Friday, August 5, 2011

Are 401K plans bad for the average hourly worker giving the fact ...

Despite what people say about 401k?s being a tax shelter, there are for those who can afford to sock money into them. For most average workers who make less than $40,000 a year, they cannot afford to put any money into a retirement simply because the cost of living has risen so much that most people are now using money that would have been earmarked is being used just to survive day to day.

Above all else, there?s no guarantee that money put into a 401k plan will be there in 30 or so years when they get ready to retire. To boot, most companies now are doing away with company matches.

More than anything else, companies do not in most cases do not adequately educate their employees about the do?s and don?ts of investing so they in the dark from the get go.

Source: http://rothira.solve-up.com/roth-ira/are-401k-plans-bad-for-the-average-hourly-worker-giving-the-fact-wages-over-the-years-have-been-stagnant/

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