest that money. Most employer-sponsored retirement plans (401K, 403b, 457) give you the option to choose different “index funds” that invest in stocks, bonds, or a combination of the two. Bonds are a “safe” investment but the returns on your money (aka profits) are quite low and barely keep up with yearly inflation. In order to make your contributions profitable and increase the value of your retirement portfolio, you should invest in some percentage of stocks.
2. Make sure it’s diverse. When it comes to investing in stocks, I do not mean buying individual shares of Amazon or Netflix. Buying individual stocks carries enormous risk. Even a big company like Walmart can experience less profitable periods where their revenues don’t meet expectations, decreasing the price of their stock and the value of your investment. As lay persons with jobs, it can be difficult to predict which companies or industries will be the most profitable 5-10 years from now. Even if we stay informed on company news, there is no way we could outsmart the people on Wall Street who have the latest information right at their fingertips (and even those experts get it wrong 50% of the time!) The key to managing this risk, is to invest in many different companies in a variety of industries. Since we don’t have an endless amount of money, the most effective way to do this is to invest in index mutual funds. The total stock market index fund, for example, buys almost all of the public stocks in the country. That way if one industry experiences a downturn, your stock investments in all of the other industries will prevent you from losing too much money. Plus, being this diversified may allow you to make an even larger profit when small startups companies experience unexpected growth or turn into the next Facebook.
3. Make sure it’s safe. While we want our investments to be profitable, we must also ensure they are not too risky. People who had all of their retirement savings invested in stocks during the crash of 2008 lost a lot more money than those who had invested some of their money in bonds. A general rule of thumb is that your stock-to-bond allocation should be 100 minus your age. If you are 25 years old, you should have 75% of your money in stocks and 25% in bonds. If you are 45, you should 55% in stocks and 45% in bonds. Since people are living longer nowadays, some experts suggest using 110 or 120 minus your age instead. Regardless of which estimator you use, your ideal allocation of stocks to bonds, should be based on your comfort level. Take a look at the investment fund options available through your job or through various companies like Fidelity or Vanguard and pick a stock-to-bond portfolio allocation in which you are most comfortable.
WHAT AM I DOING? As a 28-year-old female who is new resident physician, I’m investing in Vanguard’s Target Retirement 2050 fund. This index mutual fund is a type of lifestyle investment fund that automatically adjusts the percentage of stocks and bonds as I age. Money in this fund is actually invested in 4 other index funds:
-53.5% in the “total stock market index” fund (which purchases stocks from nearly every public company in the US)
-36% in the “total international stock market index” fund (which purchases over 5,000 stocks from over 40 different countries around the world)
-7.5% in the “total bond market index” fund (which purchases a mix of over 8,000 corporate and government bonds offered in the US)
-3% in the “international bond market index” fund (which purchases thousands of bonds from developed countries and emerging markets around the world)
As you can see from the breakdown, the allocation starts off with about 90% in stocks and 10% bonds, since I’m young and plan to work in some capacity for another 30 years. However, it periodically decreases the percentage of stocks and increases the percentage of bonds as I age. This advantage of this changing allocation is that I have more risk and thus a bigger chance of higher profits when I’m young (since the majority of this fund is in stocks), but become less risky as I age (since the percentage of bonds will increase overtime). Another advantage of this fund is that it decreases the work on my behalf. Instead of investing in these 4 funds individually, investing in this Target Retirement lifestyle investment fund allows me to purchase this 1 fund, which then automatically has me invested in the 4 other funds.
As I get older and more experienced, I might choose to invest in different index mutual funds or open a Roth IRA to invest in other things like real estate, but as a busy resident who is just getting started with retirement investing, this is my fund of choice. Whether you choose to adopt my game-plan or come up with one of your own, remember the 3 rules to retirement investing: Keep it profitable, keep it diverse, keep it safe.
Tell me, are you saving money for retirement? If so, how do you plan to invest the money in your retirement account?
Retirement Account 101: Answers to questions you were afraid to ask
I’m a recently graduated medical student who is about to begin my new job as a resident physician. Along with creating a monthly budget, getting disability insurance, and making a plan for my student loans, I also need to start saving money for retirement. Several of my friends and co-workers wanted me to help them get their finances in order as well. Here are my answers to some of their most common questions about retirement accounts.
1. What are the different types of retirement accounts? Technically speaking, there are two main types of retirement accounts: Employer-sponsored plans and non-employer sponsored plans. Employer-sponsored plans are things like a 401K (offered by for-profit organizations), 403b (offered by non-profits), and a 457 (offered by government institutions). Non-employer sponsored plans are called Individual Retirement Accounts (aka IRAs). Through traditional IRAs or Roth IRAs, you can choose to save earned income for retirement in a way that is not dependent on your employer.
2. What is the difference between a Roth account and a regular retirement account? Many people have the option of contributing to “Roth” accounts like a Roth 403b or a Roth IRA. While Roth accounts may have different contribution rules, the main difference between Roth and non-Roth retirement accounts is the timing on when you pay taxes on the money. Roth accounts are considered “post-tax” because you contribute to them AFTER you’ve already paid taxes. Employer-sponsored accounts are considered “pre-tax” because you contribute to them BEFORE you pay taxes.
For example, with a Roth IRA you pay income taxes on money you make now, then you contribute to the account with “post-tax” dollars. Your money builds and accumulates interest over time. In retirement, you WILL NOT have to pay taxes on the money you withdraw or on any profits you made in the account. Non-roth accounts like a 401K are different. You contribute to these accounts with “pre-tax” dollars and your money builds and accumulates interest over time. In retirement, you WILL have to pay taxes on the money you withdraw and on any profits you made in the account.
3. Should you contribute to a Roth account? It depends. If you feel your salary is going to increase in the future, then consider paying taxes now (while you are in a lower tax bracket) and thus opt for a Roth account. In contrast, if you are already near your peak earnings or may experience a decrease in salary in the coming years (due to working part time or opting for a lower paying job with more lifestyle balance) then you may want to postpone paying taxes now and opt for the non-roth retirement account.
The goal is to pay taxes on the money when you are in the lowest tax bracket. The average person will want to do Roth retirement accounts (like a Roth IRA) when they are young and just starting out in their careers (unless they have other competing expenses that make them want to defer the taxes). As they earn a higher salary, they will want to do non-roth accounts (like their employer sponsored 401K, 403b or 457 plan) to avoid paying so much in taxes on those earnings.
4.How much should you contribute? It depends. You have to figure out how much money you need to retire and contribute enough money each year into retirement accounts to meet that goal. Of note, different types of accounts have different rules about how much money you can contribute each year. As of 2024, the max a single person can contribute to employer-sponsored plans like 401K, 403b, or 457 is $23,000 a year. The max you can contribute to traditional IRAs and Roth IRAs is $7,000 a year. (This amount can increase overtime due to inflation)
5. What happens to the money you put into these accounts? Once you put money into a retirement account, you can choose to invest that money in a way that will earn a profit. Employer-sponsored plans like 401Ks may offer a variety of options with different ways you can safely invest into the stock market, purchase bonds, or do a combination of both to earn a profit on your money. Non-employer sponsored plans like IRAs tend to be more flexible and can be used to invest in things like individual stocks, index mutual funds, commodities (like gold), or real estate. Regardless of the type of plan you choose, most people use the money in these accounts to invest in the stock market by purchasing index mutual funds. These are large, diversified funds that invest in hundreds of different stocks (or bonds) and earn a profit ranging from 7-10% each year.
6. What if you own your own business, do contract work, or earn money from a side gig? Once you set aside money for taxes, you can choose to save and invest that money for retirement. Depending on your income level, you may be able to put that money into a Roth IRA (provided you have not already contributed the yearly limit of $6,000). You may also choose to open a SEP-IRA or a solo 401K through a company like Vanguard, Fidelity, TD Ameritrade, etc. These accounts allow business owners and self-employed individuals to contribute up to 25% of their earned income (or $69,000, whichever is lower) into those accounts each year.
7. Are there any special caveats I should be aware of? Yes. Oftentimes employer-sponsored plans will “match” your retirement contribution by placing an identical amount of their money into your retirement account, alongside your original contribution, up to a certain percentage of your salary. This is basically “free” money given by your employer.
Of note, people with really high incomes (i.e. physicians) are phased out of a traditional Roth IRA when their income gets to a certain level. They can try to work around this rule (legally) by doing something called a “backdoor Roth IRA” which is explained here. Some high-income earners may also be able to contribute to a 403b plan in addition to a 457 plan, which allows them to save even more money for retirement.
To summarize, there are many different types of accounts that help you save and invest money for retirement. Determine which employer-sponsored plans you have at your job and compare to them to an IRA. Traditional and Roth IRAs tend to have lower contribution limits but offer more flexibility in the types of investments you can make. Employer-sponsored plans have higher contribution limits and may even offer a “match,” but may be limited in the types of investments you can make.
Tell me, was this helpful? Do you have a better understanding of the different types of retirement accounts?