P3. What is a 401k Plan?

[sxyboyteen]

Stop making other companies rich! 401k is a complete fail. It may seem like free money but it is not. Look up diversified portfolio, penalties... more importantly look up what happens when you are allowed to retire and the economy is in shambles. The proof is look at all the people right now who invested in a 401k and lost thousands, yet the people who own these investing companies drink a latte while you scrounge for money. Stop being lazy and create a company that's the only safe haven...

[FrankDinner27]

onlinestockforum(.)com

[bonfirejovi]

I love your videos. Can you do something on insider trading and its pros and cons?

[savingandinvesting]

@bonfirejovi Thank you for the idea - will put on list for sure - one of the cons would def. be that it is illegal in many countries and you can go to jail but it is an interesting topic especially with respect to insider (management) selling - thank you very much and thank you for interest - Michael.

[sorkoth]

if you think a 401k is your mother in laws bra size you might be a redneck...

[shakaama]

did you make this video just for me by the way? or was it on your agenda anyway?

I took out my 401k it was gushing money. Even with the losses, they still required it be taxed. It goes against the logic of "income" if you suffer loses. The basis of the law was for an increase in value. with no increase, there should not be a tax on the return. So for pulling the money out, there was a penalty and taxes on top of the losses.

[jvswerbo]

@shakaama

That was the worst move you could have made. The market has historically always comeback. The reason they required it to be taxed was, regardless of gains or losses, that you never paid tax on that money originally.

[shakaama]

@jvswerbo the market still has not gotten to the same level it was when i was in it. So regardless of the gains it's made so far, the real value has not been achieved.

I invested it in my own business and will never work for another human, for payroll, ever again in my life.

[daddyjuju]

can u roll over you 401k to an already existing mutual fund or ira?

[savingandinvesting]

I tried to answer this question here there is a character limit that made this impossible - I have put and reply on the saving and investing forum - I hope that helps - see also videos on taxes (and principles of taxation), retirement plans and compounding please. Best regards, Michael.

[MensHelpTv]

Well the 401k my wife had went from, 45 grand and when the slump happen in 2008-2009.

16 grand and lowering so we took this out and got a home, the 401 was never going to recover upon investment in the stocks that was on the plan.

We had a choise to see the stock to crash or walk away with something, but we had loss also.

[jvswerbo]

@MensHelpTv

You sure about that? What was she invested in?

[MrDebtsolution]

Who else, but I liked it!

[papijay84]

man thanks for your help,but i do not agree with a system that doesn't guarantee my hole savings back and its to dangerous to save your money for all those years because of the decrease in value of the dollar that industrial era is now over i could save 40000 dollars and get 15000 in return after all those years and you have to admit that a reality. The money is an exange tool it's flow agent and it have to flow or you'll lose many oportunities... thanks

[cooolguy1981]

Thank you so much for sharing knowledge.

It was very useful.

[Therippleaffect]

70 and a half

that sucks i am in australia and we were annoyed when they just lifted our retirement age from 65 to 67

[Stockbuff826]

Hey thanks for taking the time to explain this in detail, i was wondering what is the youngest age you can contribute?

[savingandinvesting]

In general, an employee must be allowed to participate in a qualified retirement plan if he or she meets both of the following requirements:

- Has reached age 21

- Has at least 1 year of service

Many plans do not have a minimum age but only the above affects the fact that employees must be allowed to join. Hope that helps, best regards, Michael.

[bunnymimipipi]

thank you, you have been helping me throught my investment course. By the way, you look really like a banker I fancy. :)

[savingandinvesting]

Thank you very much.

[Rappapa]

Nice video, thanks!

[louis345]

Hey Thanks for taking the time to explain this.

[savingandinvesting]

Thank you for the comment - I hope you enjoy the channel.

[shakaama]

First comment, first viewer, first rater.

I'm number 1. :)

[savingandinvesting]

Thanks for that.