My company matches 4% of my income (112.5k) to my 401(k). Of the fund options the best deal has annual operating expenses of 1.91%, the worst is 2.4%. Seems awful.
Right now I am maxing out the 401(k)(Roth), and maxing out my IRA. I also have 100k in student loan debt, which I pay $1500/month on now. I am thinking about reducing my contributions so that I just max out the employer match, and just putting the extra savings into the loan.
My student loan is at 3.9%. I figure the money in the 401(k) has to get around 6% interest just to make it a better investment than the student loan. Of course that doesn't account for tax free compounding.
I could also switch my contributions to pre-tax, and at least get some more savings now. Maybe put those savings into the loan payments.
I suppose there's no sure answer to this since nobody knows exactly what the market will do. But any advice is appreciated.
Thanks!