Originally Posted by Patrick719
I contribute 3% because that's all my company matches. Anyone putting more than the company match into their 401k is essentially throwing money away. The rest of your retirement savings should be going into an IRA. The fees for a 401k are higher and the choices are usually very limited. They fund choices can even be biased if the company is getting a discount to offer them.
You're painting with too broad a brush and here are some reasons why. First, not all 401(k) plans are alike, so fees, investment options, etc. have to be evaluated on a case by case basis. Second, the IRA contribution limit of $5,000 plus the 6% 401(k) contribution you mentioned may be insufficient savings to meet a person's retirement goals. Third, high income earners who cannot access the benefits of Roth IRAs may have access to a Roth 401(k), in which case using the traditional IRA may be equivalent to "throwing money away."
Just some thoughts about why your strategy may work for you, but not everyone else.