Mar 31 2014, 6:55am CDT | by Sumayah Aamir
A lot of US citizens have made an input of oodles of money in 401 (k) plans . And the fact may be that they are being swindled by the barrel load. But one wonders how that could possibly be.
Well, the vast collection of alternatives that are presented on a menu before you may be one reason. The funds that lie behind these options have high management fees. Sometimes these fees are so astronomically high that they equal the sums saved from the 401 (k) plans .
Some furthermore constituted bad choices. Therefore the low dividends that accrue from these so-called plans for retirement age are a hard fact and ugly truth that no amount of fantasizing and wishful thinking can eliminate.
The thing is to learn to differentiate between Roth IRA and traditional IRA. That way you will know what to do about your future retirement funds. No one in his right mind wants to play with the future that awaits one after a long and hard life of ethical enterprise.
So that is why one ought to be prepared and remain forewarned concerning 401 (k) plans . They may backfire. Therefore, beware of the economic bog that lies ahead!
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