I suppose this will be an overly basic question, but this is the background.My wife's 401K/profit sharing plan, as invested, stinks. We have no alternatives to their distribution (very conservative and safe but, naturally, wasteful of the resource). Her employer makes no contribution to the 401K, it's all her own money.Here's the question. Do we have to contribute to the 401k within the framework of the plan (using the trust company managing the employer's plan) or can we set up our own 401K account and run it ourselves? I'm sure this is just Foolishly hopeful thinking and that it's all up to the discretion of the employer. But hope springs eternal in the heart of a Fool.
It's all up to the employer. You have no choice. You can lobby for the inclusion of stock funds and such, but it's their decision in the end.
If the investment options are that bad, and there is no employer match, maybe you should consider not contributing anymore. You have to decide if the current tax savings are worth the poor return you are getting through the 401K. Perhaps investing after-tax dollars into a portfolio of your own choosing would be the most Foolish thing to do. One idea is to start your own "401K" with after-tax dollars using DRiPs. Follow the link:http://cbs.marketwatch.com/archive/19990422/news/current/superstar.htx?source=blq/yhoo&dist=yhooHope this helps.Taylor
You probably already know this, but she could put up to $2000 total in a regular and/or Roth IRA selecting from a wide range of great mutual funds.
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