In an earlier post, we went over how easy it is to get a clear answer on how much to contribute to your 401(k) using the Finra 401(k) Save the Max Calculator. Similarly, in this post we want to provide direction on where you can go to get clear explanations of “The Big Three” retirement financial vehicles: the 401(k), the traditional IRA, and the Roth IRA.
If you are immediately overwhelmed by the prospect of “The Big Three”, don’t fret! The Big Three can be intimidating and complex if you are at the beginning of your financial education journey. In fact, from our experience, the perceived complexity of the different vehicles can often lead to apprehension or avoidance entirely of what are some really great ways to plan and save for retirement.
To help get over the feeling of being overwhelmed by seemingly complex subject matter, we often find it useful to start somewhere where we can find a clear explanation of the fundamentals of the topic at hand. One of our favorite go-to sites for learning just about anything – including topics under the financial education umbrella – is Khan Academy. When it comes to “The Big Three”, Khan Academy comes through again in the clutch again! Not only does Khan Academy cover everything from K – 12 education, but it also provides some fantastic videos with clear explanations that will get you off to a strong start in becoming experts on these very important retirement and savings vehicles and how you can use them to your advantage. Without further ado, here they are: