The Motley Fool Discussion Boards

Previous Page

Financial Planning / Foolish 401(k)s


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.
Copyright 1996-2020 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us