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URL:  http://boards.fool.com/tmfpixy-says-ltltfor-a-401k-to-be-better-10154149.aspx

Subject:  Re: IRA capital gains convert to ordinary income Date:  4/15/1998  12:09 PM
Author:  PSUEngineerFool Number:  2847 of 78168

TMFPixy says

<<For a 401k to be better beyond the maximum match, the plan must offer some halfway decent options. Too many don't, thus making it fairly easy to outperform them in a taxable investment.>>

I have concerns with this statement. From my observations, most companies offer an index mutual fund. The taxable account needed to try to outperform the index would probably be several stocks (in essence creating your own mutual fund).

You make the assumption that most people will have the time and ability to be able to pick their own stocks and beat the S&P 500 when most professionals of managed mutual funds can't.

I think alot of people are blinded by the high flying tech stocks of this bull market. Today's darlings are Compaq and Dell. If you remember from the 1980's, Zeos and Wang were top computer companies. Zeos was bought out at a low price by Micron and Wang struggled until converting to a computer services company. Of course you ca