No. of Recommendations: 0
401(k), IRA, even Roth... "Some Restrictions may apply." some restrictions can be good.

it's late, so i'll bore you with an anecdote... When
*i* was 26, i had several thousand in company stock (IBM). where is it now? it paid for the first
year of grad school and much of the following three years (more grad school). ie. Gone.
x4a54 wrote,


Had there been "restrictions", i might still have some (but probably not).

it's your money and you should run the numbers but even just a few thou, left to compound for
40yrs could become a very nice pile of money.

(and while computing, try to keep in mind that we have NO idea what tax rates will be like over
the next four decades, or even what the relationship between ordinary rates and capital gains
rates might be)

good luck.



I agree with everything you wrote.

My suggestion to run the numbers on 401k vs. stock assumes the individual will still use the money to fund retirement. I completely agree with you that individuals unable to resist the temptation of "tapping" retirement money in a taxable account would be better off in a 401k/IRA -- even if the investment expenses were higher and returns lower.

I'm also working on an Excel spreadsheet that will give folks a head start on making the 401k/Taxable account comparison. I'll try to post it next week.

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