If your employer contributes to your 401(k) (a retirement account that lets you automatically contribute a portion of each paycheck), then you should contribute, too – up to the employer's match. If you don't, you're basically throwing away free money. If they don't contribute anything, you might be better off going a different route.
The fees are exorbitant (employers hire large asset managers to take care of the employee's 401(k) accounts, and that isn't free). In fact, a survey last year from Demos showed that on average, a couple could spend $155,000 in 401(k) fees over a lifetime. Instead, take ten minutes and open up a Roth IRA online from a discount brokerage firm. This is an account where you contribute money that you've already paid taxes on and your money will grow tax-free. Who knows where tax rates are headed (probably up), so get the taxes over with now.
By Business Insider