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Author: Crikes1 One star, 50 posts Motley Fool One Everlasting Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75642  
Subject: Increase my 401 contributions or buy RM stocks? Date: 3/12/2000 11:28 PM
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I currently contribute 15% into my 401K and max out my Roth IRA. Recently my employer told me that I can now raise my contribution to 25% if I choose. If I do, I won't be able to continue buying as much RM or RB stocks each month. I currently have a few shares of CSCO, INTC, NOK, and CRA. My question is :

Would Fools recommend raising my contribution to 25% and buy fewer shares each month, or just continue what I'm doing? Will my tax savings justify increasing to 25%? I don't have a choice of an S&P 500 index fund in my 401, so I elected a fund that primarly invests in large cap stocks of the S&P 500. I am 42 years old and I don't really want to work past age 55. Because I started investing so late, our (my wife and I) total portfolio is only at 35K. It's a start and we choose to live well below our means. What else can I do to help me reach my goal?
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Author: JLC Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20056 of 75642
Subject: Re: Increase my 401 contributions or buy RM stoc Date: 3/13/2000 10:23 AM
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Anything above employeer match is a waste (more or less). You're still going to pay taxes on withdrawl, you don't have as many choices, plus you're not getting that "free match money".

I'd go for more RM stocks. Gains taxed at lower rate. You've got greater choices.

JLC

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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20062 of 75642
Subject: Re: Increase my 401 contributions or buy RM stoc Date: 3/13/2000 1:36 PM
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Agreed that the RM stocks are a better investment assuming they continue to grow long term. If they faulter, or if you are forced to trade them, the 401K can be better.

The 401K is a more conservative investment in my view. Its more likely to get your there, because your earnings are protected from taxes until retirement.

But set up a spreadsheet and do some back of the envelope figuring to see if one is clearly better in your case. Much depends on the return you actually get in the two scenarios. So monitor the performance you get year to year and change as you see one is working better for you.

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Author: mphipps Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20216 of 75642
Subject: Re: Increase my 401 contributions or buy RM stoc Date: 3/17/2000 11:42 PM
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Here is some advise.
Don't put it into 401k

NTAP
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Author: mphipps Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20217 of 75642
Subject: Re: Increase my 401 contributions or buy RM stoc Date: 3/17/2000 11:47 PM
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Another option
http://boards.fool.com/Message.asp?id=1330942007912000&sort=id

Do you have S&T fund in your 401k, Russell 200o or International?
If so you need 10=20% in those funds as well.

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