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Originally Posted by Halfcan
Telling a young person to buy their own home instead of rent is bad advice??
So he puts his $50 in a 401k great if that helps him save. But if that same person is paying $700 a month in rent-what is the point? When you figure in inflation and fees-a majority of 401 ks will not outperform RE.
There is something called leverage-you use other peoples money to secure a property, not only do you get a tax break on the interest, you benefit with appreciation. Instead of rent you are paying down a mortgage that will someday be paid off leaving an asset that will continue to increase.
As for a pile of money-hardly-there are Gov Bond programs and financing options galore-with no money down.
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Where are you coming up with this fees crap? They are minimal...or none at all. Also, you are forgetting the company matching.
Most 401k plans have minimal if any fees...get a clue.