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I am presently investing 10% of my monthly income in my companies 401K. The company matches, in company stock(Ameren-AEE), upto 6% with 25 cents on each dollar. I recently switched from the 4 options I was investing in to an Indexed Equity Fund that has returned 21% for the past 2 years.

I am considering reducing my with-holding back to 6%and investing $2000 each year in a self-directed Roth IRA.

I need opions from other Fools

rptrower

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I like it. But you should know I'm partial to Roths. I know when I'm in my 60s (or whenever) I will love taking money out without paying any taxes or filing any tax forms, etc. With 401(k)s and traditional IRAs I'm gonna cringe every time I gotta pay those taxes.
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Is the $2000 you're putting in the Roth, more than the 4% you're going to stop putting in the 401(k)?

Make sure you don't cut back on your total savings. But yeah, I like having the investment control in my IRA vs. my limited choices in my 401(k).
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