Should you invest in your companies 401K? April 18, 2014Posted by shaferfinancial in Finance.
Tags: 401K, 401K failure
I regularly receive calls about and discuss with folks this question. Often the answer comes down not to mathematics but emotion. I have posted regularly on why I think the answer should be no, but the answer is usually long winded, rational, and mathematical.
So here it is in a brief statement:
By investing in a company 401K you trap your money in a bad investment for retirement income.
Key words are TRAP and BAD. I have long posted on why mutual funds are bad investments for retirement income. The rules for getting your money from a 401K are so onerous as to force folks to leave jobs in order to get their retirement accounts.
End of Story.
Give me a call if you want to put your money in a better place.