retirement plan IRA, 401K plans witch is best

[John L Daly]

what's better whole life insurance , IRA, 401k? for contributing to long term ?

[Dmitriy Fomichenko]

@John L Daly, 

Whole life insurance is NOT a retirement plan. It is a life insurance with forced savings component, bunch of fees and high commissions paid to the sales person selling it. For most people whole life insurance is a rip off, it is almost never a good idea to bundle life insurance and savings. You will be better off buying cheap term life insurance to protect your loved ones and invest separately, you won't have to pay any fees and will have 100% of your savings to invest. 

IRA vs 401k - depends on your situation. IRA contribution limit is $6,500 per year. Solo 401k contribution limit on the other hand is 10 times higher, $66,000 for 2023. You don't have to have a custodian for the 401k (unlike an IRA) and can have "checkbook control" and ability to invest in alternative assets such as real estate or private lending. However, to qualify for a Solo 401k you must be self-employed.