By Tom Brennan
Web Editor cnbc.com | 03 Jul 2008 | 01:47 PM ET
Don’t max out your 401(k) contributions, Cramer said. That money could be better spent.
You definitely don’t want to turn down the free money that comes with a company 401(k) match. Cramer’s rule of thumb is to only contribute as much as your company is willing to put in. If your company will match 3%, then only put 3% of your pay into a 401(k).
But too often these retirement options have high management fees and your investment choices are limited. That’s why Cramer recommends that any extra money you have beyond a company’s match go into an IRA. They get the same great tax benefits of a 401(k), they cost less and grant you more freedom of movement...."
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