Should I cancel my 401k?

[Steven Cruz]

Hello,  I have a 401k and I was thinking of cancelling it because I have a 457 b option plan. I haven’t put much into the 401k so I’m not worried it much(only 6k). But recently I’ve been thinking a lot about it, my employer doesn’t match any retirement plans. I’ve been investing on my own and have good returns, I also will receive pension . Should I just not have a 401k/457 and just invest on my own? Would love some advice, very new to all this investment stuff.  

[Dave Spooner]

@Steven Cruz I'm not super familiar with a 457b, but from some quick research, it sounds like you can contribute the normal maximums to both independently. Here's one article that covers some of the rules around it: https://wrennefinancial.com/ca...

If both are available to you, I would strongly suggest trying to take full advantage of both. I would not close either. The tax savings are tremendous over time and can result in quite literally millions of dollars of wealth that would otherwise go to the IRS.

Your employer should allow you some control over the actual assets invested in. The safest play is to just stick it all in a variety of ETFs that give you exposure to the S&P 500, International stocks, treasury bonds, etc. I personally recommend looking up some of the Vanguard funds.

Bottom line - don't turn your back on free money!