Why is a 401(k) a bad idea? Why don’t rich people use them? And seriously, are they worthy of being called a scam?
There’s more than a few reasons that I think 401(k)s are a bad idea, including that you give up control of your money, have extremely limited investment options, can’t access your funds until you’re 59.5 or older, are not paid income distributions on your investments, and don’t benefit from them during the most expensive period of your life (child-rearing years).
Did I also mention that your 401k account value may plummet—it happened in 2008 and could happen again. [Read more…] about Why 401K’s Are A Bad Idea