Why does everyone blindly trust the 401k and feel it's the best investment? The more I think about it the more it seems like a bad idea. Btw, I am not a US citizen and don't have anything (contd...)

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They're not going to steal your 401k, if that's what you're asking, any more than any other bank can/will. If they make a change you don't like you can get out. Not sure what the fear is. Tax advantaged makes for a real difference though. Roth vs traditional is a tax strategy question, but both offer advantages over a full-tax account

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Run some simple Excel numbers: if you assume you save $10k pre-tax, 25% tax rate, 10% returns, after 10 years you have $120k post-tax in either a Roth or traditional account, or $106k if you saved it outside of a retirement account. Tough to make up that difference picking a better mutual fund, especially when Vanguard is an industry leader in many respects.

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You can choose pretty much any Vanguard mutual fund. Your financial advisor doesn't like that he can't get fees from it.

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It's the employer match that incentivizes contributions. Not that any big 4 are that rich in that regard 😓

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😂 D1

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Because 99% of people who try to micromanage their money underperform the market. Also, if you really need it there are plenty of ways to get at it.

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My financial adviser didn't like the Deloitte 401K. Told me to get the match (1.5% yay🙄) and has the rest going into a Roth IRA, 529, and an array of mutual funds

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The fact it's pre tax is a big plus

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Hmmm... forced savings and tax deferred seems like it would trump some perceived benefit of an actively managed fund. Most actively managed funds underperform the market in the long term.

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Market collapse would affect all investments, not just 401ks. They are not immune - see 2009-2011.

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You'd rather trust the government to protect your retirement income? No thank you.

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Do you not have the option to select what it's invested in? S&P 500 is a good bet.

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@D1 lol

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So what doesn't he like about vanguard?

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If you don't already have money in a Traditional IRA, you can contribute to an IRA and convert to a Roth even if you're over the income limit. It's called a back door Roth IRA.

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A 401k isn't in itself an investment.

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Stretch it out to 30 years: $1.23M vs 775k

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401k isn't an investment. It is an account

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You know your 401k assets aren't on deposit with the government, right?

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