Top Reasons Your 401(k) Is Your Riskiest Investment

  • YOU CAN BE WIPED OUT OVERNIGHT

  • COMPOUNDED AND HIDDEN FEES

  • YOUR MONEY IS TIED UP

  • PAYING TAXES

  • YOU HAVE NO CONTROL

  • THE GOVERNMENT OWNS YOUR 401(K)

Your investments within the 401(k) are in the stock market and not protected from losses. You can lose some or all of your investment in no time. Retirement and financial planners commonly tout the stock market as an average 8-11% return per year. That was last century. From 2000 to 2015, the market was up just 8.4 % and after inflation adjustment, or 0.56 % per year! Not exactly good results for so much risk and potential loss.

Your investments within the 401(k) are in the stock market and not protected from losses. You can lose some or all of your investment in no time. Retirement and financial planners commonly tout the stock market as an average 8-11% return per year. That was last century. From 2000 to 2015, the market was up just 8.4 % and after inflation adjustment, or 0.56 % per year! Not exactly good results for so much risk and potential loss.

Your investments within the 401(k) are in the stock market and not protected from losses. You can lose some or all of your investment in no time. Retirement and financial planners commonly tout the stock market as an average 8-11% return per year. That was last century. From 2000 to 2015, the market was up just 8.4 % and after inflation adjustment, or 0.56 % per year! Not exactly good results for so much risk and potential loss.

Your investments within the 401(k) are in the stock market and not protected from losses. You can lose some or all of your investment in no time. Retirement and financial planners commonly tout the stock market as an average 8-11% return per year. That was last century. From 2000 to 2015, the market was up just 8.4 % and after inflation adjustment, or 0.56 % per year! Not exactly good results for so much risk and potential loss.

Top Reasons Your 401(k) Is Your Riskiest Investment

  • YOU CAN BE WIPED OUT OVERNIGHT

  • COMPOUNDED AND HIDDEN FEES

  • YOUR MONEY IS TIED UP

  • PAYING TAXES

  • YOU HAVE NO CONTROL

  • THE GOVERNMENT OWNS YOUR 401(K)

You can be wiped out overnight.

Your investments within the 401(k) are in the stock market and not protected from losses. You can lose some or all of your investment in no time. Retirement and financial planners commonly tout the stock market as an average 8-11% return per year. That was last century. From 2000 to 2015, the market was up just 8.4 % and after inflation adjustment, or 0.56 % per year! Not exactly good results for so much risk and potential loss.

Compounded and hidden fees.

The toll taken by 401(k) and associated mutual fund fees is staggering, and can amount to over 50% of the gains. With 401(k)s, there are often more than a dozen undisclosed fees: legal fees, trustee fees, transaction fees, stewardship fees, bookkeeping fees, finder fees and more.

Do you really want to invest your retirement money in a place where you contribute 100% of the capital, you take 100% of the risk, and you get 30-50%

of the return?

You can't access your money because it's tied up.

Money in your 401(k) is "tied up"until age 59 1/2 unless you want to pay penalties for early withdrawal or double tax on what you borrow from your 401(k). Think of what other investments you could use that money for. More secure, more profitable investments that create cash flow, one of the principals of creating wealth.

You'll get hit with taxes

No one likes paying taxes. Because 401(k)'s are tax deferred that means you can put off thinking about paying taxes until you need the money. Here's the bad news; taxes are at a historical low now, but 10, 20, 30 years from now they will undoubtedly be much higher, and that's what you'll pay to gain access to your money. Think of all that money in your retirement pot and imaging the blow when you have to pay 30-50% of it to the government. This doesn't include the estate taxes and income taxes your children will be hit with when you pass away.

You have NO control of you money!

How much do you really know about your 401(k)? Do you know the funds in which you're invested? How about the details of the companies inside those funds? Do you know the fund manager's philosophy, history, and performance? Most people are clueless, so how can you expect to gain a return from something that you know so little about?

The Government owns your 401(k)!

Top Reasons Your 401(k) Is Your Riskiest Investment

  • YOU CAN BE WIPED OUT OVERNIGHT

  • COMPOUNDED AND HIDDEN FEES

  • YOUR MONEY IS TIED UP

  • PAYING TAXES

  • YOU HAVE NO CONTROL

  • THE GOVERNMENT OWNS YOUR 401(K)

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You can be wiped out overnight.

Your investments within the 401(k) are in the stock market and not protected from losses. You can lose some or all of your investment in no time. Retirement and financial planners commonly tout the stock market as an average 8-11% return per year. That's a flat lie. From 2000 to 2015, the market was up just 8.4 % and that doesn't include the losses during the downturns that aren't recovered or an inflation adjustment. 2020 is shaping up to be even worse.

Compounded and hidden fees.

The toll taken by 401(k) and associated mutual fund fees is staggering, and can amount to over 50% of the gains. With 401(k)s, there are often more than a dozen undisclosed fees: legal fees, trustee fees, transaction fees, stewardship fees, bookkeeping fees, finder fees and more.

Do you really want to invest your retirement money in a place where you contribute 100% of the capital, you take 100% of the risk, and you get 30-50%of the return?

You can't access your money because it's tied up.

Money in your 401(k) is "tied up"until age 59 1/2 unless you want to pay penalties for early withdrawal or double tax on what you borrow from your 401(k). Think of what other investments you could use that money for. More secure, more profitable investments that create cash flow, one of the principals of creating wealth.

You'll get hit with taxes.

No one likes paying taxes. Because 401(k)'s are tax deferred that means you can put off thinking about paying taxes until you need the money. Here's the bad news; taxes are at a historical low now, but 10, 20, 30 years from now they will undoubtedly be much higher, and that's what you'll pay to gain access to your money. Think of all that money in your retirement pot and imaging the blow when you have to pay 30-50% of it to the government. This doesn't include the estate taxes and income taxes your children will be hit with when you pass away.

You have NO control of your money!

How much do you really know about your 401(k)? Do you know the funds in which you're invested? How about the details of the companies inside those funds? Do you know the fund manager's philosophy, history, and performance? Most people are clueless, so how can you expect to gain a return from something that you know so little about?

The Government owns your 401(k)!

You may be surprised to learn this, but your 401(k) does not even technically belong to you. Read the fine print and you will find "FBO" (For Benefit Of). The tax code makes it technically owned by the government, but provided for your benefit. Governments in other countries have raided private retirement plans leaving the contributor (YOU) at a loss. Argentina in 2008, Hungary in 2010 and Ireland in 2011 and it could happen in America! During the last recession, Congress invited an expert to give testimony on confiscating 401(k)s and turning them into a public retirement plan like Social Security. It only takes one economic crisis before you retire for possible rule changes or confiscation of your 401(k).