No. of Recommendations: 3
am I all wet and out of date with the latest thinking of only 401-ing to the match?

Not necessarily.

The thinking is that many 401k plans offer ... ummmm, how shall I put this ... less-than-stellar investment choices. Witness the current thread of someone stuck with mutual funds carrying a 5% front-end load. So you ***might*** be better off investing the money outside a 401k plan.

Further, with the current tax laws (which are subject to change at the whim of Congress) you might be increasing your ultimate tax burden by using tax-deferred plans like 401Ks. That is because long-term capital gains and qualified dividends get a preferential, low, tax rate. And that rate is not available to distributions from a 401k plan.

Then again, if you never get around to actually saving and investing the money if you don't have it automatically sucked out into the 401k plan, that advice would be hurting you instead of helping you.

As someone else has said recently, there are several right answers to investing your retirement money, not just one.

--Peter
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