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Subject:  Followup re invest in stocks for 401K Date:  12/24/2004  1:44 AM
Author:  Acroreef Number:  18275 of 26139

Dear Folks:

May I ask a follow-up question regarding investing in a 401K style retirement plan. I know it would pay to invest in stocks only 2-4 times a year to cut down on the transaction fees as a percentage of my investment, but doesn't it make sense to invest the PRETAX dollars in stocks instead of mutuals? Given the much greater POTENTIAL for the stock to appreciate? And the tax ramifications that the investment dollars are pretax? I don't understand why mutuals would be preferred, given my long-term desire to hold the stocks.

Thanks again for the help.

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