Big assumption that you will receive 50% match at least. Seems like the return benefit comparison is not fair if you assume 0% match + high fees. Context on proper retirement planning for variable salary ranges is necessary as well (when it makes sense to use Roth vs pre-tax, backdoor strategies, IRAs, etc.). Limited investment options in plans are probably another deterrent. Investors today are much more interested and involved in their investments - being able to invest in any possible individual stock/fund in a brokerage account or IRA is much more enticing than only picking from a set of target date funds. Overall, 401ks provide a huge benefit, but I don’t think the argument of “good or bad” is as black and white as the industry makes it.
When I was a child, I was always interested in what the adults were talking about. We learned by listening to what they had to say about any given subject. It was how we learned by those who had experience.
This habit never left me although I was an adult. I listened to what older people had to say. I may not always agree with them, but one bit of occasional wisdom is worth a lot.
On this subject, it is more what I didn’t hear from older people. Only one person I met over the decades told me that you shouldn’t bother saving for retirement. That person lost it all due to some reason he never explained. So that certainly can happen in various ways. It is also an outlier as most people do manage to hang on to their retirement savings.
Other than that one person’s opinion, I never heard retirees complain because they wasted their time putting money away for retirement.
My very reason for saving in a 401-K was because of the first reason the blogger stated.
They're a way to get you to delay
spending until you have no energy left
How will I survive when I am old and have no energy left to work? That was a scary proposition for me. I can earn a living when I am young but being old and having nothing is not a good position to be in.
Yeah, taking retirement advice from an inexperienced youngster is not a good policy. Ask the people who are retired. That is just good common sense.
This is why you should fully understand the 401k structure for your specific employer.
Big assumption that you will receive 50% match at least. Seems like the return benefit comparison is not fair if you assume 0% match + high fees. Context on proper retirement planning for variable salary ranges is necessary as well (when it makes sense to use Roth vs pre-tax, backdoor strategies, IRAs, etc.). Limited investment options in plans are probably another deterrent. Investors today are much more interested and involved in their investments - being able to invest in any possible individual stock/fund in a brokerage account or IRA is much more enticing than only picking from a set of target date funds. Overall, 401ks provide a huge benefit, but I don’t think the argument of “good or bad” is as black and white as the industry makes it.
When I was a child, I was always interested in what the adults were talking about. We learned by listening to what they had to say about any given subject. It was how we learned by those who had experience.
This habit never left me although I was an adult. I listened to what older people had to say. I may not always agree with them, but one bit of occasional wisdom is worth a lot.
On this subject, it is more what I didn’t hear from older people. Only one person I met over the decades told me that you shouldn’t bother saving for retirement. That person lost it all due to some reason he never explained. So that certainly can happen in various ways. It is also an outlier as most people do manage to hang on to their retirement savings.
Other than that one person’s opinion, I never heard retirees complain because they wasted their time putting money away for retirement.
My very reason for saving in a 401-K was because of the first reason the blogger stated.
They're a way to get you to delay
spending until you have no energy left
How will I survive when I am old and have no energy left to work? That was a scary proposition for me. I can earn a living when I am young but being old and having nothing is not a good position to be in.
Yeah, taking retirement advice from an inexperienced youngster is not a good policy. Ask the people who are retired. That is just good common sense.