'peopleneed tosave money outsideoftheirretirementaccount,' says Mr. Medley. 'And as elementary as it may seem, an automaticplan works well for mostpeople.'
Pay Yourself First: Just as a 401(k) plan puts money into your retirement plan directly out of your salary, you can set up an automatic investment plan to move funds from your bank to an investment.
In addition, individuals who die and are subject to federal estate tax can obtain an automatic payment plan to the extent that the tax is attributable to actively managed real estate businesses.
But remember, you need to be disciplined if you are going to forgo a 401(k) for an IRA--make sure you set up an automatic investment plan for the Roth, something you can do through many mutual fund companies.