Comments on: Arguments Against Investing In A 401K

By: webmaster a401

webmaster a401 — Sun, 06 Feb 2011 17:21:25 +0000

I would like to this blog.The most convenient way to use 401K as a real estate funding tool is to apply for a loan against 401K. Successful real estate investors seldom use their own fund for real estate investment. You should use little or none of your personal amount while investing in property. Using 401K loan in real estate investment is a good bet, because after closing off the deal, you will get back the amount. Paying off the loan including interest, without affecting 401K becomes much easier by this method.

Goog Luck

By: JoeTaxpayer

JoeTaxpayer — Tue, 29 Jun 2010 22:32:06 +0000

Just read this as a ‘related post’.
Unfortunately, all of your warnings are correct.
(a) fees can negate the potential savings from tax deferral.
(b) loss of cap gain can also negate the deferral
(c) I’d only caution on deferral having no value at all. For most people who are saving tax deferred, the chance they’d save to a higher bracket is slim, but can be addressed over time.

If nothing else, your readers need to review their own finances, fees, and plans, and choose wisely. Good article, as always.

By: Kyle

Kyle — Thu, 10 Sep 2009 00:44:12 +0000

Such as? Criticism that doesn’t present any alternatives is less than useless.

By: Anonymous

Anonymous — Thu, 10 Sep 2009 00:21:32 +0000

Amateur is an accurate word for your advice. There are so many incorrect statements made in this article.

By: David

David — Tue, 13 Jan 2009 00:38:27 +0000

I’d be interested to hear your thoughts on a Roth 401K.

It’s an option in my retirement plan, and I’m using it exclusively. Call me paranoid, but I have a feeling that tax rates will only go up (as will my taxable income), so I’d rather pay my taxes know and know exactly what it’ll cost me

By: DoneToZen

DoneToZen — Mon, 12 Jan 2009 12:14:59 +0000

I’ve been trying to get my company to talk about offering a Roth 401K; unfortunately, it doesn’t look like the policy makers know of its advantages. When I asked, they told me to open a “Roth IRA” account because both are the same. I tried to tell them that Roth 401K has a much higher limit, but I haven’t gotten a response back yet…

By: Lazy Man and Money

Lazy Man and Money — Mon, 05 Jan 2009 22:37:28 +0000

Thanks for the mention. My article is a little bit of a devil’s advocate approach trying to get people to do the math themselves. A lot of people get 401K matches which blows my argument out of the water. I did not, which lead me to look at a 401K closer.

By: Pinyo

Pinyo — Mon, 05 Jan 2009 21:28:00 +0000

A lot of good points definitely worth considering. My 401k does offer Vanguard TRF with 0.21% expense ratio — this is looking more attractive the more I think about it. Unfortunately, no Roth 401k for me yet.

By: Mr. GoTo

Mr. GoTo — Mon, 05 Jan 2009 21:13:21 +0000

Good analysis. I will add a couple of points. First, some 401(k) plans have a Roth feature that allows you to make some or all of your contributions after tax so that withdrawals are tax free.

Also, some 401k plans have a self-directed account option. This allows you to have almost unlimited investment options if you are willing to pay some commissions. My plan has this.