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Kecpa wrote:
>> I start a new job tomorrow morning. My new employer
>> offers a 401K but no matching. All of the funds
>> available have a *minimum* 3.5% front end load.

TMFPixy wrote:
> You have to run the numbers to be sure, but on the
> surface and in the absence of any employer
> match, it seems you can do better for yourself
> elsewhere.

Tiddman wrote:
>>Actually I strongly disagree with TMFPixy. The 401(k) program is a great way to set aside money
without taxes. The max 401(k) contribution this year is $10,000 whereas the max IRA contribution
is $2,000. Deducting it right from your paycheck before you even see the money is a great way to

Kecpa, I would have to weigh in on the side of TMFPixy on this one. You really have to run the numbers. Again, I would refer you to Robert Sheard's points on poor performing 401(k) options. As he notes, " may not be in your best interest to continue contributing to the plan." Or, in your case...begin contributing to the plan.

His article is at --

At my employer, our mutual funds trail S&P Index Funds by 42% over the past 4 years. Clearly it is in my interest to get out of our 401(k) unless an index fund is made an option to us.

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