Is a lousy 401k still worth it?
Can someone explain to me how I might figure out whether my pitiful 401k is still a better option than the after tax alternatives?
I'm in the 28% tax bracket, my employer offers no matching contribution and the S&P 500 Index fund offered by the 401k provider has a 1.25% expense ratio.
My 401k provider buries their expense ratio information pretty well and I only today found it. I'm flabbergasted (or maybe I just want a reason to use that word) when Vanguard's S&P500 index fund has an expense ratio of 0.18% to see the same type of fund with a 1.25% expense ratio.
But what's worse, it's the lowest expense ratio in the list!
Wondering if I should ditch the 401k entirely and start investing after tax only. Need to see the math though.
If you try to fail, and succeed, which have you done?