Re: No match 401K vs Roth IRA
Good points, squiffy...
As a note, by putting savings into BOTH (which you are allowed) the 401k and Roth IRA (should you meet the income qualifications for a ROTH---you can find these on Fool or MSN Money, you can up your retirement savings for the year to the max, which is $4k for those under 55 years of age and $14k in the 401k, equaling $18k for the year. Even if you don't meet the qualifications for a Roth, you can invest in a traditional IRA, just check with your tax advisor on deductability of those contributions.
Your contributions to the 401k reduce your taxable income for the year, as they are pre-tax contributions. They grow tax-deferred until you begin withdrawls after retirement, at which time you are taxed at your current income tax rate.
Your contributions to the Roth are after-tax contributions, so they grow tax FREE until you begin taking withdrawls after 59 1/2.
As I don't know your financial situation or your tax bracket, I cannot in good conscience make any recommendations, but I cannot personally see any downside to maximizing your retirement savings when the investment vehicles are made available to you.
One additonal point of consideration, if you change employers, you can roll-over the balance of your 401k to your new employer's plan, and hopefully THEY will offer a match and you will receive the benefits of compounding by already having a balance to transfer into your new plan!
Boo-yah...
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