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I have been reading the reports about Roth IRA's, and I want to know what others think about investing in 401K vs. Roth IRAs for young investors. I participate in my company's 401K plan, and I am planning to open an on-line account to begin investing in stocks.

Is it wiser to open a Roth IRA instead at this stage? Do I need both the 401K and the IRA? Are there significant tax advantages for a young investor? I understand the importance of compounding interest and starting early, but with the limited funds that I have to invest, I want to get the most from it. Is it more important to get involved with a Roth IRA, or begin a portfolio of stocks?

Please let me know what you think.
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