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Saturday, January 14, 2012

How 401(k)s Make Many Americans Poorer

One of the most widely dispensed and universally accepted pieces of financial advice is that you should contribute at least enough to your 401(k) to get the full match from your company. If you don’t, so the wisdom goes, you will be giving up free money. Well, it turns out that money isn’t exactly “free.” In a sense, it’s coming right out of your paycheck.

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Anonymous said...

In the 2000's 401k's in general lost far more than any match program compensated for.I at least broke even with my money market account,even after factoring in inflation.That's nothing to brag about,but at least I did'nt lose money.

Anonymous said...

Even with the disparity in pay, that money the employer contributes is tax free. Put it in your check and you will still bring home less than what the current employer match 401k provides.

Those who were smart enough to lock in their gains before the market fall out are the smart ones. Those who immediately dove back in when the market hit lows of 9, 8, then 7000 were even smarter. It's not rocket science folks; buy low, sell high.