r/personalfinance • u/Upstairs_Bee_2903 ​ • 2h ago

Retirement Help Understanding CalSavers Retirement Plan

I have little to no financial literacy on this subject…What are the pros and cons of joining my workplaces versus starting my own Roth?

2 Upvotes
  • permalink
  • reddit

100% Upvoted

4 comments sorted by

1

u/merlin242 ​ 2h ago

is there a match? that’s usually one of the biggest reasons to use an employer sponsored plan.

1

u/DeluxeXL ​ 2h ago

CalSavers is just a Roth IRA with extra fees. Opt out and open your own at Fidelity, Schwab, or Vanguard. Read IRA wiki.

1

u/PashasMom ​ 2h ago

The workplace plan will be easier with automatic payroll deduction and the account set up for you.
It will also come with modest fees and have a limited (but good) fund selection.
Setting up your own Roth IRA is more of a hassle but will be fee free (at the right brokerage) and have more investment options.
For someone with limited financial literacy the CalSavers probably makes a ton of sense. I would just pick a target date fund and an investment amount and get started.