When I checked my 401K investments a few months ago, I found quite a few surprises. After a few years using the services of financial advisers, I decided to move to manage my finances on my own. Some of the investment they picked for me were fine, some were questionable. Many of them had high annual fees, which we know by now will doom you to low returns. On top of it, one of the funds had an outrageous load of 4.75% (meaning that for every dollar I put in the fund, I immediately lost 4.75%).
Luckily for me, the company I work for, EMC, has a pretty good selection of funds. I easily found index funds that suited my goals and complemented my overall investment strategy. You might not be as lucky, as this New York times article shows (thanks BG!).
Still, even with a poor choice of funds, and even with loads and fees, and even with employers who do not match employee's contributions, it's generally best to maximize your contributions to your 401K. The tax benefit alone is worth it. If you can also choose low-cost load-free index funds, you'd do even better. Just go and visit your 401K now, it's been sitting in the dark for too long!
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