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[quote=Anonymous]How fucking stupid are you? You do know that this "tax shield" is actually a tax deferment, right?

There are 401k plans out there that are simply not worth the expected benefit from the different tax treatment. Fortunately this is the exception to the rule, but they do exist. I know a number of people that have opted out of 401ks for very good reasons.

I will admit that for many people maxing out the 401k makes sense, but a blanket claim that everyone should be doing so is Size Or man type bullshit.

Signed 
Finance PhD

[quote=Anonymous][quote=Anonymous]No, I fully understand the tax implications. If fees are high enough and performance is poor enough on tax advantaged accounts, taking the tax hit now and putting the money in a taxable account can y produce superior yield. This is a well known issue. Your grasp of these things is clearly limited (or you run a 401k), and you should not be giving advice on financial matters.

[quote=Anonymous][quote=Anonymous]Blanket statements like this make no sense. Some 401ks are horrible. I was at a place for a few years with very little match and terrible fees. I didn't put a dime in that thing. Good plan at the new job and I max out.

Well, you are ignoring the tax benefits ... [/quote][/quote]

Haha.  You are making quite a few assumptions there...high fees, poor performance, etc.  The fees and performance drag have to be pretty darn high to offset a ~15%+ tax shield.  It would have to be an absolutely atrocious plan - as in world class bad - to not have some level of index fund / general market exposure to make it a 99.9999% chance of outperforming any taxable option when the tax shield is included.  I am quite confident my understanding of these issues would run absolute circles around your clearly elementary understanding. [/quote][/quote]

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