Dear Participants,I read with interest Step 4 in the retirement sectionof the Motley Fool web site. I read with especialinterest how to determine whether or not you shouldput money in a 401K or invest it elsewhere. Accordingto the calculations I should with ease invest in RayVtsSIG4 approach (on the DDA board.) Since mycompany 401K is not matching and would grow at anindex fund rate of about 10.7%, and RayVts' approachwould gain me a 17.4% return I could retire sixyears earlier.But I began to think: let us assume that 1/2 of thestocks in the DDA approach turn over each year, andyou must pay a 20% capital gains tax on the gains. Thenputting money in the 401K gives FAR superior returns.Step 4 would seem to be a horrible suggestion. If I'vedone my formulas correctly (see below) Excel showsthe difference to be between $100K and $700K of 1998dollars. Does anyone else have the same findings? Or do youthink my calculations are flawed?Thanks,Mr. Jones------------------------------------------
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