10 things 401k plans won't tell you

I've had both a 401k and an investment acct. I found the 401k with a 50% company match had made me more money in the long run than I see the investment acct. doing. Too many hands in the pot. Taking out too many fees. Especially hidden ones.
I ran my own 401k acct., but opted to pay them at the investment acct. to do it because I'm too tired to learn this stuff all over again. They claim they ONLY take 1.25% out. But watching my acct. lose thousands for this 1.25% is a bust. I don't have that much in it to need to lose so much each year. I'm sure whoever is running this thing is filling their pockets plenty, since I am but one investor. No wonder these places are rich as Hell.
Plus...if I want to take out my money, I have to shell out 20% taxes right off the bat. Since my acct. is filled with before tax money, that was chosen by my Ex. When he took his portion out, he took out all the after tax contributions for himself. Screw me !! By all of them !!
But...I'd much rather keep my money under the mattress these days. When ya don't...every Tom, Dick & Harry has his hands in it.

What a BS article.  YES, 401k plans WERE meant to supplant pension plans.  But, the general public is to fricken lazy to save enough.  They would rather spend money on their big screen, new cars and other junk before saving for themselves, then they whine that big business has screwed them.  I am sick of people not making good decisions, not taking care of themselves then trying to make it someone else's fault.  Let em starve.  

Basically 401 k plans were designed to supplement pensions. I can see that, but the investment industry pounced into the foray, as they knew they could get $$$$ in fees from "average middle class Joe's".   For most  Americans that invest into 401 k's don't have a clue about investing. They know they should invest for retirement, but never educate themselves. Remember this people..NOBODY LOOKS AFTER YOUR MONEY BETTER THAN YOU DO.  So, that also means educating yourselves about investing, and the merits of compounding interest.  That is key, especially for the younger generation. The more time your investments have to grow, the better compounded returns are.

  I assist fellow employees on investing in their 401 k's. I am not a advisor, but, I study the markets, and educate myself.  I assist my fellow co-workers. I try to explain the basics, of which many don't have a clue.  Of course 401 k plans want you to invest into mutual funds, as they reap big profits off investors in these funds. For the average Joe, a mutual fund can sometimes do ok, but, the mutual fund makes money off of you whether that fund makes money or not. It's in their expense ratio..another name for a FEE to run the fund. 401 k plans would be better off just paying the company that runs the 401 k for the company to charge a flat fee for investments made in the respected employees plan. Expense ratios vary widely, especially in emerging  funds and specialty funds.  I can see the mutual fund companies charging higher fees to people outside of a 401 k plan, but within 401 k's....a flat fee should be the norm.  Larger companies will have the advantage there, as more employees investing into 401 k's, the fees could be lower, and the employees company could use leverage with different 401 k plan providers. So, a disadvantage to the smaller companies.

  I dumped all my mutual funds in my 401 k plan at work, when our company allowed us to invest through the 401 k plan brokerage account.  it's still before tax 401 k dollars, but, I invest my money into whatever i want. Stocks, bonds, cd's, all kinds of investments. There are a few no no's as investing in MLP's and my own companies stock.  I have far greater control of my investments. I invest in individual stocks, and especially stocks that pay dividends. Dividends are free money paid by companies, just for investing in that companies stock. I can choose whether to reinvest my dividends into more shares of that company, or take it as cash, and use that cash to reinvest it somewhere else in my 401 k plan. That is a far greater choice allowed to employees investments.  My return for the year at present is 17.6%.  My goal is at least a 10% return a year on my investments, and believe me, dividends , are a key driver to better returns. Usually in mutual funds, the dividends you receive are at the end of year, like now.  Most companies pay dividends once a quarter, and reinvesting those dividends every quarter can help your investment right away. By waiting until the end of the year to get paid those dividends, they haven't compounded during the course of year. By the way, I pay a flat fee of $12 a year and a  (little high) $8.75 a trade. A trade is when you buy a stock, and when you sell a stock. Most mutual funds in 401 k plans charge the fee based on how much money you have in your account. The more in the account, the more you pay in "FEES". those fees over time will erode your returns, especially when you amass a big account.

 So, i know a long winded post here, but, your company or investment "professionals" won't look out for your best interests like you will. You work hard for your money, so now work hard for your investments to prosper. There's no free lunch in life, so do yourself a favor, and get educated.

That huge sucking sound over the past few decades is from the rich, elite, policy makers in global banks, global governments, and their lobbiests. They have squashed policies and practices that were designed to give the middle-class some security so that instead of letting the middle class gain wealth and security, it goes to the wealthiest among the planets inhabitants (those who make the rules). That sucking sounds is hidden fees going to the banks, lowered wages, weakended and busted unions, higher taxes as a percentage of income, policies that keep money out of the pockets of share holders, more governement fees for services and higher fees for the same or less service...and the list could go on.  Trickle down theory? Don't you believe it. It's actually a gusher up.

This is what the corrupt Republican corporate MONARCHY with their political puppets GAVE US & STOLE OUR GUARANTEED PENSIONS! Nothing but their INSURANCE POLICY that says if they fail so do we!

And they have the nerve to want back in our federal government that they ALSO HAVE STOLEN & put us INTO SLAVERY & IN OUR VERY OWN COUNTRY!!!!!!!!!!

There aren't any "secrets" to a crap-shoot. Besides, I just read an article at WND that this administration wants to take over all 401's now because there is so much money in them.

When you start a 401k at your company, you need to realize that you've just added another job responsibility to yourself; managing your money ! The company itself isn't going to look out for your best interest and certainly not your manager or supervisor. The money you've invested in that fund is now 2 or 3 degrees of separation form you, meaning that it's been 'handed' off to a manager of another company( or computer program) that manages that particular fund. Not very personal and very risky these day's !

My employer, since they are a tiny business can only afford to offer us a company sponsored SIMPLE IRA.   Can't contribute as much into one of these as we could in a 401k.   But, at least the employer matches 3% for us.   And they use Vanguard Funds.  I put all my contribution into a Vanguard Target Retirement fund that has a .17% annual expense ratio.   There are no other fees involved in the plan, just the annual exp ratio.   At least I know exactly what I am paying in fees on my retirement money.   And that fund automatically adjusts the bond to stock ratio each year as time goes on.