General Discussion

RandySF

(58,924 posts) Tue Jan 6, 2015, 12:10 AM Jan 2015

One problem with 401k's is the lousy choices you get.

I had a 401k with an old job that never seemed tot take off and it was frustrating. I left the job to move to CA and rolled it over to an IRA and, since then, the wider variety of choices allowed me to double my return. Meanwhile, I looked back at my old funds and they are pretty much stuck in the doldrums. So now, instead of the 401k at my current job (which my employer will NOT match), I take the money I would have invested at my current job and build a portfolio based based on my successes with the IRA. Where in the world do employers find these turkeys?

4 replies

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Highlight:

One problem with 401k's is the lousy choices you get. (Original Post) RandySF Jan 2015 OP

Lazy HR people joeglow3 Jan 2015 #1

Well, 401s aren't designed for the likes of you and me.... daleanime Jan 2015 #2

The 401(k) wasn't designed at all, it's an accident of history Sen. Walter Sobchak Jan 2015 #4

401K if done right can be even more yeoman6987 Jan 2015 #3

joeglow3

(6,228 posts)

1. Lazy HR people

Reply to RandySF (Original post)

Tue Jan 6, 2015, 12:14 AM

Jan 2015

When I started my job at a Fortune 500 company, I looked at their fund choices and they sucked. I ran numbers on past performance and compared it against their index and the corresponding index fund at vanguard.

They never replied to my email, but in two months all the funds were dropped and vanguard index funds were added.

daleanime

(17,796 posts)

2. Well, 401s aren't designed for the likes of you and me....

Reply to RandySF (Original post)

Tue Jan 6, 2015, 12:16 AM

Jan 2015

it's so bankers can make money off our desperate attempts to save for retirement and so people like Rmoney can hide a few more million.

Sen. Walter Sobchak

(8,692 posts)

4. The 401(k) wasn't designed at all, it's an accident of history

Reply to daleanime (Reply #2)

Tue Jan 6, 2015, 12:43 AM

Jan 2015

A change in the tax code in 1978 had some negative implications for popular investment accounts that became a popular perk in the 1960's and 70's. 401(k) just reflects that contributions to those accounts are deferred income.

That this would become the basis of the retirement system was just a fluke.

My dad had one of these Pre-401k accounts.

yeoman6987

(14,449 posts)

3. 401K if done right can be even more

Reply to RandySF (Original post)

Tue Jan 6, 2015, 12:35 AM

Jan 2015

Beneficial then a pension. Of course it all depends. A pension of 900 dollars without COLA can become useless quickly. A couple hundred thousand in an IRA can be flexible and if you have your home paid for which most do by retirement then it could work out better. All individual though. You have 40 years to get it right for retirement.

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