For retirement purposes, 401k's are a scam. They've been used by the ultra-rich to kill off pension plans, because they couldn't sell crummy mutual funds to highly regulated PPs, while they are free to troll for a million suckers via 401ks and by corporations to to unload their PP costs onto the backs of their employees. The results are in your daily headlines.

401K's carry with them the responsibility of ownership.

And we can't have any of that!

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1980 300TD-China Blue/Blue MBTex-2nd Owner, 107K (Alt Blau) OBK #15
'06 Chevy Tahoe Z71 (for the wife & 4 kids, current mule) '03 Honda Odyssey (son #1's ride, reluctantly) '99 GMC Suburban (255K+ miles, semi-retired mule) 21' SeaRay Seville (summer escape pod)

Great advice here.

Do not pass up the chance to invest in your 401K for retirement.

Get some advice from a financial professional on how to spread your money among the funds offered in the plan. This is called asset allocation, and it's the most important decision you will make.

One good choice is to invest the money into funds called something like "Target Retirement funds". They usually go in five year increments, so they will have funds titled, "Target Retirement 2025", "Target Retirement 2030", "Target Retirement 2035", and so on.

You pick the fund that has your closest retirement date, and the fund company manages the asset allocation for you, adjusting the mix of stocks, bonds and cash to a conservative mixture at your retirement date.

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Paul S.

2001 E430, Bourdeaux Red, Oyster interior.
79,200 miles.

1973 280SE 4.5, 170,000 miles. 568 Signal Red, Black MB Tex. "The Red Baron".

Is it really interest or is it because that value of the stocks that are in your portfolio have gone up? It's not like saving account interest is it? Compound interest is a great thing, just look at the amount of money banks make on a mortgage loan.

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1984 300SD Orient Red/ Palomino
1989 560SEC
2016 Mazda 6 6 speed manual
1995 Ford F-150 reg cab 4.9 5speed manual

Compounding interest is the idea that not only your principal, but your interest is also earning interest.

Any money that you invest may earn interest, dividends, or capital gains. When you reinvest those earnings, they help generate additional earnings; those additional earnings help generate more earnings, and so on.

Here's an illustration:

If an investment returns 8% per year and returns are reinvested annually:

After one year, your total return will be 8%
After five years, your cumulative total return will be 47%.
After ten years, your cumulative total return will be 116%.

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Paul S.

2001 E430, Bourdeaux Red, Oyster interior.
79,200 miles.

1973 280SE 4.5, 170,000 miles. 568 Signal Red, Black MB Tex. "The Red Baron".

..... of something that was jammed down their throats by their employer, thanks to deregulation of retirement plans.

DB plans are anacronisms which by and large only survive in the Land of the Big Two: Auto makers & Governments (including Teacher Unions.)
Steel, Airlines, etc. DB plans gone but not forgotten. Why?
Ahhh, the cradle to grave bennies... The ultimate big brother.

Is it coincidence that these two types of organizations are today in the most dire of financial circumstances? We can buy foreign cars. We can't buy a different government. And we sure as heck can't afford this one.

Tom Friedman says we live in a flat world. Wish that we could "outsource" education the way Dell outsources customer support..

Time value of money. All thing financial hinge on this very concept.

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1982 240 D, 308,000 - 321,127 miles (sold)
1982 300 TD,166,500 - 226,000 miles
1998 E 320, 120,000 - 144,000 miles
2005 C 230 K, 26,000 - 77,000 miles (sold)

Yes there is a risk with the 401k of any corporation reorganizing, or being bought and not honering any old agreements-like pensions. And the 401k is being invested--by a---- stock broker -- Do you know what a Stock Broker is?????? He's a guy that takes his experience, and your money---- and turns it into HIS money---and your bad experience!

But if you are not as cinical of big buisness as I am , and you dont think another crash will happen like last year--Then you are going to play the 401k game---You started out at the right time 23 yrs old. No way I would start one 35-40 yrs old .

You're all about freedom huh?

Tell us all how employees are forced to join a 401k. Gunpoint? Bamboo shoots? Loud rock music?

Unlike the freedom of choice concerning Social Security, for example.

I'd like to say that whatever path you decide to take, NOW is the time to start following it. The markets are down and everything is dirt cheap, you can get a ton for your money right now. Look at good companies like GE that will be around in 40 years when you retire.

You won't get another chance like this in your life to buy stuff this cheap, don't be one of those hindsight people 20 years from now.

As with Kerry I'm betting on real estate.

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2016 Corvette Stingray 2LT
1969 280SE
2023 Ram 1500
2007 Tiara 3200

Wow! that one guy must not have a retirement of any kind, from the looks of the negative, twisted bs he's posting. It must be awful being an old turd herder like him, and that broke. Glad I'm not in his shoes, and super glad he's not giving me advice. Oh well, broke is as broke does.

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'06 E320 CDI
'17 Corvette Stingray Vert

Financial posts can get like oil threads.

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1984 300SD Orient Red/ Palomino
1989 560SEC
2016 Mazda 6 6 speed manual
1995 Ford F-150 reg cab 4.9 5speed manual

Yes because 401K plans vary too much from employer to employer, my companies 401K it pitiful there is very little diversity in funds to choose from and the match is 1/4%. So in my case a 401K has more risk than opening an etrade account and investing in a dart board.