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Why should I do this if I already have a 401k or IRA?

Raise Investment solves a different problem than retirement

Patrick Cason avatar
Written by Patrick Cason
Updated today

If you've already got a 401k or IRA for retirement, you should definitely keep funding these! Raise Investment accounts do not benefit from tax-advantaged status like a retirement account, but they have a few unique advantages to retirement accounts:

  1. Only Raise Investment provides you with the initial, large investment to jumpstart compound interest. In a retirement account, as well as in other traditional investing accounts, the you compound from whatever capital you invest. That's not the case with Raise Investment.

  2. Unlike a retirement account, you can cancel your Raise Investment account whenever you want and begin using these funds before you turn 59 1/2. With retirement accounts, you'll incur a penalty if you begin taking disbursements before then.

Raise Investment is a great compliment to a retirement account, but it isn't intended to outright replace them, or compete with them.

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