What’s wrong with a 401K

Most people think that is appropriate to contribute as much as you can to your company 401(k), no matter what. My opinion is that it is not always the best way to invest your money. You should consider several factors before investing in your company 401K, like, what are your investment choices, whether or not the employer matches your contribution, and will you need that money before you retire. The biggest problems I have with 401(k)s is that people contribute to them in their 20s and early 30s, however when they approach their mid-30s they decide to make an investment or buy a house and find that they have no savings. There only choice is to raid there 401(k). Unfortunately, the 401(k) has not performed that well and so now the end up taking the money out paying taxes and penalties which can be as much is 50%. This happens a lot more often than you think. My suggestion, carefully consider whether to invest in your 401(k), there are much better option sometimes, such as the Roth IRA.