I have a horrible 401k plan, with high expenses.  Should I stay with it or move my money elsewhere?
2%? I would put in just what it takes to share in the profit sharing, not a dime more. My S&P fund cost is .02% (edited, as it dropped to .02 since original post), 1/100 of the cost of most funds you list. Doesn't take too many years of this fee to negate the potential tax savings, and not many more to make this a real loser. The first question is essentially asking for specific investment advice which is off-topic per the FAQ, but I'll take a stab at #2 and #3 (2) If my 401k doesn't change before I leave my job (not planned in the   near future), I should roll it over into my Roth IRA after I leave due   to these high expense ratios, correct? My advice is that you should roll over a 401K into an IRA the first chance you get (usually when you leave the job). 401K plans are NOTORIOUS for high expense ratios and why leave your money in a plan where you have a limited choice of investments anyway versus a self-directed IRA where you can invest in anything you want? (3) Should I still max contribute with these horrible expense ratios? If they are providing a match, yes. Even with the expense ratios it is hard to beat the immediate return of an employer match.  If they aren't matching, the answer is still probably yes for a few reasons: You already are maxing out your ability to contribute to sheltered accounts, so assuming you still want to sock away that money for retirement, the tax benefits are still valuable and probably offset the expense ratios. Although you seem to be an exception, it is hard for most people to be disciplined enough to put money in a retirement account after they have it in their hands (versus auto-deduction from paychecks). As to the rollover question.  Only rollover to a ROTH if you have other funds you can use to pay the taxes you will be hit with if you do that.  DO NOT pay the taxes out of the funds in the 401k. If you don't have a way to pay the taxes, then roll it to a traditional IRA.  You never want to pay the government any taxes 'early' and you don't want to reduce the balance. beyond that, A lot depends on how long you figure you will be with that company.  If it's only a few years, or if you and other employees can make enough of a fuss that they move the fund to someplace decent (any of the big no-load companies such as Vanguard would be a better custodian), then I'd go ahead and max it out. If you figure to be there for a long while, and it looks like someone is in bed with the custodian and there's no way it will be changed, then maybe look to max out a Roth IRA instead.
Specifically on the subject of maxing out your 401k, there are several downsides: The employer match usually only applies to the first 6%. Some employers offer no match at all. You listed the match as a pro, but I think it should be pointed out that you can usually get this benefit without maxing out your plan. The investment options are limited. Usually there is at least one fund available from all the common investment classes, but these may not be your preferred funds if you were able to choose for yourself. Fees can be very high. If you are working for a small to medium size company, the fees for each fund will often be higher than for the same funds in a plan offered by a large company. Fees are usually related to the dollar amount of assets under management. Each person has a different tax situation, so if you are single and making 6 figures, you might still be in the 25% bracket even after maxing out your 401k, but the same person filing jointly with a spouse that makes less could get down to the 15% bracket with a smaller contribution. I meet my retirement savings goals without maxing out the 401k. As long as the amount is above the employer match amount, my second priority is to funnel as much money as possible in to my IRA (because I get lower fees and better investment options from Vanguard). And this tells me you have little to no understanding. I have LIVED this life, I am black, from an inner city, my father is a deadbeat and my mother was diagnosed with MS, leaving her disabled until she died before I graduated from high school. My grandmother raised me while trying to care for a daughter that couldn't walk and another daughter struck blind by disease. Without public assistance, I wouldn't have been healthy enough to get a scholarship to a very expensive boarding high school, and really isolate myself from the shit around me. i have cousins who died living the gangster bullshit life, I know this world from seeing it. I make a fairly decent amount of money now, why, because when I couldn't find a job, I could still eat on food stamps and go to a free program to qualify for the government to pay for my IT certification. So, seeing as I KNOW how the system can be used to get to a better place, make a goddamn argument that your idea works better, not how you feel things should be. I make me decisions based on what I've seen, I have known women shafted by circumstance struggling to be able to work because they need a specific number of hours to ensure they can have child care so they can work at all. I have tutored adults that never graduated high school because they had to drop out and work years ago to help their families afford to live. I have used medicaid to help with my horrible episodes of depression, gotten treatment my family alone could not afford. I have watched my aunt recover from drug addiction using treatment my family could not afford. My grandmother is alive and still helping the down and out in our family due to medical equipment the family could not afford on its own. I do base my decisions on evidence, I have lived the fucking evidence. "What is a good bank to use for storing my pay? Preferrably one that has free student accounts. Can I save money from my paychecks   directly to a Canadian bank Otherwise, can I connect my bank account   to my Canadian account online? Any (almost...) bank in the US has free college checking accounts. If the bank you entered doesn't - exit, and step into the one next door which most likely will. The big names - Wells Fargo, Bank Of America, Chase, Bank of the West, Union Bank, Citi etc - all have it. Also, check your local credit union. Do I need any ID to open a bank account? I have Canadian citizenship and a J-1 visa Bring your passport and a student card/driving license (usually 2 ID's required). What form of money should I take with me? Cash? Should I apply for a   debit card? Can I use my Canadian credit card for purchasing anything   in the states? (Canadian dollar is stronger than US dollar currently,   so this could be to my advantage?) There's some fuss going on about debit cards right now. Some big banks (Bank of America, notably) decided to charge fees for using it. Check it, most of the banks are not charging fees, and as far as I know none of the credit unions are charging. So same thing - if they charge fees for debit card - step out and move on to the next one down the street. Using debit card is pretty convenient, cash is useful for small amount and in places that don't accept cards. If you're asking about how to move money from Canada - check with your local (Canadian) bank about the conversion rates and fees for transfers, check cashing, ATM, card swipes, etc - and see which one is best for you. When I moved large amounts of money across the border, I chose wire transfer because it was the cheapest, but for small amounts many times during the period of your stay it may be more expensive. You can definitely use your Canadian credit/debit card in the States, you'll be charged some fee by your credit card company, and of course the conversion rate. How much tax does I have to pay at the end of my internship? Let's assume one is earning $5,000 per month plus a one time $5,000 housing   stipend, all before taxes. Will I be taxed again by the Canadian   government? $5K for internship? Wow... You need to talk to a tax specialist, there's probably some treaty between the US and Canada on that, and keep in mind that the State of California taxes your income as well. What are some other tips I can use to save money in the California? California is a very big place. If you live in SF - you'll save a lot by using the MUNI, if your internship is in LA - consider buying an old clunker if you want to go somewhere. If you're in SD - just enjoy the weather, you won't get it in Canada. You'll probably want a ""pay as you go"" wireless phone plan. If your Canadian phone is unlocked GSM - you can go to any AT&T or T-Mobile store and get a pre-paid SIM for free. Otherwise, get a prepaid phone at any groceries store. It will definitely be cheaper than paying roaming charges to your Canadian provider. You can look at my blog (I'm writing from California), I accumulated a bunch of saving tips there over the years I'm writing it." "403b plans are used by school districts, colleges and universities, nonprofit hospitals, charitable foundations and the like for their employees while 401k plans are used by most everybody else. I would suspect that a school district etc can use a 401k plan instead of a 403b plan if it chooses to do so, but the reverse direction is most likely forbidden: a (for-profit) company cannot use a 403b plan. One difference between a 403b plan and a 401k plan is that the employer can choose to offer, and the employee can choose to purchase, stock in the company inside the 401k plan. This option obviously is not available to charities etc. which don't issue stock. Your comment that the 403b plan invests solely in (variable) annuities suggests that the plan administrator is an insurance company  and that the employer is moving to more ""modern"" version that allows investments in mutual funds and the like. Forty years ago, my 403b plan was like that; the only investment choice was an annuity, but some time in the 1980s, the investment choices were broadened to include mutual funds (possibly because the 1986 Tax Reform Act changed the rules governing 403b plans).  So, are you sure that your employer is changing from a 403b plan to a 401k plan, or is it just a change of 403b plan administrator from the insurance company to another administrator who offers investment choices other than an annuity? Note, of course, that insurance companies have changed their options too. For example, TIAA (the Teachers' Insurance and Annuity Association) which was the 403b plan administrator for many schools and colleges became TIAA/CREF (College Retirement Equities Fund) where the CREF mutual funds actually were pretty good investments." "With a healthy income its quite possible to contribute too much into 401Ks/IRAs.  For example, if your retired today and had 3 million or so, how much more would you need?  Would an extra million materially change your life?  Would it make you happier if you invested that extra in some rental properties or perhaps a business like a sandwich or ice cream shop where you have more direct control? This kind of discussion is possible as you indicate that you have taken care of your life financially.  It seems at odds with the negative press describing the woefully condition of the standard person's finances.  These articles ignore a very simple fact:  its because of bad behavior.  You, on the contrary, have behaved well and are in the process of reaping rewards.  This is where I feel your ""mental gymnastics"" originates.   Looking to engage in the rental market is no different then buying a franchise.  You are opening a business of your own.  You'll have to educate yourself and are likely to make a few mistakes that will cause you to write checks to solve.  Your goal is to minimize those mistakes.  After all, what do you know about the rental home business?  I am guessing not much.  Educate yourself.  Read and spend some money on taking knowledgeable people out for coffee.   In the end you should understand that although a poor decision may cost you money you cannot really make a bad decision.  Lets say you do buy a rental property, things go south, you sell for a loss, etc....  In the end the ""butchers bill"" is 50K or so.  Will that materially change your life?  Probably not.  The worst case is perhaps you have to work a year or two beyond the anticipated retirement age to make up that money.  No big deal." If they're not matching, and their profit-sharing has nothing to do with how much you invest, then I'd say don't bother with the company 401k at all.  If you need to at least have an account open to get the profit sharing, then contribute the bare minimum. Having your retirement account through your company forces you to follow their standards, choose from their funds, use their broker, etc.  It also means that when you leave the company, you either have to move your money anyway, or else have an account through a company you don't work for, which I wouldn't feel all that comfortable doing anyway. If you open a retirement account through your bank or a private financial planner, then it's yours, and you can contribute what you want, when you want, and buy the securities that you want.  Your account executive is there to service you, not your company. "Thirty thousand in credit card debt is a ""big elephant to eat"" so to speak.  But you do it by taking a bite at a time.  One positive is that you do not want to borrow from your 401K.  Doing so is a horrible idea. The first question you have to ask yourself and understand, is how you accumulated 30K in credit card debt in the first place?  Most people get there by running up a relatively small amount, say 5K, and playing the zero transfer game a few times.  Then add in a late payment, and a negative event or two (like the car breaking down or a trip to the emergency room) and poof a large amount of credit card debt.   Obviously, I have no idea if this is how you got there, and providing some insight might help.   Also, your age, approximate income, and other debts might also help provide more insight.  I assume you are still working and under age 59.5 as you are talking about borrowing from your 401K. Where I come from is that my wife (then girlfriend) found ourselves under stifling debt a few years ago.  When we married, we became very intentional and focused on ridding ourselves of debt and now sit completely debt free (including the house).  During our debt payoff time, we lived off of less than 25% of our salary.  We both took extra jobs when we were able.  Intensity was our key.     If I were you, I would not refi the house.  There are costs associated with this and why would you put more debt on your home? I might cash out the annuity provided that there are no negative tax consequences and depending on how much you can get for it.  Numbers are the key here.  However, I feel like doing so will not retire this debt. The first thing you need to do is get on a written budget.  A game plan for spending and stick to it.  If you are married, your spouse has to be part of this process.  The budget has to be fresh each month, and each month you and your wife should meet.  To deviate from the budget, you will also need to have a meeting.  My wife and I still do this despite being debt free and enjoying very healthy incomes. Secondly, it is about cutting expenses.  Cable: off.  No eating out or vacations.  Cut back on cell phone plans, only basic clothing.  Gift giving is of the $5 variety and only for those very close to you.  Forget lattes, etc.  Depending on your income I would cut 401K contributions to zero or only up to the company match (if your household income is above 150K/year). Third, it is about earning more.  Ebay, deliver pizzas, cut grass, overtime, whatever.   All extra dollars go to credit card balance reduction.  At a minimum, you should find an extra $1000/month; however, I would shoot for 2K.  If you can find 2K, you will be done with this in 13 months.  I know the math doesn't work out for that, but once you get momentum, you find more. How good will it feel to be out from under this oppression next March?  I know you can do this without cashing in the annuity or refinancing.  Do you believe it?" Considering it's all to risky for me, outside of a blind 401k, just having money to try it with is a bigger risk than I'm willing to take.  I see this complaint a lot and my response is about the same every time, if you know of something better, please share, so next time we can make it more realistic.