Are you a sucker to invest in a 401(k)

[I-luvmoney]

Are you a sucker to invest in a 401(k)?

One theory making the rounds these days holds that 401(k)s are tax traps. Here's why that's wrong.


(Money Magazine) -- As a Money reader, you're likely well aware of the wonders of a 401(k). You don't pay up-front taxes on the money you contribute, and you don't owe taxes on your investment earnings until you withdraw the cash in retirement.


read here http://money.cnn.com/2008/02/20/pf/r.../index.rym.htm

[kst$]

My husband has stock options where he works I don't really like it as well as 401K It doesn't seem as stable and reliable to me.. It goes up and down to much to keep me confident in it. Thats just my opinon.

[carol b]

I like the 401K but you really do need to watch the statements and see if your making money. I switched my money around and it helped. How do the stock options work I have never had the opportunity. Just wanted to know.

[kst$]

One quarter you are up and the next you are down its flexuates all the time..Its not stable enough to suit me. I would rather it be a 401 I'd pay the taxes at the end and be happy.

[javie$]

It is a scary thought but my money for retirement is all invested with the stock market up and down it does make me nervous but my consultant asures me that it will be fine. so well see

[carol b]

As I understand when 401k money is taken from your paycheck it is pretax and you claim the interest at tax time. The tax part comes when you withdraw money. Check into it if you decide to invest some money that direction.

[javie$]

I wondered how that worked thanks for the information.