Simplicity, I think, is the main reason. It’s just easier to have fewer open accounts. Maybe a bit of lazyness as well…

I also can’t claim to fully understand how an IRA or Roth IRA really works and which, if either, someone in my position should lean towards.

Years ago, when my personal business was at its height, I often flirted with an income level that would have prevented me from opening one.

I never actually hit that mark, and now I’m no where even close, but had more clients paid for my services on time, I would have exceeded it right at the tail end of the year. It was just too close.

I also find the $5000 contribution limit really low. I know that sounds like an arrogant statement, but it’s not meant to be.

It would take 13 years to approach the balance on my 401k. Nearly 60% of the value of my 401k has come from the last 3 years of my contributions. On an IRA, over the past three years, I’d have been capped at $13k because of the low contribution limit.

Admittedly, though, I just don’t understand the advantages of an IRA enough to figure out how being limited to contributing such a small amount each year can be beneficial.

Obviously, it must be greatly beneficial because so many people do it — I’m just not there yet.

Maybe when I finally eliminate the auto loan…