401K Question...

[chief52]

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.

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.