If you are an employee of a business that offers 401k plans, take notice before jumping in. If you are currently participating in a 401k, and have “saved” for years, then you must really read and watch now. The fallout around the 401k and worker retirement planning is massive. You’ll see that in this real-life video.
Closing out a 401k account could be the smartest thing you do this year. With the US deficit growing, the dollar value shrinking and the feds printing money like everyday is Christmas, you’d better be prepared for (another) big melt-down in the economy in the next few years.
Staying in a 401k can and will kill your last dreams of a happy retirement. (again, watch the video).
The employee contribution and (optional) matching of dollars from employers into the 401k plans rises and falls with the economy. You essentially have no control, which is the worst place you can be as an investor.
US citizens have lost millions of dollars in the portfolios over years of letting the institutions (Fidelity, for example) manage their money. Not only do you have no control, but there are many fees taken away (stolen from you) that are not disclosed. They are making boatloads of money, but you aren’t! However, do not over-react and just pull the money out of your 401k.
Be smart about it, and learn about investing, entrepreneur-ship, business and real estate. These are powerful instruments or markets, and you should get help before diving in. Consider learning about financial education, get a mentor, and read more about it. And, if you want to increase business opportunities in your local markets, register for a small business webinar.
Get a more complete picture of the 401k fallout from this 60 minutes story on CBS News:
Related articles to closing out a 401k account
- Is Now The Time To Cut The Cord On That Old 401K Plan? (businessinsider.com)