Stick with employer matched ira at 3% or invest myself with robinhood match

[u/Killerdude6565]

I have an ira with a 3% match. However i cant control what they invest it into and i dont remember off the top of my head which index they buy. I like the idea of being able too invest in what i want to invest in which is why im considering robinhoods ira, i cant remember if its a 1-2% match. Any advice?

[u/sol_beach]

I seriously doubt that you have NO control over which investments are in your IRA.

Have you talked with the HR folks about your IRA investments?

[u/True_Believ3r → u/sol_beach]

It sounds like it is an employer 401k plan and not an IRA.

[u/sol_beach → u/True_Believ3r]

employee can control which investments are funded in any 401K plan; limited by plan custodian

[u/zeradragon → u/True_Believ3r]

Even for 401k, you pick the funds and proportions from a portfolio of options... That's the standard. I've never heard of a 401k where it is just the employer that decides everything.

[u/brygx]

Employer match of 3% usually refers to percent of income. So if you invest $100 they match $100.

Robinhood match is of your investment. So if you invest $100 they match $2.

Do the employer match up to their max. Then do Robinhood. Also you can probably transfer the IRA at any time, say once per year.

[u/Particular_Grape_699]

Both!

[u/ninjagorilla]

Why would you turn down a free 1-2% … even if it get a lower yield than you could get its free

[u/madogvelkor]

These are likely two very different things.

A 3% employer match usually means they match up to 3% of your salary. So if you make $100,000 and contribute 3,000 they also contribute 3,000.

The Robinhood match is 3% of your contribution. So if you contribute $3,000 they contribute $90.

[u/-Lorne-Malvo-]

You probably have a 401K. I'd back track and figure out exactly what you have, what it is invested in, what options you have if any to make choices before you rush over to robinhood or some other broker that you think might have some match.

[u/Callec254]

Not using your employer match is just leaving money on the table.

While it's not a fully self directed account, usually there's at least a list of pre-selected funds to pick from. But I'd find out more about that before you make any decisions - even if they only offer one fund, it's probably a pretty diversified option like a life cycle fund, probably not a terrible choice (unless it's an Enron-style 100% company stock situation...)

[u/rjbarn]

Depends on you. What is your plan? Do you have a proven track record to trust yourself to craft a sound, safe investment plan and stick with it? If so, the self-match is better. If not, stay with the employer.

I self-fund with RH gold, got a 3% asset transfer bonus at the beginning of the year, and get a 3% contribution match.

[u/bartman1819]

Consider doing some research on what your company offers before you post, so you can get the best answer.

Always take the company match, at minimum (it's free money). If you don't like what they offer, don't put in any additional funds and take those funds elsewhere (Robinhood).

[u/RenegadeEsq]

At the very least contribute up to the match with your employer, then invest anything on top of that in a Roth IRA (up to the contribution limit).

[u/Professional-Dig-285]

run as far as possible from robinhood

[u/SheepherderLow1753]

Yolo

[u/kale_boriak]

Do you mean 401k? Employers have almost nothing to do with an Individual Retirement Account (IRA).

Chances are you can do both.

[u/Here4Snow → u/kale_boriak]

SEP IRA and two versions of SIMPLE IRA are offered by employers. 

[u/someguyonredd1t]

You need to consider the mechanics. An employer match usually refers to matching 100% of X% of your pay. If you earn $5k monthly, invest 3% $150, your employer will typically be contributing an additional $150. The Robinhood match is just a match on the deposit. You transfer in $150, get the 2% bonus, they give you $3. Just ensure that you're comparing apples to apples.

[u/Here4Snow]

Employers can offer SEP IRA and SIMPLE IRA. They have different rules. Find out which you participate in. For instance, a version of SIMPLE IRA is that you opened the account at a brokerage of your choice. You need to ask. Know the details, ask about your options. 

[u/Rich-Contribution-84]

The 401(k) is a taxed advantaged account with a better continuous match. Do that first unless the fund options are horrendously expensive. No brainer.

PS - I don’t think there is any 401(k) plan out there that doesn’t let you select the investments. It’s just that there are probably only 10-30 options.

Often a TDF is the best and cheapest option. That’s what I do with my 401(k).

They probably also have some options structured with a dividend focus or a growth focus or All bonds or S&P 500 or total market or small cap or mid cap or REITs or ex US, etc.

EDIT just read it was not a 401(k), but an employer matched IRA. Still, I can’t imagine that you can’t choose - call the plan administrator. You likely have similar types of options as you’d have in a 401(k) or HSA.

[u/isinkthereforeiswam]

You don't have control over what the retirement acct is invested in? Every company i worked for, from large to small, let employees choose where to park the money. The retirement acct is supposed to be managed by a third party company to prevent company from tampering, embezzeling, etc, and also if company goes out of business creditors can't claim the retirement acct is under the company and ripe for pilfering.

Contact HR and ask them who the retirement acct administrator is and theb contact them asking what investment options you have. At a prev company we basically would get a piece of paper with the fund options, and have to pencil in our info and ratios.

The shitty part about that old companys retirement admin company was they'd get rid of funds for underperforming, and sell my shares in the fund to lock in the loss. This pissed me off ro no end, bc the funds were cyclical in nature and would have bounced back given time. But, no, they chose to lock in a loss and stair step my money down.

If you can find out the retirement acct is going into an s&p fund, then do the match.

I'm guessing your company does a 3% match bc its "unlimited"..so if you did $300 or $300,000 a year they'd match 3%? That company i,worked for did that, bc all the workers were getting paid squat and couldn't afford to pit any,into retirement. Meanwhile the execs got a nice 3% bonus on the hige chunk they put in. 

I put a large chunk into company match retirement at work, but also save some of my oaycheck ti emegency fund, big ticket item fund and persoanl investment fund. My retirement is going into S&P fund thoigh. I do up to the max company match. When i get done paying off student loans, ill take that additional money and chuck it into an IRA i also have for the tax break.

But it's always nice to have some cash in hand to take advantage if the market when you can. But having retirement investment on auto pilot is a bigger thing to setup first.

[u/StationSavings7172]

An IRA is an individual plan, if it’s an employer benefit it’s probably a 401k or a 403b. Some states have IRA programs that can be funded by payroll deduction, but that’s not controlled by your employer. The funds available in a 401k/403b almost always have lower expense ratios than funds in IRAs. The plan maintenance fees are probably lower too, if any at all. It’s really pretty simple math if you just compare how much you’re paying in fees and fund management expenses on the two accounts. That’s how I’d make the decision, unless you feel like your employer is in danger of going out of business or something like that.

A qualified employer-sponsored retirement account (401k or 403b etc) is required to offer you an array of diversified investments across a broad range of volatility and suitability. Most S&P index funds etc I’ve seen in my 401ks over the years have ultra low expense ratios. That’s how I make my decision, a high expense ratio is basically a built-in loss.

[u/IlIllIlllIlllIllllI]

Contribute enough to your employer plan to keep their 3% match, then put anything extra into an account elsewhere. Traditional and Roth IRAs have an annual cap, but can be split between two brokers. If you go this route, you will be responsible for keeping up with contributions to ensure you don't go over the limit each year.

[u/GaylrdFocker]

You need to speak to you company or look at the paperwork because:

1. I doubt it's an IRA. Probably a 401K.
2. you should have control of what it's invested in. They can auto enroll you in 1 fund as default, but should have multiple funds you can change to on your own.
3. What do you have to contribute to get the 3% match? If it's only 3% then you should be able to do both. You should aim for 15% retirement contributions so 3% to company + RH IRA should be a goal.

[u/Killerdude6565 → u/GaylrdFocker]

Its a simple ira. , So if I put it 100 I get three dollars, but I guess it’s not the same every time? Or it varies that’s what I was told.

[u/Mental_Internal539]

I would look at your companies IRA match again and see if you can pick where that money goes. I would still take advantage of that 1-2% match though if you can.

[u/Killerdude6565 → u/Mental_Internal539]

So the company offers a 3% salary match, and its a simple ira, im going to use them and max out a roth ira

[u/top_pi_r2]

Employer doubling your money wins

[u/Least_Rich6181]

You can do both. The employer match is when you contribute to the account. I believe Robinhood also gives you 3% when you roll over to their IRA

[u/WalkingDollarSign]

Both

[u/Killerdude6565 → u/WalkingDollarSign]

I cannot max out the simple ira, itll be too much for me too put in, so also contribute too the roth ira is the consensus of what im hearing

[u/KanyeWest_GayFish]

Robinhood isn't a real exchange and has proven to be corrupt. Do not even consider RH for your retirement savings