Was the 401(k) a Mistake? How an obscure, 45-year old tax change transformed retirement and left so many Americans out in the cold.
Was the 401(k) a Mistake? How an obscure, 45-year old tax change transformed retirement and left so many Americans out in the cold.
How an obscure, 45-year-old tax change transformed retirement and left so many Americans out in the cold.
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Maybe giving a percentage of your income to legal gambling is a bad idea???
What else do I do? Put that money under my mattress?
No, put it under my mattress
A highly diversified portfolio is the opposite of gambling. Don't let the "traders" and crypto bros sour you on the power of conservative investing.
So what I'm saying is: the money you put into a 401k goes to an investment company, that investment company gambles in the stock market.
Regardless of how you spin it, regardless of how safe you think it is, when you give money to someone to use in the stock market you are gambling.
No, diversification makes it not gambling. Not all risk is gambling.
lol....any time you give money to someone else to manage you are gambling.
Making a assumption that your money will increase in value over x is (say it eith me) gambling....otherwise why would those guys in suits have disclaimers saying "you may lose money...not all accounts make money...etc...."
I mean, by all means go ahead, if this makes you happy go right ahead. My point still stands.
It's not an assumption, I understand the risks. I know it will go both up and down. That doesn't make it gambling. What on earth isn't gambling in your eyes?
death and taxes. sure bet.
understanding of risks doesn't cut the mustard... I understand the house always wins. Understanding the odds in blackjack and understanding the odds in the stock market still makes you a gambler...an informed gambler, but nonetheless a gambler.
So if 401ks are bad because they incentivize gambling, what's the alternative? You have a uselessly broad definition that seems to lead people only to a guarantee of losing purchasing power through inflation. Better guarantee a loss than "gamble" with strong evidence to support your risk I see.
Saying "the house always wins" about things like index investing is hilarious.
Quoting me and saying "super specific 'safe investment' type of investment is 100% safe and will always make money.
https://www.thetimes.co.uk/article/pension-fraud-stolen-uk-expat-brite-advisory-mark-donnelly-jjh5cr7mk. theyse guys aint laughing
When you give anyone money to "invest" you are gambling that you will make money.
???
!!!
You can direct your funds to money market accounts usually as well
No, the article is actually saying that people have not done this enough. Workers were better off when their employees did so for them and mandatorily (a pension system), and allowing folks to self manage how much they put away is what has led to 49% of folks within 10 years of retirement having nothing to retire on.
There are very safe ways to invest. Doing it poorly and a lot is a gamble; taking a little time to understand different investment vehicles and portfolios and the risks associated with each allows you to earn interest at literally any level of risk. An example, money market funds earned 5%-8% on 2023, and it is literally impossible for MMFs to go negative. Certified deposits offered up to 5.5% guaranteed returns. The benefit of pensions is that employees don't need to learn all that and make those choices in order to benefit from them.
Putting a percentage of your income in the stock market is a very good idea. Even if you're a conspiracy person and you think a mysterious "them" controls the world, "them" are rich people who own stocks. They will make sure the value of stocks go up.
If you're not a conspiracy person, just look at history. The value of stocks always goes up in the long term, and you hold retirement accounts for the long term.