Re: 401K (sent from Eudora previously)

[http://dummy.us.eu.org/robert (Robert)]

 > From: "http://www.juno.com/~w1few"; <http://www.juno.com/~w1few>
 > Date: Wed, 27 Apr 2011 18:16:57 GMT
 >
 > If you already got this, ignore this one.  Thanks.

Nope, only got this one.

 > I am enrolled in a 401K at work.  They are initially deducting 3% with a 2%
 > matching from the boss.
 > Questions:
 > 1 How much should I contribute (max is 92%)  (matching is up to 4%)

I think you should figure out how much you were intending to take out from
AIG and probably contribute around the same amount.  Does that seem
logical/rational?

 > 2. Roth IRA vs traditional IRA (ROTH takes taxes now vs later)

You mean Roth 401k vs. traditional 401k?  You'll probably be in a higher
tax bracket right now and a lower one later.  So, it seems like doing a
Roth one would make more sense.

I personally do both, to hedge against both possibilities.  Maybe doing
both for you would make sense, but with more going towards the Roth side
of the equation...

 > 3. The investment choices are stocks , bonds, or mix  (I will go with foreign
 > bonds if possible and US Bonds)

Yeah, I think the bond concept is good.  Do you get a money market fund,
too?  If so, what's its return?  If it's equal or better than the AIG
return, then I'd also put some in there, too.

 > Thanks much for your help,
 > D