What is a good piece of advice from your parents or that you’ve learned that others may not know or that you wish you were told as a child/teen?
What is a good piece of advice from your parents or that you’ve learned that others may not know or that you wish you were told as a child/teen?
Why do you expect that the savings in a 401K will be worth something once you want to retire?
In Germany, about 20 years ago they pushed evwryone to additionally to the normal state funded retirement to have private insurance too (Riesterrente) over time all this money was stolen by shady insurance people who got super rich (Meschmeier or so his name) so that what is still left is not worth anything. But the state owned retirement is still working kind of OK.
(I’M NOT FROM THE uS, so I’m not sure if 401k is state owned or private)
Yes. “Put your money here, it will be there when you’re old—we promise.” Is a ridiculous plan.
You get to choose how your 401k is invested, though. The only difference is a tax advantage.
The advice is just: save money, let it grow using compound interest, use tax laws to your advantage.
There’s no “trust the government” in that advice.