Skip to main content
No. of Recommendations: 0
Okapi, you wrote:

<<I'm eligible for my company's 401k now. They match up to 4% so it's a given I'm going to put that
much in. I'm confused about whether I should put more in. There's no index fund option. The
closest I can see are Sequoia and Fidelity Growth & Income, or my company's stock (Disney).
Both lag the S&P by a % or so from my initial research, Disney have overall performed better,
though its stock's in the ground now.

Does it make sense to max on those or to use my after tax income to do something else. I've read
the Fool guidelines about calculating if you can get a better investment somewhere else, but I'm not
sure what to use as the better invstment benchmark. The Fool 4? One of the higher mechanical
growth strategies?>>

Like in your case, my employer does not offer an index fund option and those mutual funds that they offer are trailing the S&P 500 48% of the time by over 9% annually during the past four years. While several of us at work are trying to encourage additional options such as an index fund, we are thinking about taking our
money outside of our 401(k) until improvements are made.

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." If our options don't improve at work, I will be taking my money out soon.

His article is at --


Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.