The 401k good idea or bad idea?

Question

The 401k was orginally created as an investment tool for the wealthy. Today the 401k is being used and pushed as the new retirement plan to fix or replace social securtity and traditional work-place retirement plans. With the effects of all the money from 401k's being invested in the financial markets. Has the 401 been a good or bad idea for the economy and the average worker?

Answer 1

The 401k has been excellent for the average american worker.  Wthout them, most workers would have no retirement.  Other than that provided by social security.    

401k plans only for the wealthy??  I don't think so.  The cap of $15,500 a year on these plans, is nothing but chump change to them.  I doubt the rich would bother with such a trivial amount.

Answer 2

The 401K is an excellent investment tool. Just diversify and do not look at your statement every month. Reveiw once a year. Markets go up and down and most people will never be able to catch the ups every year. If SS is not going to be around then its best to have a nest egg elsewhere. The markets have enjoyed an increase due to people investing there retirement savings. Most plans are long term so gives a percentage of the market a stable base. Now on the other hand the institutional traders and manipulators put more volitility in the markets and will irritate people if your looking at your statement monthly.