Your 401(k) Is Out to Get You

Your 401(k) Is Out to Get You

There are 6 comments on the www.theatlantic.com story from Mar 28, 2013, titled Your 401(k) Is Out to Get You. In it, www.theatlantic.com reports that:

Or, to be more precise, the mutual fund company that oversees your 401 plan is out to get you.

There was a period, back in the late 1990s, when 401(k) plans were hailed as the key to every household's financial dreams. Put money in your 401(k), the thinking went, and you will retire a millionaire, thanks to the magic of the stock market, which would reliably deliver 15% annual returns.*

A 401(k) plan is a defined contribution (DC) plan (other types include 403(b), 457, and SEP-IRA plans, as well as IRAs), meaning that participants put some of their income into the plan (along with, in some cases, additional money contributed by their employer); when they retire, they get that money back, along with any investment returns it has earned along the way.

Join the discussion below, or Read more at www.theatlantic.com.

Sheik Yerbouti

Richmond, IN

#1 Mar 28, 2013
Anyone who puts their faith in banksters is an idiot! These sociopaths looted our nation not once but twice and got away with it!
XDR

Miami, FL

#2 Mar 29, 2013
Long term, staying out of the stock market is a fool's errand. Over the last decade most every investment outside of gold has sucked. Go back to the last 20 or more, stocks are hard to beat.

However, I agree with the statements about many 401Ks having dubious management direction and high management fees. Unless the employer is matching your contributions, fuggitaboutit and open up your own IRA.

“It's a Brand New Day”

Since: Feb 06

New Rochelle

#3 Mar 29, 2013
XDR wrote:
Long term, staying out of the stock market is a fool's errand. Over the last decade most every investment outside of gold has sucked. Go back to the last 20 or more, stocks are hard to beat.
However, I agree with the statements about many 401Ks having dubious management direction and high management fees. Unless the employer is matching your contributions, fuggitaboutit and open up your own IRA.
True.

But research will turn up very good IRA management teams, i.e. Fidelity, Signature Bank, Vanguard...

Also of interest:

http://usatoday30.usatoday.com/money/perfi/re...

Since: Feb 13

Mandaluyong City, Philippines

#4 Apr 18, 2013
You need to know the background of the company you entrusted your money.
idiots united

Minneapolis, MN

#5 Apr 18, 2013
dvoact11 wrote:
You need to know the background of the company you entrusted your money.
For the long run you need to know how the millions of free or cheap shares the insiders owns affect your shares that you bought at full price. A bag is a bag unless they throw some change in it and maybe they do throw some change but keep in mind the prices are 24X to thousands times the earnings.
John OScanlon

Kailua, HI

#6 Jun 10, 2013
401k Valuations With Aloha
www.EVAValue.com

Tell me when this thread is updated:

Subscribe Now Add to my Tracker

Add your comments below

Characters left: 4000

Please note by submitting this form you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator. Send us your feedback.

Mutual Funds Discussions

Title Updated Last By Comments
News Your best financial adviser? Start with your em... (Feb '16) Feb '16 Sendtext Error 1
Looking for a long-term mutual (Dec '15) Dec '15 Ekoch1997 1
News Puerto Rico says it cana t pay its $70 billion ... (Jun '15) Jun '15 Kathy Morgan 1
News Greatest mathematical discovery of all time: Wh... (Mar '14) May '15 Andarz Abedini 4
News Organic Consumers Association: Divest Monsanto ... (May '14) May '15 Tomas_W 2
Where should I go to start up some term insuran... (Feb '15) Feb '15 rajkanwar 1
News Kampf and Tobash: Fast action needed on public ... (Feb '15) Feb '15 Joe 11
More from around the web