Is 401k a scam? Redpill me on this please

lol none of this is good advice

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401k manager charge 100/mo to manage account.
I gave him 90k.
He only returns enuff to cover his fee.
So let your employer pay the fee and only put in whatever they will match.

Kys you fucking retard.

Read your fucking prospectus.
Spenda few hours researching this shit so you don't lose fucking large sums of money.

Contribute up to the match limit, and make sure if you get a chance to pull out you do it. In the meantime manage your 401k in the most conservative fund possibly, ideally a bond fund or money market.

When you change jobs you will have the option of rolling it over to an IRA or taking it out. Take that money out. You will take a 10% penalty and get taxed on the rest. The present value of that cash far outweighs the penalty and tax free gains.

It’s one of the only legal ways to avoid taxation. You’re an idiot to not exploit it fully.

You will never have millions for retirement due to bubble bursts that are programmed into the markets. A 401k will leave you something of value though at your old age that you could possibly “gift” to your progeny while you keep working until you die. Do not try to live off your savings because the government will only help you when it is completely depleted.

are you really this fucking stupid? does nobody hear even understand the most basic level of investment?

it is Republican screwjob cooked up to make people focus less on the fact the idea of a pension has been deleted by looting kikes

Put up to the match and invest any other savings personally. You'll have more choices for investments and easier access
401(k) is named from the section of code describing tax deferral for any profit sharing plans of a business.
Those on top with more disposable income like it since they can put away more money and lower their tax liability any given year. Which is why they match.
People choose to pay taxes on this income in retirement under the theory they'll be in a lower tax bracket then
If your not in a high bracket now, use a ROTH 401(k), pay taxes now, any savings are untaxed in retirement age for two reasons:
You can take money (up to cost basis) without penalty
Hopefully you'll get rich and be in a higher tax bracket when you're older

Why don’t you lay it out for us. Tell me why locking your money away for 30 years with no hope of withdrawing it is a good thing. Tell me how great the government is for allowing you to borrow against that balance only in very limited situations.

My 401k has 3 options
Market stable no risk
Medium risk medium returns/somewhat safe
High risk big returns risky moves
I chose no risk much to the shagrin of my
T rowe investor. He was pushing me to go into medium risk.
I know nothing about this and need help.
Advise me Jow Forums

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Hes not saying take it out. Besides in 40 years a $100k 401k will only get you a bigmac and fries. Money is worth more now than it will be in the future.

It depends on your age. If you are young, invest in a high risk fund. Scale down to medium as you get older and keep in low risk prior to retirement.

Wut m8?
Employer has nothing to do with it, IRS sets up all restrictions
You're right 401(k) is not an investment its a line out together the tax code for special treatment on money put into investments
You realize you choose which funds to invest in right?

Other than that you just threw out buzzwords of wall Street scam while instructing him to do the same just with out the free money(match) or benefits of tax deferral
I hope you die poor

Another one I like is "Employee owned" So people lose money that would have otherwise been their wage.

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what about a (((roth))) 401k?

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Whites in times passed used to pass on their life savings to their children when they die through a will. Now the system is setup so you have to spend everything you have to keep yourself alive in old age until the government will help keep you alive only when you have nothing left to pass on. In the present system you MUST give everything you have to your progeny before you old enough to begin the process of dying.

You can liquidate your 401(k) at any given second if you believe this, the only reason people say you can't is because you'll get penalized (10% non qualified deduction AND 10% going into non qualified account) and it'll show up as income that year and they're not as fucking stupid as you
If you want access to money and tax deferral use a ROTH, it is way more beneficial for younger people who may need emergency funds and I a lower tax bracket

You are correct though present value of money is more than future, however that's why you're earning g interest and dividends on your money

Roll that shit over

Yes
See

Let’s say you put 3% of your paycheck into the 401k
Your employer will then put 3% of their money into your 401k account (that’s called matching -:it’s free money).
When the government calculates the taxes you owe, they are not allowed to consider that 3% of your salary that you put into 401k account. It’s like you never earned it as far as they are concerned.
Now that you have a 401k account, you are allowed to decide how it is invested. You can choose a stock index fund, or bond index fund, or money market index fund.
There are “balanced funds” that take a little of each type.
So a 401k results in you getting some free money.
And it reduces the income that the government is allowed to tax you on (tax benefit).

Try it and report back. You are dead wrong.

>401K is not an investment it's an excuse to get you involved in losing your money on wall street
>it's a scam
>buy your own stocks
>lose money at even a faster rate on Wall St
202720552 proves the old saying " A fool and his money are soon parted"
KYS

PSA: you are not allowed to randomly pull your money out of a 401k. You must qualify for very narrow exceptions, or you must borrow against it. Yes this is even with the penalty. Do not let Jews tell you otherwise; money inside your 401k is not your money, it belongs to Jews

>401K is not an investment it's an excuse to get you involved in losing your money on wall street at a faster rate than normal
The Feds are going to crash the stock market soon, and then the boomers are going to pissed.

This

401k accounts are insured much like bank accounts. Yeah it's the (((government))) that insures it, but it's better than nothing.

Nigga do you even know
dollar cost averaging?

That's not how that works unless you've got a SIMPLE IRA or a solo 401k. Employer sponsored plans are paid for by the employer. Also 401ks are not actively traded. There are rules against that even. So yeah, you're full of shit.

Compounding interest, the only reason the penalty is there is because the government does not want to have to take care of the elderly, save your own money and take care of yourself. Is that what you're arguing against?

And again, use a ROTH 401(k) / IRA you pay taxes on it now but have access to it. Interest accumulated in money is not taxed

go with no risk, since the Feds and Wall street are always going to cheat.

It's you own fault, goyim, since you were greedy, is going to be the mantra.

...so everyone here believes that the U.S. market will be thriving well in the next 20 years or so? I'm blackpilled to the point where I think it would be impossible for those funds to even exist by then.

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I am not and have, against my guidance, done so for many people

Do Roth 401k if you can. You money is taxed now instead of when you withdrawal at retirement. Tax rates will go up in the future. Someone has to pay for poor fat diabetes people.

You may only withdraw a 401k for specific reasons or you are forced to borrow against it. Why you are willfully trying to deceive these poor anons is beyond me.

This was helpful. Thanks.
It really isnt avoiding a tax but you are just delaying the inevitable? The moment you go to retire and use it then the gubmint gets a chunk, amirite?

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I have al my money in low risk money market funds.
I have zero confidence in the stock market, I think it’s sitting on a huge bubble snd I expect it to pop.
I thought that was happening last December, but it didn’t really happen. But it will sometime this year, I think.
But nobody really knows.

Barring a complete market crash (which in itself is probably something we’ll get to see in our lifetimes) the stock exchange is probably one of the best ways to safeguard your money against inflation. When things went tits up in Zimbabwe and Venezuela with hyperinflation, one of the ways people didn’t lose absolutely everything was to put money in the stock market and to use it as a proxy savings account.

I'd rather get all the money back they took off my cheque over the years and invest it in how I see fit.

I think I know how to spend it better than the government.

You are correct, user.
When you withdraw, it wil be taxed as income.

One more consideration, most employers will max out their match at 3%. Some go a little higher. If you dig on your company website, it will tell you how much the company match maximum is.

i work at an assest management company. youre a total dipshit if you dont nt contribute at all and slightly less of a dipshit if you do minimum to get a the match only. you should put as much as you can afford until you hit the legal limit.

the earlier you put money in, the more time it has for growth.

Thanks again. It is 3% at my company too.

Chang here. Let me teach you some math white boi. If your employer matches your 401k plan, you'd better invest part of your salary in it. The more you invest, the more your company will donate. That's free money. My company literally doubles my own investment LOL.

btw 401k plan is untaxed. You can invest more in the stock market.

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You do not have to pay a penantly for hardship withdrawals, there are a number of qualifying reasons. You do have to pay income tax you were exempted from if you withdrawal before 59 1/2

It is entirely your money, you were either lied to by the fund company because they knew better than you, didn't want to give it up or just too stupid / confused about the whole thing you just gave up because they were going to keep it from you anyways!!!
It's just takes a call senpai

When you change jobs, you can “roll over” your 401k account into your new employers 401k, and it is not considered a withdrawal. No taxes, no penalty.

>go with no risk, since the Feds and Wall street are always going to cheat.
Even the "no risk" funds are traded in American FEDERAL dollars. If the feds are going to cheat anyway, how does "no risk" even make any sense.

Also what is a Norwegian even doing in this thread, your government gives everything to you for retirement because of your taxes anyway.

This is true. If your company matches 3 percent than its basically free money. Taxes aside, it's a win win for you.

>muh taxes and my slave owner contributes.

Yea only if and until you are a slave till 65 but up markets never last that long.

Yep. Scam. Meant to lock you into the stock market so a. it doesn't crash so hard when insiders pull out and b. there is something there for the insiders to steal before you have a chance to even see what you have lost.

It's no more of a scam than social security. I dont have a 401k plan because it's my money and I already live paycheck-to-paycheck. I'm not going to live long enough to retire comfortably anyways.

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>I'm blackpilled to the point where I think it would be impossible for those funds to even exist by then.
If the stock market really tanks it takes the economy with it. Retirement will not be high on your list of priorities, subsistence will be.

>somehow only end up having 100k in a 401k after 40 years
If I worked for forty years and never made a dime more than my current salary, at my current rate I’d have over six million in my 401k

I don't think Roth iras are a wise decision for two reasons. By being taxed not the effect of that tax compound over time. Each initial cent taxed was unable to compound into more cents. I'd rather a dollar turn into ten and be taxed down to seven than a dollar be taxed down to .80 cents and then turn into 6.40. Secondly I dont trust the government to not rewrite the laws when they see all these "untaxed" sheckles people are collecting in retirement and will be desperate for money and tax you again, making it a double tax.

By being taxed now*

No one ever saved their way to wealth. Ignore 401k, invest in businesses that return profit and increase your income. You can earn more money owning a gas station than you will ever "earn" from employer matching, compound interest, dividend returns, and all of the other bullshit tricks they use to convince stupid people to give them their money.

I see we're in the same realm, customer service Wal-Cuck man.

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you're not blackpilled, you're just dumb.

you can take it out when you want to. you can also it out penalty free using the 72t rule.

it's impossible to know if roth's will be better than traditional 401k because we don't know what future tax rates will be.

>No one ever saved their way to wealth.
i saved $1.2m

It depends on whether it’s a traditional (before tax) or Roth (after tax) 401k. Normally you choose what you want.
There are benefits to both depending on your current invome situation, and Roth is usually better.

With a Roth you pay taxes NOW on your income before match. That means that when you withdraw that money later it is not taxed. The benefit is that presumably you’re making less money now than later (pay less in taxes) and you’ll want your money when you withdraw in full without having to pay tax.

The benefits to a traditional are that you don’t pay tax now like you said and you also get a tax deduction now on those funds saved when you fill out your annual taxes in the current year. You will have to pay taxes on any withdrawals later however.

This guy is right about Roths. The biggest question is what will tax rates and what will your situation be in the future when you’re eligible to withdraw.

There is absolutely no reason to withdraw money from your 401k if you don’t need to do it.

>invest in businesses, increase your income
>dividend returns are bullshit tricks
Exactly what do you think stocks are?

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You can take a loan out of your own money if you really REALLY need to. Depending on the market and your loan rate / current 401k ROR it could be a net zero.

Traditionally if you weather the ups and downs of the economy 401ks perform rather well. Just dont retire in a recession.

Look up, Fee Only Fiduciary!
Most of these start with investors having 500k for starters. There are exceptions.

reznywealth.com/

Get on his site and download the 5 pages( I think it is) of info and re read it 5X so you understand.

If it is Not a fee only fiduciary, you are being sold a bag of goods and your on your own!
This includes all Banks, Insurance companies and brokerage firms, etc...

Fee only Fiduciaries manage your money for you and they are legally bound, no iffs ands and butts!!!
Everyone else is lying and no matter what, you have to do the work!

If they say they are a fiduciary, this is Not the same!!!
You MAKE them sign a piece of paper saying they are a Fee Only Fiduciary!
This is the only way to guarantee they are legally working for you!

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Fucking retards. The company gets a tax write off. On the other hand, the employee gets a false sense of security that they are saving for retirement, horseshit. A 401k is managed by firms that use these funds to cover their ass and pump & dump. These 401k are like pools of money to be used in gamboling, they are not ‘investments’.
In the long run (((they))) make money on your money while it is tax deferred and then you get fucked in the ass in a shit investment fun your entire life, paying income tax anyway when you are older.
No matter what you are fucked and with these socialists getting in office, holy hell you are about to get shit on.

Congrats. 1.2m will pay for a year of health care in your old age. I'm not talking about fucking around money, I'm talking about wealth.

Stocks are bullshit versions of owning a business where you make money on selling your ownership, not on your ownership itself. Dividends are low-cost returns that give you the illusion of ownership.

Go buy / start your own business if you want to be wealthy. If you want to retire penniless and sell your house to pay for chemo, then do what the rest of this thread tells you to do.

amazing insight you have there. what do you do with your extra money?

>I'm not talking about fucking around money
how much do you have? lmao

awful advice

Here is what you need to know about 401ks.

Focus on the benefits:
>Employer matched funds.
>Money that goes into this would otherwise be income taxed at your marginal rate. Delaying taxes and allowing that money to grow is a very good benefit.

Scammy aspects:
>Limited investment options.
>Hidden fees in various places that are almost impossible to figure out and take big money over time. Learn how to manage your own investments and you can roll that money out of the 401k and self-manage it whenever the job ends.

In summary, be aware of the scammy aspects, but still participate because otherwise you'll just miss out on matched funds and pay more in taxes.

Right now, less than 1.2m. In 10 years, many times that.

I have two worthless shitsack parents, so I had to pay for my own food and rent at 16. How about you?

depends on your age. if youre young, go high risk and leave it alone. if uoure close to retirement, take it easy so any losses wont hurt

My point is that I dont believe the IRS will honor their word in 40 years and not tax your Roth. We are severely in debt with no signs of it getting better. I believe it is foolish to assume the IRS will let all that money get away from their greedy claws

There are activdly managed funds and ETFs, also pretty sure they aren't FDIC insured. That's only deposit accounts, but Im open to being wrong.

Dont buy the hype. 401ks were only designed so that execs could defer more of their salary from taxes and for employers to get a tax break, and use it as a kike perk, look little guy we offer a four-oh-one-kay with (((company))) match. If you honestly think they were designed for the average working schlub to get rich you need to go kys

>In 10 years, many times that.

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Good advice here.

>picking individual stocks
>thinks he can out perform the market

Investing in a 401k is wise. If (((they))) do not crash the market, you'll be rich at retirement. If (((they))) crash the market, you'll be in the same boat as everyone else. Buy a target retirement fund, set it up so all future contributions go into that fund then never look at it again.

Me
>24
>Delivery driver
>$2500 in life savings
>Live with parents
>Borrow sister's car

How am I doing

ITT no one has the first idea about personal finance. OP you are talking to a bunch of morons just as uneducated as yourself.

You should invest as much money as you can in your 401k each year. Preferably try to hit the annual max. Do this every year until you retire, and you will retire a multi-millionaire. Not joking.

don't ask people here, they are stupid

>Is 401k a scam?

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Its actually good advice kike. Taxes are the lowest they will ever be in anons faggot lifetime, he needs to take his money and invest it in something tangible. Not a fucking piece of paper, not a bit/byte on a fucking ledger entry. You fuckers seem to be buying the jews 401 k bullshit hook line and sinker

Need proof

>I think I know how to spend it better than the government.
While the government (any government) tends to retardedness so do most people. The number of lotto winners that end up broke, or people that had a retirement plan needing to go back to work. Or just people that are nearing the end of their working careers without any retirement plan is vastly larger than the people that do manage their spending and income well.

As a Leaf you have been taking advantage of your TFSA and/or RRSPs? Or is it mostly booze, $1.99 a can energy drinks and so on?

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bullshit and bullshit

>>test my knowledge kike

>leaf links a shitcoin board

Oh look, a wind blew by!

Dunning-Kruger in full effect on this retard. Recognize this folks, do not be this man.

Go read mr money mustache

You benefit from the cheating. Your hitching your horse to their cart.

>Go buy your own business
This is exactly what stocks allow you to do. If you buy enough, you can literally own the business. You seem to be making the false assumption that equity = income, which is to be expected from someone who grew up learning how to be poor.

Not all business make money. Enjoy being the sole proprietor of a gas station when Walmart rolls into town with their own fuel pumps.

This. Just look at history. Again, returns are good if you can weather storms.

The only people that get fucked are people who retire in recessions or just after them. It took several years for things to normalize after the great recession.

You were better off retiring early before it, or needed to commit to working a good 6 years after to get back that money.

The people that get fucked are the ones that save money by "doing without" and "living within their means" just for a bunch of numbers on a statement. By the time they near retirement most will have cancer or some other disability, if not they will have no idea what to do with the money and leave it to their kids who well it taxed the shit out of