Bill,
One aspect of the 401k that you have forgotten is that many employers match  
their employee contributions up to a certain percentage. This to me is free  
money. This also happens to be one of the few ways that many people, including  
my wife and I, are able to accumulate a small fortune over a long period of  
time. I am not a financial wiz, nor do I want to be one. I have found better  
ways to use my time. Drinking and sailing come to mind.
We have been putting the maximum amount allowed by law into the 401k for  the 
past twenty one years. It was hard when we saw friends and co-workers  
driving fancy vehicles, buying new homes and we drove used vehicles and had  modest 
living quarters. Many of these people today have no savings, still owe on  a 
second or third mortgage and have car loans that would choke a horse.
We look at our current nest egg and other investments and we're looking at  a 
good chunk of change. Odds are that we will never spend the principal and it  
will only continue to grow.
I am strongly in favor of 401k's, especially for a long term investment.  
It's called security.
 
Rummy