Question : What type of investments are similar to a 401k plan?
I have a 401k plan at w/ run by John Hancock (JHPensions). The funds that I have chosen have some pretty decent returns. I am wondering what is similar to this that I can invest in? I’m not talking about a different 401k or no taxes on may wages. I am talking about a similar program or plan where I can invest some money. Is a mutual fund similar?
401k plan

Best answer:

Answer by rcdrury
A 401(k) is not an investment. It is an employer-sponsored, tax-qualified retirement plan. It CONTAINS investments, usually mutual funds and/or company stock. If you are referring to options for retirement savings, take advantage of all your tax-qualified options first (401k, IRAs, etc.).

Contribute to your 401(k) to the extent that your employer’s match is maxed, then look to IRAs. You can put virtually any type investment into an IRA (stocks, bonds, mutual funds, annuities, for example). Most qualified plans are pre-tax tax-deferred; meaning you put money in before you pay taxes on it, then it grows without taxation until you withdraw it in retirement. A Roth IRA works opposite, but is usually preferable. You contribute to it post-tax, but you withdraw the funds completely tax-free in retirement.

Speak with a properly qualified financial advisor or planner. Many are available at little or no cost. A referral from a friend or relative is usually best.