<prompt> Human: Read the Wiki and seen some similar posts, but still unsure. I have a company 401k with no matching. The 401k is through Schwab and appears to have many options for investing. I make over 60k. My dads financial advisor recommends I split my contributions into both the 401K and a Roth. I would think when I retire I will be in a lower tax bracket. Why would I go with a Roth? The only advantage I see is having access to the money in the Roth prior to retirement.  <response>: It depends on if you expect your withdrawal rate to be larger than your current income. If you expect to have over 1,500,000 by retirement and withdraw 4 annually, you save taxes with a Roth. If you expect to have less, you save taxes with a 401k. There are a few other proscons to each but that is one thing on a lot of peoples minds when they consider which account to use. If you are young like me 23 and saving heavily, it is likely a Roth is better for you. Are you married? If so, the tax rate consideration changes. Another thing is you can use the funds to diversify even more. For example, you could open a Roth with Vanguard and have your 401k in Schwab and invest in actively managed Schwab funds on the 401k and a Roth low fee index I dont necessarily recommend this I am just using it as an example. I am assuming your adviser wants you to keep in active managed because of fund incentives but so many people I talk to that have a great retirement portfolio use mostly indexes. Personally I only put up to the match in my 401k since they are retardedly high fee American Funds not a single option under 1.4 fee is gross and am working on capping two Roths wife and I with SP 500 admiral shares fee a cozy .05 baby. If I had no match I would go 100 Roth. 