Does 401k Make Sense?
Does 401k make sense? Is 401k Plan Good for Retirement? – Robert T. Kiyosaki Thoughts. Awhile ago, we talked about what is a 401k all about. Now, let us find out if a 401k plan is good for retirement. I would like to share what Robert T. Kiyosaki said about 401k plans. We all dream to have a great retirement experiences. We are well-motivated to keep some portion of our hard-earned money to prepare for our retirement. Everyone deserved to retire rich and comfortable. To secure our retirement funds, many of us take advantage of 401k plan. But, this page will let you think twice if you will pull out your 401k contributions and invest the funds in an investment vehicle that can help us grow our money overtime.
Related: How Does 401k Help You Get Rich
While I am reading the book of Robert T. Kiyosaki, Cash Flow Quadrant: Guide to Financial Freedom. I decided to share to you his point of view about 401k. His statements are as follows;
“I say the 401(k) may possibly be the worst way to invest for retirement for the following reasons…”
“A typical 401 (k) plan takes 80 percent of the profits. The investor may receive 20 percent, if they are lucky. The investor puts put 100 percent of the money and takes 100 percent of the risk. The 401 (k) plan puts up 0 percent of the money and takes 0 percent of the risk. The 401 (k) company makes money, even if you lose money.”
Another interesting point of views from Mr. Kiyosaki related to 401k plans. In his book, he stated that “The 401(k) is for people who are planning to be poor when they retire.”
For him, a 401k plan are too expensive, too risky, too tax-inefficient, and unfair to the investor.
Citations and References: Robert T. Kiyosaki, Author, Rich Dad’s Cash Flow Quadrant: Guide to Financial Freedom, 2012 Plata Publishing, Scottsdale, Arizona, USA. page 127-128 ISBN: 978-1-61268-006-4
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What do you think about his Robert T. Kiyosaki’s point of view? Do you prefer to contribute to 401k plans rather than investing your hard-earned money directly in the stock market. It’s your turn, answer this question, is 401k plan a good investment for retirement? Thanks for sharing your opinions!