Is a 401k a Scam? The Truth About 401k Investments

In this clip, Ian Dunlap discusses the common misconception about 401k investments and addresses whether a 401k is a scam or a viable form of investing. Discover the truth about 401k investments and learn about the potential return on investment from investing in a 401k.

Hashtags: #401kInvestments #Investing #MarketMondays #RetirementInvestments #FinancialEducation

[KingAngelLife]

Anytime a person has to pay taxes and fees to borrow on many that’s theirs. It’s a scam.

[BryanWCrute]

Most people focus only on the accumulation of numbers on a computer screen, without thinking about the distribution strategy.

Aside from the speculative nature of that money’s growth during one’s accumulating years (it’s essentially gambling), storing money in a 401k places the “owner” completely at the mercy of unknown tax rates upon distribution, with no control over how much of it is actually theirs to spend when they need it. This is where most people’s financial ruin occurs.

How many people were just about to retire in 2008 and 2020 and felt good about their 401k, then the market crashed and wiped them out?

Also, the opportunity cost of having restrictions placed on your access to “your” money over your lifetime is incalculable.

[KeProductions]

Rashad is correct, definitely not a scam. You truly have to invest in the positions you feel is best. Always do your research. Some companies have better options than others to invest into your 401k. My company thank goodness has a few blue chips index funds so I'm straight

[coolnoah]

If your employer matches your contribution into a 401K and you don't contribute then you're leaving money on the table. 401K contribution is the modern replacement for pensions.

[labro]

Thank you, for speaking on this, alot of companies, have gotten rid of pension plans, so 401k is the only thing that is being offered. Just max that 401 k plan out.

[antoinettewoodley]

Most people do not know how 401K actually works. Most people do not know that you can select different options in order to make your money grow. Most people do not know that when your money is put into a 401k it iis placed in a basic plan. The user must select different options in order to get growth.

[alexknaus]

401k works if you max it out for years (decades) get older and put into a tax free IRA, then pepper in SSI and other retirements. It’s hard to pull off but it can work.. for the average person pensions are better

[chanale]

We have a self directed 401k. We choose what we invest in

[BSGTheMillionaireMaker]

401K is definitely a scam. You’re giving someone carte blanche over your money. You don’t know what you’re investing in. They are paying themselves huge management fees. Employer match is a lie. It’s simply a kickback of fees from the asset manager. You can replace your entire 401K with crypto.

[bregorb]

Yeah, but when your employer doesn't match, it's harder to grow your money.

[denisepinnix]

Started investing in 1992
Max contribution 17% with a company matching 6%
NO WHERE NEAR A MILLION
Thats why I don't understand why people say invest 300.00 a month in a ROTH in your 20 and you'll retire a millionaire??? I WAS HAVING A MINIMUM OF 117.00 weekly for 35 years in my 401k?? The Math Ain't Mathing....And they Frozen my Pension after my 15th 😢

[ka]

There's always going to be an equity option or an option to invest in the S&P 500 which over time can make millions for people.

[mistersuds]

401k can have employer matching which is free money and if you do want to take those fund and self direct you can roll over to an IRA. With a trad 401k you can build that till you max out the amount to can borrow against if you ever need a loan and then build the roth 401k so you can grow post tax and all gains be tax free

[tjdwyer]

Is a traditional 401k or roth 401k better?

[drgswhk]

The only time a 401k can benefit you is if A:You earn such a high income that your can max it out every year without thought B:Your company offerers matching your contribution or C:Both. If you’re a low income earner and your company offered a match then take that free money but don’t be afraid to withdraw early and do what you need to do to invest that money in more active ways

[cesargonzalez]

This investment option works if ur not heavily invested into a business.

[thethday]

They are not speaking on all the fees comes with this.. 401k is for retirement as being advertised. However, once Stock marker goes down, so does your money. Stop listening to ppl who are not experts

[moneymikeslickwill]

Naw 401k is like the stock market which is gambling no thank you. I’ll stick to real estate and my trucking company and military and VA pension thank you

[KoOLKiddo]

If you tell ppl by investing in this you can get a return of X, but yet when they do invest they actually get X-.50X that's a SCAM bruh. Just be honest and tell people they not going to see as much growth as they would invest in a regular ass brokerage account. It's the need to lie about what goes on that upsets me about this ish. Like for real, give people the truth and let them choose why hold people's money for hostage and for your profit? That's the B.S. with 401k.

[EliciaSashington]

I guess it depends on your 401k plan. I am invested in a growth fund and it has the S&P500.