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Am I right in my thinking or should I stop contributing and roll my money over to somewhere else?

It's going to depend on what your investment options are in your 401(k). If all of the choices available in your 401(k) perform poorly, it won't matter that the money invested was tax deferred.

If you have the same choices available to you in your 401(k) that you would choose in a self-managed account, the question then comes down to what your tax rate is now vs. when you retire and start withdrawing money from the 401(k). If your tax rate when you retire is the same as it is today, and you have the exact same investing options available to you, it won't matter whether the money is invested in the 401(k) or an IRA or a taxable account.

The problem with many 401(k)'s (like mine) is that the investment choices aren't that good. If that's the case, you're better off investing the money in your own taxable account and moving your existing 401(k) money to an IRA. Of course you have to decide for yourself whether the investment choices available in your 401(k) are "good" based on your investment goals.

Wot
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