If you’re like most people, you have probably heard the rumors that 401ks are bad for your retirement savings. But is this really true? In this video, I’m going to share with you the shocking truth about 401ks – they are actually awesome!
If you’re curious about how 401ks can help you build wealth over the long term, then this video is for you. I’ll show you how 401ks can help you save for your future and grow your wealth over time – no matter what the rumors say!
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These 401Ks, Roths, and other retirement programs do have their own issues.
1. You cannot use the money without penalty until age 59. As I am getting older I feel my health is becoming a huge decider in what I think I should invest in. I am ~30 and statistically my odds are 84% to make it to age 60.
2. The investments you can choose from these investment companies through your employer are gate kept by the investment company like Vanguard. Essentially companies pay vanguard to put their index fund in the list of options to choose from. Is that really a good way to choose investments?
3. These retirement companies have hidden fees for simply using them.
4. The money in your retirement account is not liquid for other investments like investing during a recession or real estate dip. This is a huge opportunity cost that you could miss.
All the points above are only valid if the individual is good at investing their money that they wouldn't put in their 401k or retirement. It is a good investment for most because most people are bad with money and spends it if it hits their bank account. You should ALWAYS match contributions from your employer as well. 100% or 50% gain on your investment right off the bat is unheard of.