Okapi, you wrote:<<I'm eligible for my company's 401k now. They match up to 4% so it's a given I'm going to put that much in. I'm confused about whether I should put more in. There's no index fund option. The closest I can see are Sequoia and Fidelity Growth & Income, or my company's stock (Disney). Both lag the S&P by a % or so from my initial research, Disney have overall performed better, though its stock's in the ground now. Does it make sense to max on those or to use my after tax income to do something else. I've read the Fool guidelines about calculating if you can get a better investment somewhere else, but I'm not sure what to use as the better invstment benchmark. The Fool 4? One of the higher mechanical growth strategies?>>Like in your case, my employer does not offer an index fund option and those mutual funds that they offer are trailing the S&P 500 48% of the time by over 9% annually during the past four years. While several of us at work are trying to encourage additional options such as an index fund, we are thinking about taking ourmoney outside of our 401(k) until improvements are made.I would refer you to Robert Sheard's points on poor performing 401(k) options. As he notes, "...it may not be in your best interest to continue contributing to the plan." If our options don't improve at work, I will be taking my money out soon. His article is at -- http://www.fool.com/DDow/1998/DDow980819.htm mcadoo11
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