We are not professional accountants, financial planners, or attorneys.  We are sharing our opinions and thoughts, and we do not know your personal situations, so our advice may not be applicable to you.  But we did stay at a Holiday Inn Express last night!Our point is we’re here to talk about these things with you, not to tell you what to do. So we recommend you spend some time researching these concepts for yourself or talk to a financial advisor.A 401k and 403b is a retirement savings account that allows you to save money pre-tax, invest it, and start withdrawing it penalty-free at age 59.5.  You pay taxes then, in theory, at a lower tax rate.  Roth 401ks are the opposite; you pay taxes now and not at withdrawal.  Many companies will give you a choice between a 401K or a roth 401K.  The 401k itself has fees, and then your investments have fees, so over time, it gets expensive. Consider rolling it all into a self-managed IRA when you leave a company.401ks almost always have limited investment options, and this is by design. Companies want you to see this as a benefit, not be overwhelmed by it. You can typically invest in:Money Market FundTarget Date FundsBond/Treasury FundsOther Equity Funds:  Small Cap, Large Cap, International, High Growth, and Broad IndexIt’s all about your appetite for risk:Money market is like cash and basically no risk.Bonds are lower risk.Target date manages risk by adjusting the mix of cash, bonds and equities.Broad index funds have some risk.Equity funds generally have the highest risk.  The higher the risk, the higher the return. But, again, we’re not advising you on what to invest in. A target date fund will give you some peace of mind if you are risk-averse. Remember that over a lifetime of investing, it will all go up. Top 3 takeaways:401ks allow you to invest savings pre-tax and let it grow.Investments are usually limited, and you can see what the fund options are actually invested in.Picking the right investments depends on your appetite for risk.  So do some research and see if you’re comfortable with the individual stocks within a fund and the fees.Show References:Friends on FIRE episode #016 -  401ks are your BFF!Friends on FIRE episode #114 -  What’s a rothIRA and do I need one?Friends on FIRE episode #059 - The amazing tax benefits of FSAs, HSAs, and DCAs---Follow friends on FIRETwitterInstagramFacebookLinkedInLeave us a voicemail or text us: 404-981-3370eMail us at:  friendsonfiremm@gmail.comVisit our website: www.friendsonfire.org---Other LinksMaggie’s Blog: Mostly Minimal LifeMike’s Book: Your New Relationship with Money