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Author: nicpottier Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75772  
Subject: My 401K manager's reaction.. Date: 3/29/1999 3:28 PM
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I decided to stop contributing to my 401K after checking the funds performances and seeing none of them have matched the S&P 500 in the past couple years. I sent a quick note to the manager of our account for our 401K telling him that I was ceasing contributions and why, and he replied with the following:

---

Nick,

That would be very foolish.

You are discontinuing investing in a tax sheltered account? Maybe you
outperform the mutual funds (some of the best in the country) by a FACTOR OF
50% (A HUGE FEAT) but you pay no taxes in the 401k until you retire, and you
give back 30 to 50 % of your gains outside the 401k. So what are you really
accomplishing???

---

His only mistake was not capitalizing 'Foolish'..

I'm quite sure I can do 50% better than the mutual funds offered and I'll have the peace of mind of knowing exactly where my money is invested and how.

-Nic
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