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Financial Planning / Foolish 401(k)s

URL:  https://boards.fool.com/i-really-dont-think-tax-efficient-is-a-factor-12321338.aspx

Subject:  Re: index funds in a 401K Date:  4/1/2000  11:50 AM
Author:  mphipps Number:  7231 of 26295

I really don't think tax efficient is a factor. ImO the factor is yield. S&P Index should provide the support level of strong 401k. The average Return on Investment in S&P 500 is solid.
So at the end of the 1 year, 5 year and 10 year period you are looking at ROI and S&P 500 Index give you solid returns.
But you are correct, funds that have large capital gains distributions are better in 401k or IRa.

And if you want to develop a startegy were you do what you suggested, it might be interesting to see the results.
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