<prompt> Human: I already max out my Roth IRA and contribute to 401k up to the full match but not more. In terms of this subs common retirement saving advice, the next step is to max out my 401k--before I even think about non-tax-advantaged investments. My question is, what if said 401k sucks, as in with a pretty crappy expense ratio? Is it not better to take any money beyond max 401k match and put it into a Vanguard taxable investment, like an ETF or something? And just to be clear, nothings actually taxed until its sold likely at retirement, right? Thanks a bunch guys.  <response>: Ive run the numbers for many people, and avoiding income tax is usually more important than avoiding fees. It depends on your tax bracket and the ERs, obviously, but also on how long youll be with the company or how long until you convince them to offer better funds in their 401k plan.If you want to see graphs like these just give me your tax bracket, term of employment, expense ratios, and expected return. Ive shared some code in past comments and described things a little more hereAs a very rough estimate, divide your current marginal income tax rate by the lowest expense ratio in the 401k plan. If youre going to be with the company less than that many years, an unmatched 401k plan will still come out ahead. If youll be with the company longer than that, taxable investing might make sense, but there are some other factors to consider. 