No. of Recommendations: 1
Ooh. I forgot to mention that my employer matches 50% up to the first 6% of my income. If I max it out, this comes to $1950 in free money per year. However, the gains I expect to make on the money in a 401(k) seem lower to me than what I'd get investing in foolish 4 stocks or whatever in my own IRA. Does that change your recommendations?

Let's see if I understand this correctly.

You defer 6%.
You get a 50% match (an additional 3%).
If you put that into an Index Fund you should get 10-12% retrun (0.9% - 1.08%).
For a total combined return of 65% - 68% on your original 6% deferal. (9.9% - 10.08% of your income total, including your original 6%.)

What kind of return were you expecting from the Foolish 4 again?

Sacto Fool
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