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His employer makes no matching contributions. What should we be doing instead? Do you think we should be putting our money somewhere else?

If I were in this situation I would first max out a Roth IRA. I would then take any additional avaiable investing money and I'd contribute half of it to the 401K, and half of it to a taxable account. The taxable account could be used to buy low-cost index funds at Vanguard, for example. The important thing about a taxable account is to buy-and-hold to take advantage of long-term capital gain tax rates.

The higher your marginal tax rate, and the longer the time to retirement, the greater the benefit of a 401K over a taxable account, but a taxable account affords more withdrawal flexibility and control over taxable income in retirement, hence I see benefits in having bth. Funding a Roth first is a 'no-brainer'.

2old
(who doesn't like to put all her eggs in one basket ;-)
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