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Wouldn't the pre-tax nature of a 401k mean that an alternative investment would need to return ~25% in the first year in order to break even with a 401k contrib
by mikekij 9y ago
Wouldn't the pre-tax nature of a 401k mean that an alternative investment would need to return ~25% in the first year in order to break even with a 401k contribution returning 0%?
I'm not arguing that the market is currently rational; just surprised you've suspended 401k contributions because of it.
- dmoy 9y agoYup, unless GP for some reason can only buy 401k into their own company, rather than some broad-market fund, in which case if they're specifically skeptical about their own company then maybe not putting stuff into a 401k. But yea generally pre-tax dollars are better than any other investment you can reliably make.