Sometimes, a 401(k) Is the Wrong Choice CNBC News Online (01/09/02) Vol. 29, No. 26 p.1; Anthony, Joseph
People often make the mistake of believing that their 401(k) plans will accumulate enough to carry them through retirement, says Joseph Anthony, who offers the following reasons why people ought to look beyond tax-deferred accounts to save money. One, you are not going to get special tax treatment for all of your capital gains. Two, you are going to have to pay taxes in retirement. Three, you could be in a higher tax bracket in retirement than you are now. Four, depending on your employer for both the health of your retirement nest egg and your job may not be wise. Five, you may have better things to do with your money.