In the fall of 2019, index funds finally surpassed actively managed mutual funds. As of August 31 of last year, $4.27 trillion was invested in index funds and only $4.25 trillion in their active counterparts. Clearly, index funds have seen an incredible rise in popularity over the last decade. The question, though, is whether or not their popularity is justified. Are index funds really as great as everyone thinks?
If you are close to retirement and are looking for ways to beef up your retirement accounts, you have no lack of options for how to build up a nest egg. The problem is finding the right account for your needs.
The two most common retirement savings vehicles used to maximize growth and ultimately reach your goals for retirement are the Individual Retirement Account (IRA) and Employer-Sponsored Retirement Plans (ESRPs). Let’s go through 3 key differences between these accounts so you can make the best choice for your situation.