Welcome to the Investing for Beginners podcast. In today’s show, we discuss:

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The differences between a Roth IRA and a 401k
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The different investment options within a 401k and how you can structure your 401k to work the best for you.
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How to think about a margin of safety and looking for one beyond the numbers.


For more insight like this into investing and stock selection for beginners, visit stockmarketpdf.com

Today’s show is sponsored by:

Quartr

Jamesallen.com

Equity Trust

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Transcript

Announcer: [00:00:00] What’s the best way to get started in the market—download Andrews ebook for free@stockmarketpdf.com.

Announcer: [00:00:13] I love this podcast because it crushes your dreams of getting rich quickly. They actually got me into reading stats for anything you’re tuned in to the Investing for Beginners podcast led by Andrew Sather and Dave Ahern. Step-by-step premium investing guide for beginners. Your path to financial freedom starts now.

[00:00:00] Dave: All right, folks. Welcome to Investing for Beginners podcast. Tonight we have episode 206 tonight. We have three great listener questions that we’re going to answer. So without any further ado, I’m going to go ahead and read the first question.

So this is a bit long. So bear with me for just a moment. So I have hello, Andrew. I am a 24-year-old who has just started becoming interested in investing over the last two months. Your podcast has helped me learn so much and continues to add to my curiosity. I have just finished my first year working.

I realized I should start caring more about what I save. I recently told my dad that I wanted to add $5,000 of savings and start contributing an additional $200 a month to buy stock in a Roth IRA account. He had me open when I was 18 with $700. I’ve never touched it to a month ago. He immediately told me I should not do that.

And I never listened to him. He says that I am wasting the tax advantages offered by putting non-taxed money from my paycheck into my 401k account. Instead, he told me to buy stock through that account. I’ve been looking into it, and my company 401k only offers different choices of funds, not individual stocks.

What are my best options for the accounts to use? I have quickly found myself paralyzed about which road to take the same way I was before I learned how investing works and the concepts I...