401k’s and IRA’s have their pro’s and con’s. However, often times government sponsored programs can make you feel trapped. They have strict rules, and most people are not aware that there are some very good alternatives to their 401k plan.
There are a few reasons that you could be fed up with your 401k and are now looking for 401k alternatives. A 401k, and also IRA’s, are market based investments, so many times people do not want to deal with the risk of losing chunks of money in an instant, out of nowhere.
Others are earning below 3% annually on their 401k, making it a horrible place to invest their money.
And there are still others who are afraid of taxes going up. If taxes go up in any way, then you are much more likely to pay higher taxes when you retire.
But no matter what your reason is, it can be hard to change. Why? Because finding good 401k alternatives can be hard. I want to take a look at a few alternatives, and then I want to show you what I think is the best options for your 401k or IRA alternative.