From: franklin.bowen@gmail.com
Newsgroups: misc.invest.financial-plan
Subject: Which is best: 401K, ESOP (with 15% discount from employer), Roth, or ... ?
Date: Fri, 18 Aug 2006 07:50:17 -0500
   posting-account=ZJ6jZAwAAADiFbqalVdjmF88C2n-p05l
	processed by UCSD_GL-v2.1 on mailbox8.ucsd.edu;
	Fri, 18 August 2006 05:41:03 -0700 (PDT)
	iQBVAwUAROW3ifl/I4+O31e5AQGA0AIAuo7IV15lpxsAdCp7OPkjHuOHyvd9J983
	Y2rEYNvbY4TZloafUAq2ADn7Tgt9jonrhHks3dDBYTS+WVNUFwT8NA==
	=qRCX

Which is best: 401K, ESOP (with 15% discount from employer), Roth, or
 ... ?

I looked around some but could not find a comparison of these 3
options.  I was going to put the max into my company's ESOP because
they offer a 15% discount on the stock price ("free" money, right?) but
since I have sold all my other ESOP stock in the past, I thought the
401K may be a better choice for me.  Then I realized that I could
choose neither of the company offerings but just add to my Roth IRA or
do a combination of all 3.  ACK!  Too many choices with too many
unknowns!

A list of pros/cons would probably make my decision easier so here is
what I think I know:

401K
Pro: Pre-tax dollars deposited
Pro: 10% penalty makes it 3rd choice to tap
?: Must pay taxes on withdrawl.  *IF* I am in a lower tax bracket when
I retire, this is a Pro.  If I am not or the tax rate is increased,
this is a Con

ESOP
Pro: Immediate 15% return on my money
Con: Dependent on company stock performance.
Con: Easy access & no penalty makes it first choice to tap when money
is needed

Roth IRA
Pro: Do not need to pay taxes on withdrawl
Pro: 10% penalty on withdrawl of gains (not principal), 2nd choice to
tap
Con: Taxes already paid on deposits at real tax rate.  This would turn
into a Pro if the income tax rate is increased.

Pointers to information, additions, corrections, and comments/opinions
greatly appreciated.  Thanks!