Please give y’all feedback.
Reasons why I am not a fan of 401k’s.
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It is locked in till 59.5 and if you need money for an important event such as a downpayment for a house or need capital to start a 99.1% pure meth business but most of your money is parked in a 401k, get ready to lose hella cash and taxes pretty much instantaneously. Not fun.
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Vested time. Some companies have a vested time period where the “free money” isn’t actually yours till a certain number of years. What if you leave the company or are laid off. Well there goes your “free money” guys. No such thing as a free lunch.
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Hidden maintenance fees that are not really visible to you unless you go looking for it. Trust me, I’ve done it myself.
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If you pull out money from 401k after 59.5, yes you will not pay a penalty anymore BUT if you are in a higher tax bracket than you thought you’d be, then you will be paying hella taxes anyways with potentially measly returns on top of that.
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Flexibility in investments is important to me. I should be free to invest any stock, index fund, or etf I want. What if I don’t like the target date funds or the mutual funds provided? Why should I be forced to invest in something I am not comfortable with?
Anyways there’s probably more I could write but this is off the top of my head.
Submitted July 14, 2020 at 10:07PM by joeroganthumbhead https://ift.tt/3iY5DMZ
