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Exactly, it's impossible to guarantee that large sums of money for retirement will be safe, thus SS.
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I've been thinking about this for quite some time. I refer to the 401K as the "Long Con".
I'm listing the cons and pros, anyone agree?
Cons
- 10 % Penalty Withdraw if you withdraw early
- Money is tied up until you reach retirement age
- Money is still taxed at your tax rate when you retire (why even tax it at all)
Pros
- Employer match
- Pre tax contributions
It seems to me , that for someone in there early 20s the 401K is a bad deal. In order for a 401K to pay off you basically have to have a perfect life and not ever have to make a withdraw before retirement from your 401K that's a pretty big bet.
Any thoughts?