P3. What is a 401k Plan?

401k plans are spoken about very frequently in the US, and represent a potentially very tax efficient manner for money to be set aside for the future. This video introduces what 401k plans are - building on the concepts of taxes and compounding, providers and users of capital, principles of taxation, mutual funds and even dollar-cost averaging.

Category:

Education

Tags:

• saving
• investing
• 401k
• plan
• savings
• investment
• money
• financial
• services
• products
• Michael
• Fischer
• savingandinvesting.com
• economic
• economy

[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.

[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.

[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.

[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

[sorkoth]

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

[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.

[jvswerbo]

@MensHelpTv

You sure about that? What was she invested in?

[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.