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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75335  
Subject: Re: 401k Options Date: 12/30/1999 11:05 AM
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Greetings, Bingo37, and welcome. You wrote:

<<I currently participate in my employer sponsored 401K plan. I am fully vested and have selected aggressive growth mutual funds. The aggressive growth funds that are available to me through the plan have not performed to my expectations nor have they performed as well as alternate S&P index funds.

Am I better off staying with the current employer sponsored plan due to the employer contributions or should I be looking for alternate investing options such as a IRA? >>


Certainly you should contribute enough to your 401k to get the maximum possible matching contribution from your employer. Otherwise you're leaving found money on the table, and Fools rarely do that. Beyond that level, though, you could possibly do better elsewhere to include using a taxable investment. To determine that, you need to perform a tax-equivalent analysis of your fund against any alternative you are considering. I suggest a way to that in Step 4 of my 13 Steps to Foolish Retiement Planning at http://www.fool.com/Retirement/Retirement.htm. Read that, and then do a similar analysis for yourself. By doing so, the decision should become clearer to you.

Regards..Pixy
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