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Author: dsemmler Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75383  
Subject: Re: 401k problems Date: 12/7/2004 3:44 PM
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What can I do? I feel so angry that I'm considering stopping all contributions to my 401k and just putting it all in a roth IRA or something. Not foolish...I dont' think...

Does your company match your contributions at all? If not, I would seriously consider stopping the 401k and using the Roth IRA and a taxable account with a low-fee online broker.

If they do offer contributions, I may be inclined to switch over to the mutual funds (assuming that they offer a good index fund) and contribute only enough to receive the full match. After that, I would max the Roth IRA and invest anything else in a taxable account.

While the advantage of tax deferred investing is appealing, it does not make sense if you are investing in things that do not fit your strategy or plan, even more so if there is no matching contribution from the employer. And with the lower capital gains taxes right now, the taxable accounts are not as negative as they once were.

Just something to consider...

dt
does not have a 401k as it is not offered but does have a SIMPLE-IRA
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