Your 401(k) Is Out to Get You
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.
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#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!
#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
#3 Mar 29, 2013
But research will turn up very good IRA management teams, i.e. Fidelity, Signature Bank, Vanguard...
Also of interest:
Since: Feb 13
Mandaluyong City, Philippines
#4 Apr 18, 2013
You need to know the background of the company you entrusted your money.
#5 Apr 18, 2013
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.
#6 Jun 10, 2013
401k Valuations With Aloha
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