Quote:
Originally Posted by MediaArtist
It's true that some people don't save enough, or cash out their 401k accounts, but I believe it clearly says that most 401k plans are poorly managed and diversified which goes back to my main point. In fact, here's it is again:
That clearly implies the returns are "bad" not because people are cashing out but because the majority of people aren't able to effectively manage their plans.
Of course anyone can claim that "they have the secret formula", but actual research and statistics show that in general that isn't the case.
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All a 401k is a container for whatever investments the employee wants (although some have limitations). If you're saying the reason is due to picking bad investments, then it has nothing to do with the 401k, and all to do with picking the stocks. Or am I missing something?
BTW I don't mean any disrespect, its actually nice to be in an intellectual conversation.