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I spoke with the guy from Baird today who said that I'm automatically getting a 20%+ return on my investment because of the pre-tax feature.

Spoken like a true plan salesman. His response is such because he has a vested interest in you contributing to the plan - a % of your money in his pocket.

And over the long-term, you'd be giving that return, and then some, right back paying fees like that. Ask him to provide you with a spreadsheet or some other viewable data that can back up a claim like that.

I'd heed JB's thoughts.



I don't like to tell people they are wrong, but you are.

When you chose to invest in a non-retirement account you pay your income tax and capital gains tax. That is being taxed twice.

When you invest in a retirement account (401K) you don't pay any tax until you retire. Then you pay your income tax. You are ONLY taxed once. And if your tax bracket drops in retirement (or we get a tax cut) you get a bonus.

Before saying someones advice is bad just because they are a salesperson. YOU need to do the numbers.

The fees are high, but those can be changed by educating the employee as to the alternatives.

Thanks (sorry to be harsh)

Michael A
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