Message Font: Serif | Sans-Serif
No. of Recommendations: 0
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.

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.