You folks are smart, right?

[cerilian]

So you tell me: The 401(k) has been completely discredited by recent events, hasn't it? I read that the average 401(k) lost in the last six months everything it gained in the last ten years and more--proving that "saving for your retirement" and "playing the stock market" should never be synonymous. Now my work is trying to sell me on the 401(k

Comments

[cthulu_bunny]

I've always felt that a 401k is a bad risk. There's just too many catches to the whole thing to really make it a "benefit".

I'd rather just make more money. :)

[cerilian]

This is what I almost said to my boss when she asked what I would do about my retirement instead--either you'll pay me more, or someone else will.

[cerilian]

Just got mail that an old 401(k) I'd forgotten I ever put any money into is now an IRA worth about $1000. Investing and forgetting works out okay, apparently. Now to pay some bills, once they email me the damn forms (checks email 50 more times before lunch is over).

[greychild]

I've never trusted the 401(k). I've never put money into any of them. I'd prefer to put money into high yield savings accounts, such as CDs, or possibly an ING account.

Just my two cents.

[cerilian]

This is what I am thinking. Of course, bein' poor folk, I'm still starting over again every time I turn around, but I'm expecting a raise, so maybe *then* I can actually have some extra money to do this with.

[greychild]

Conversely, you could just give me your money. I promise to spend it only on the things that I like! :)

[cerilian]

A tempting offer, you do have pretty good taste . . . :P

[deltablues]

The reason I'm posting a million years late is your facebook post about livejournal comments.

I wanted to make sure that you know a 401(k) is just a type of investment account where you don't pay taxes on your money upfront and (usually, if they're nice) your employer will match you with free money to put into one. You're right that most people do fill their 401(k)s with stock-heavy mutual funds, but you can also just buy bond funds which are pretty much a sure thing.

The benefit over buying bond funds or cds through a 401(k) instead of a taxable account are just that your employer probably matches your contribution (and it's very silly not to take advantage of free money from your employer) and the money you put into the account is not taxed as income up front.

This is interesting timing since I just got my quarterly IRA statement. I lost $1500 yay!!! Most of my money is in stocks because I'm young, and that's what they told me to do!

[deliciouspear]

We are soooooo glad Jordan cashed his out instead of rolling it over when he he left wizkids! If he'd cashed out even a month later it would have been worth about $2000 less.