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My company recently switched 401K administrators. The new administrator works with Charles Schwab for its investments and also offers something called a PCRA (Personal Choice Retirement Account). With my PCRA I can direct my 401K funds into over 1000 mutual funds or I can take my 401k funds and actually invest them into listed stocks (AMEX, NASDAQ, NYSE). Is this a good way to invest your 401K or should you keep your 401K money in funds managed by others? In other words...should I utilize my 401K savings to invest in the market if I have the ability to? Any thoughts?
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That sounds like a good deal. I wish my 401k had that much freedom. You want to put your money where it will make the most return. Depending on the fees that you get charged and the ability to change your selections, you want to be in stocks. You could do a FF4. The common theory about mutual funds on this board is an S&P Index fund should be the only one you consider. But once again, you should do what lets you sleep the best at night.
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Money in a 401K is just like money in an IRA or taxable account when it comes to Stocks vs. Funds:

http://www.fool.com/DuelingFools/1998/DuelingFools980527MF000.htm
http://www.fool.com/DDow/1998/DDow980327.htm

Patrick
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