The 401(k) [403(b), etc.] Trap

by John | Jul 9, 2016 | 1-Growth, General, Investing

Where I’d like to see our company’s 401(k) go.

I used to think our company’s 401(k) program was a great deal . . . for our employees as well as our company. Now I’m convinced it is a raw deal. Especially for our employees. (Though I have serious reservations for the company as well. But that’s for another time.)

Sadly, so far, I’ve been unable to convince the management team to get something better. And, I’m afraid, too many of our employees are enamored of the program as well. (I’ve been told: “If you didn’t have a 401(k) plan, I wouldn’t have come.” —And this from a financial person who ought to know better!)

So let me tell you what I have learned in the last couple of years that has turned me so strongly against the standard, government-approved, defined contribution plans. . . . (more…)