this post was submitted on 19 Jan 2025
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I learned the hard way that 401k is a scam.
Just put money in a savings account, people.
Ah yes, love me some 0.01% interest. Surely my savings will grow.
losing 5-8% buying power every year sounds great!
What part of a 401k do you think is a scam lmao
The part where it's defined-contribution instead of defined-benefit.
To be perfectly honest, I personally am better served with a 401(k): I'm in an above-average earning career (engineering), have lived well below my means, and am financially literate.
But most people are not like me. Frankly, the average worker in the US is either not competent or not disciplined enough to both actually contribute enough and invest it properly, and so as a nation we're careening towards a disaster of geriatric poverty the likes of which hasn't been seen since before Social Security was invented.
So yeah, the American working class was definitely scammed when pensions were replaced with 401(k)s. But hell, even if you don't understand the actual differences and implications, you could also tell it's fishy even just by the fact that the execs were so eager to switch over!
guessing vestment
Definitely some form of financial illiteracy which is certainly unfortunate but not to the detriment of all 401ks
it kinda is in that 401ks should not allow that pro job / anti worker bullshit
it’s crazy how we as a society allow all that obvious gatcha type rules just to help rich fucks get richer
Sure, but be mad at vestment, not all 401ks have that.
oh for sure I agree with you and it is likely his own fault but I do sympathize with his frustration
How is adding money every paycheck to an account with the promise of it being there later my fault?
depends on what part you are upset with
stock selection, interest, market fluctuation, vestment dates or withdrawal age
you’re being so purposely obtuse no one has any idea what you are complaining over
Shit, you probably don't believe in direct deposit either.
That response doesn't make any sense.
The assumption that you're going to live to a ripe old age and still remember your own name.
"Don't plan for tomorrow because you might not live through today" is a great way to die horribly tomorrow.
That's cute but guaranteed if you're under 30. If you're under 40, you're going to lose any and everything you save.
I'm excited to hear you clean up on Short bets with that crystal ball of yours
Bruh, it's pretax dollars in an account that 9 times out of 10 out performs interest rates. Even in huge downturns, it will bounce back thanks to stock market goes brrrrrrrrr
I must have hit that 1 out of 10 shot. Bro.
If you tried to use it in like 2009 then ya. But if you kept it until now it would be doing great.
Obviously it's doing "great". That's why I'm saying what im saying... Seriously? 2009?
If you're saying you're that 1 out of 10, then you made it sound like you lost money. Now you say your 401k is doing great? I'm sorry, I don't understand the point you're trying to make.
And yes, 09 was a shit show for 401ks/market value.
What are you talking about? I never said it was doing great. I airqouted it, man. I'm done with all of this.
What if you only invested at market peaks
At minimum throw it into SNP500. Return on that over 10 years will always go up.
What if you only invested at market peaks
Story time!
There's nothing in the account.
Fun story
Did you not add money? Invest in a single stock that went bankrupt? Get scammed?
Added money every paycheck.
Ya you were scammed or we're not getting the full story. If it was a real 401k it's composed of diverse stocks and bonds and stuff and if it hit 0 the US wouldn't really exist. Unless you were self managing and put it all into a company that stopped existing or something.
Every job for 34+ years, put money in every paycheck. Become disabled. Look in 401k, there's not enough for even one months rent.
I call that bullshit. I don't care what everyone here thinks. You're all smart asses until you find out.
You might get two months rent after 65 years! Whoooo
You're math here isn't working out. Were you putting less than a dollar a paycheck? Did you have one employer the entire time.
Assuming you did not, when you changed job did you roll over the previous 401k into a Ira or spend it? Even if you ignored the paperwork, the money should still be out there somewhere.
Yeah dude. What job let's you put less than a dollar in? Id love to hear that. The money is not there. I suggest you look at yours.
I am well aware of what my various accounts contain. You didn't answer any of my other questions.
Chance are you didn't roll over your 401k funds into an IRA and instead spent it.
Your post is so weak on details, I would advise no one to listen to you doomer advise.
More quesrions for you to ignore. Was their company matching? What percentage did you invest? Was it enough to trigger matching?
There are msnyneoole who have successfully retired with the 401k retirement scheme any bad results can be contributed to lack of financial literacy and responsibility.
Ya, this dude doesn't make any sense. He contributed every paycheck for 34 years but never looked at the account? Never once? Did he keep the same job for that long? How does he even know he was contributing if he never looked to see what it was doing? And he thinks he's uncovered some big conspiracy like no one else has used a 401k before? We're missing a huge part of the story.
There is a thin line between feeding trolls and calling out their bullshit in a civilized way because calling them out forcefully makes some people think I'm the bad guy.
My main concern here is making sure no one falls this idiots doomer advice because waiting to invest for retirement is a huge mistake.
And not everyone is raised by financially literate parents so they can't tell the difference between good and bad advice.
Valid point. I think it’s more when it’s going ~3+ replies with the same tired arguments that it’s gruel into the troll.
Also, since joining Lemmy, I use the block button a lot more for people than I used to.
Glad you're admitting it.
Buh-bye now.