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You still have to be pretty pessimistic to think taxes will rise faster than your rate of return!



The point of 401k is that you compound the growth on the deferred tax money, and then pay much less /present value/ tax once you retire. Index funds and high yield bond funds give you low overhead with almost no "gambling" element. Drawbacks: Limited maximum contribution, very long deferred gratification, vulnerable to future policy changes.


Exactly. I keep all of my 401k in index funds, same with my Roth IRA. I have other non-tax-advantaged accounts I use to investing in individual stocks.




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