My 401k employer match is only $500/year. How much should I put in 401k/yr?

Seems like I can get much better return by investing after tax $. But how about long term return in 401k vs after tax $ investment?

I would put enough in your employer's 401K to get the free money. Look at their optional investments and find the one that fits your needs.

Then I would look seriously at a Roth IRA. You have more flexibility in a Roth than any 401K I have ever seen. The Roth's growth is tax free, when you take it out after 59 1/2, it is tax free, and if you do need to get to the amount that you contributed (your principle), you can do so without penalty. Look into a Roth IRA at many different locations: Brokerage firms, through financial planners, through banks, etc. Do not listen to the first person you talk to. Read, study and question so you can build your knowledge.

Never look at an annuity. Do not buy annuity unless you just want to help the annuity sells person. I don't care what they tell you or the promises they make, walk away when they say annuity.

Now if you are looking to invest more than the Roth will allow plus more than is needed to get the $500 from your employer, the find a fee only financial adviser.

The decision on before tax vs. after tax investing is a complex one.

It depends on your current tax rates, future tax rates, investment returns, long-term vs. short-term gains and investment horizon. The added wrinkle is whether you will have losses to offset. At the end of the day, the answer will vary plus some of those variables are based on assumptions you really have no idea about (e.g. future tax rates).

Generally speaking if you are investing long-term with mostly long-term capital gains, you are better off investing after-tax (assuming low capital gains taxes persist) It also allows you to take losses on investments. However, you should probably also invest some money in a 401K. Above all, you should put in the $500 to get the "free money" your employer is offering. You might want to contribute more because the 401K is especially useful for investing in asset classes that generate a lot of highly-taxed current income. If you plan on allocating money to fixed income or real estate (REITs), I would suggest that you do so through the 401K.

It's generally 10% of your gross income but if your 50ys old or older the government allows you to put an additional $4,000 to $5,000 per year.401ks which are employer based plans do not give you the option to choose the investment company the options are limited and if you are able to invest on your own you probably could find a higher return but because all proceeds put into a 401k are tax deducible and remain so until you make withdrawals this could represent a much higher return verses investing your money outside the 401k.The higher the tax bracket the more you will make with the 401k.

You never get your 401k
only 35% of people recieve their benefits
Invest in stocks, its the only way, no one does, but its the way!!!
Or buy property!!!