- CNBC’s Jim Cramer explained how to save for retirement, going over the key differences between 401(k) and IRA plans.
- Both 401(k)s and IRAs can be good options, according to Cramer. It depends primarily on your personal needs.
CNBC’s Jim Cramer said he thinks financial literacy is lacking at most schools in the U.S., especially when it comes to individual retirement accounts, or IRAs, as well as 401(k) plans. It’s important that everyone knows how best to save for retirement with some sort of tax-favored account, according to Cramer.
Cramer explained that putting your retirement savings in a 401(k) or an IRA can both be good options. One might be better than the other depending on your individual needs or your employer’s policies.
“The best thing about a 401(k) is that it’s tax deferred,” Cramer said. “In plain English, that means you pay no taxes on what you put…
