Quote:
|
Originally Posted by jspchief
That's ridiculous. You must be in the worst 401k program in the universe if you're paying so many fees that the match is negated. 100% match of 5% is a lot of free money before the money even gets put to work through investments.
401ks are great investments for the average Joe. For starters, your contribution gets taken before you ever see the check, eliminating the discipline hurdle that most people can't get over. Second, most are run through comapnies that are experts at picking funds, eliminating the stock market ignorance that the average person faces.
As for real estate, sure it's a great investment if you have a pile of cash sitting around. But taking $50 per week from your paycheck is going to take a hella long time to get enough to invest in real estate. Time that your money could have spent earning more.
Telling a young person that doesn't even understand a 401k to invest in real estate instead might be the worst advice ever given on this website.
|
What I like about my 401k is that I basically just have to tell them how aggressive I want to be. I currently have 25% in a lower yield (security blanket), and I'm very aggressive with the other 75%.