Drunkle has a good point… there is some uncertainty with the future of tax rates. If you want to hedge against this risk some employers are now offering Roth 401k.

My wife and I earn over $200k per year. That places us in the 33% federal tax rate. By contributing to our 401k’s our AGI comes in at about $190k, dropping us into the 28% federal tax rate.

Simple example…If we were not contributing, $1,000 pretax would become $667 after tax. By leaving it in the 401k, I essentially just get a 50% return. Also, if I invest my $667 and get a 10% return, I make $66.70. The same investment in the 401k where i have $1,000 returns $100.

You’re not going to get rich with your 401k plan but it could prove to be a good back up plan. You can try to get rich doing something else, but just understand that there is a tight relationship between risk and reward. For every one story of success that you hear, there are ten failures.

Oh yeah, an ADR is an American Depository Receipt. It allows a foreign company to raise capital in the US. And in order to list on a US exchange, they adhere to our rules.