Yeah, I'll max it out if I think I can. Even though I now live in my truck, I still have a few bills.

Thanks again for the help.

I like DRIPS. 30 yrs investing, mutual funds reap few rewards. Stocks, good stocks, yield best. just my opinion.

Sure, but my 401K is pre-tax AND the company matches 50%. So, there's an immediate return on my investment.

I thought you said the company matches 50% of the first 3%? Figure in inflation, or what ever, the value of your dollar will be worth less in 20 years. Mutual funds are slow grow and what value they gain they lose quickly due to many factors. Just my opinion.

I don't think inflation will get above 50% and I get that just for putting my money in. If it does, we're all in trouble. But, there's also what ever intrest I gain. Plus, it's pre tax. 401K is the best tax shelter around for the little guys.

This was a very interesting thread. Leigh has given you excellent advice. I expect that you will wish to participate in the plan and max it out.

As far as investment is concerned you will still want to check the fees. The benefits coordinator at work or the funds liason can assist with that.

To choose which funds to invest in is also an important decision. At this time in the economic cycle and with the world economic situation, you would be wise to consider that interest rates are likely to rise in the next few years and that the bond markets will be adversely affected and bond funds will get dragged out and shot.

I would expect that a mix of equity funds might be your best bet. The investment climate in the US may be improving and you may find even better growth possibilities within small cap and midcap growth or funds investing abroad in areas where economic development is likely to be best.

Speak with any friends and family you trust and gather opinions, speak with your benefits coordinator - they're free and likely have your best interest in mind. Educate your self on investment at the library. I can recommend Jeremy Siegel's books: "Stocks for the long run" and "The future for investors" as places to start but there are many others.

P.S. by "fees" above I mean to include the expense ratio which is the
aggregate costs of owning a fund. This is distinct from the costs of
buying a fund, which are the sales loads.

see

http://www.fool.com/school/mutualfunds/costs/ratios.htm

The nifty thing about the expense ratio is that it wraps all these
various costs and expenses into one number so that you don't have to do
a lot of math. Currently the typical expense ratio for an actively
managed mutual fund is about 1.5%, and that number has been going up
lately. With an expense ratio of 1.5%, a mutual fund is cutting itself
in on 1.5% of the total money in the fund every year. That's whether
there's a good year or a bad year for the fund.

Helpful stuff to know.