UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75338  
Subject: Re: Is a new 401k Foolish? Date: 4/25/1998 11:52 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Greetings, Jim, and welcome.

<<As I retire from the military at 38, I will begin my new life with an excellent private company in July. One "benefit" offered is the 401k, with full employer matching contributions up to the annual max.

Perhaps I'm not Foolish enough yet but I can find no flaw in participating. Pre-Tax contributions that are doubled by the employer sound pretty good.

Should I skip the 401K and add the contributions to the Foolish 4 or keep it on the side? The second seems better to me.>>

Around Fooldom, we believe contributing to an employer's retirement plan like a 401k to get the maximum match from that employer is a very Foolish thing to do. That's an immediate, tax deferred, riskless return on your investment that we call Found Money. Even in a mediocre 401k fund, it is tough to beat in anything else. In your case with a full match up to $10K (mighty generous, that), it can't be touched anywhere else. Forget The Foolish Four and grab it!

Regards….Pixy
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Value Hounds

Medallion Financial: TAXI!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement