401k Plan might be a Bigger PONZI Scheme than Social Security. 401k Bubble will BURST.

[Stuntone]

I'm not a finance guy, but I don't think it's a scam. 401k's do hold tangible assets. However, it shouldn't be your only retirement vehicle and why would you want to pull it all out at once? I get that it's "fractional reserve" retirement, but unless the system collapses entirely there is no reason to do that and if the system collapses, money is useless anyway.

You don't need to be a financial expect, just need to know is basic mathematics.

70 million active participants. 14 Trillion combined asset total.​

You think these 401k plan owners have any intentions of paying a fraction of that out? Even if they wanted to? They don't have that kind of money.

Same when the housing market collapse. Banks needed that insurance fallback money for all of the foreclosure. They didn't have it.


As long as not too many people come for their money at the same time, the Ponzi scheme can continue.

 

[Vandelay]

You don't need to be a financial expect, just need to know is basic mathematics.

70 million active participants. 14 Trillion combined asset total.​

You think these 401k plan owners have any intentions of paying a fraction of that out? Even if they wanted to? They don't have that kind of money.

Same when the housing market collapse. Banks needed that insurance fallback money for all of the foreclosure. They didn't have it.


As long as not too many people come for their money at the same time, the Ponzi scheme can continue.

What I'm saying is, no financial institution plans on paying everything out. I'm acknowledging your point, but I'm making a broader economic statement about the whole system. I won't say it's a ponzi, because it does provide a greater net benefit (its positive NPV) than what it's actually taking, but I get how it can be viewed as a ponzi.

Liquid net worth and theoretical net worth is a very dicey game.

 

[JT-Money]

Definitely. i've seen it. MSNBC has done numerous documentary on it.

Companies get kickbacks for signing you up for 401k. That's why they only have a few options to select from.

They're not stealing, the fees are just hidden. People are so ignorant, they think these plans are free. Over a decade I ask everyone on here about their fees for their plan. They didn't

Elizabeth Warren has been hounding the financial sector about hidden fees since the 2008 collapse. She admit that the Financial Institutes got in her azz and she had to fall back.

I'm more worried about the Federal government. Because laws exist for what companies can do with their own 401Ks. But the Government is 40 Trillion in debt and has no intention of paying that debt down. They would rather just confiscate money from citizens just like during the Great Depression. You have 10-13 Trillion in 401K plans the Government would love to get it's hands on.



Argentina (2008): The government nationalized $30 billion in private pension assets, forcing 12 million workers to move their savings from private funds to the state-run ANSES system.

Hungary (2010–2011): The government forced the transfer of roughly $14 billion in private pension assets (representing about 97% of private assets) to the state. Citizens were told to either move their savings to state control or lose the right to the basic state pension.

Poland (2013–2014): The government transferred approximately $39 billion in assets (roughly half of the total assets) from private pension funds (OFE) to the state social security system (ZUS).

Bulgaria (2010): The government transferred $300 million of private early retirement savings to the state pension scheme.

Nicaragua (2024): The government eliminated and confiscated a retirement fund for Catholic priests.

 

[MasterOfAllHeSurveyz]

I'm not a finance guy, but I don't think it's a scam. 401k's do hold tangible assets. However, it shouldn't be your only retirement vehicle and why would you want to pull it all out at once? I get that it's "fractional reserve" retirement, but unless the system collapses entirely there is no reason to do that and if the system collapses, money is useless anyway.

These dudes don't have any money. You're engaging with dudes that don't even have bank accounts. If they have a job, they using a shytty paycard service like DailyPay because they can't manage their money and actually wait for payday. They don't even have significant contributions in Social Security because of inconsistent work history. Ask them to check how much they have in Social Security. They land on the site for the first time bewildered and pissed that they have to go through the Login.GOV or ID.me verification process to see it.

If you ever wonder why black folks are at the bottom of every metric when it comes to money/wealth and watched every other non-white group lap us in our lifetimes, dumb ass posts like these are the reason. Not one of them will show you how much money they actually have in a saving/checking account.They'll only show you that fan of cash from their income tax refund. 'Tis the season for stuntin' on the 'Gram.

 

[JT-Money]

These dudes don't have any money. You're engaging with dudes that don't even have bank accounts. If they have a job, they using a shytty paycard service like DailyPay because they can't manage their money and actually wait for payday. They don't even have significant contributions in Social Security because of inconsistent work history. Ask them to check how much they have in Social Security. They land on the site for the first time bewildered and pissed that they have to go through the Login.GOV or ID.me verification process to see it.

If you ever wonder why black folks are at the bottom of every metric when it comes to money/wealth and watched every other non-white group lap us in our lifetimes, dumb ass posts like these are the reason. Not one of them will show you how much money they actually have in a saving/checking account.They'll only show you that fan of cash from their income tax refund. 'Tis the season for stuntin' on the 'Gram.

Sound like you projecting. Just because people don't think a 401K is that great doesn't mean their broke. I think a Roth 401K is the way to go even over a pension. Because most pension funds are so mismanaged and underfunded.

And yes I make well over 6 figures before you call me broke.

 

[Stuntone]

These dudes don't have any money. You're engaging with dudes that don't even have bank accounts. If they have a job, they using a shytty paycard service like DailyPay because they can't manage their money and actually wait for payday. They don't even have significant contributions in Social Security because of inconsistent work history. Ask them to check how much they have in Social Security. They land on the site for the first time bewildered and pissed that they have to go through the Login.GOV or ID.me verification process to see it.

If you ever wonder why black folks are at the bottom of every metric when it comes to money/wealth and watched every other non-white group lap us in our lifetimes, dumb ass posts like these are the reason. Not one of them will show you how much money they actually have in a saving/checking account.They'll only show you that fan of cash from their income tax refund. 'Tis the season for stuntin' on the 'Gram.

Wrong dude. I used my 401k to pay my house off. Now I have under $1000 in monthly bills. And I making over 150k a year in Louisiana.

We're at the bottom bcuz we don't research and study. We take Cacs word for things, just like this 401k plan.

It's insane to let some hold your money for 30, 40, 50 years and then they spoon feed you once you turn 65. The whole they're gambling and taking risk with it. If they lose, you lose. If they win, they win.

 

[Rekkapryde]

Sound like you projecting. Just because people don't think a 401K is that great doesn't mean their broke. I think a Roth 401K is the way to go even over a pension. Because most pension funds are so mismanaged and underfunded.

And yes I make well over 6 figures before you call me broke.

I got both. My current job I did a Roth 401. Wife has a traditional at her job, but she also has been getting stock for 20 years. Got a rollover ira from my first couple of jobs as well.

We both been maxing our 401ks for the last 8 years.

 

[JT-Money]

Wrong dude. I used my 401k to pay my house off. Now I have under $1000 in monthly bills. And I making over 150k a year in Louisiana.

We're at the bottom bcuz we don't research and study. We take Cacs word for things, just like this 401k plan.

It's insane to let some hold your money for 30, 40, 50 years and then they spoon feed you once you turn 65. The whole they're gambling and taking risk with it. If they lose, you lose. If they win, they win.

People with money are the ones most likely to question the status quo. And don't blindly believe these crooked Politicians and greedy CEOs. I diversify and damn sure ain't putting all my money in a 401K. When you don't even know how high taxes will be when you retire. If they can't steal the money directly they'll just tax the hell out of you later.

Broke people are the ones who go along with the flow. And believe everything their told. Most won't even realize they've been robbed until it's too late.

 

[JT-Money]

I got both. My current job I did a Roth 401. Wife has a traditional at her job, but she also has been getting stock for 20 years. Got a rollover ira from my first couple of jobs as well.

We both been maxing our 401ks for the last 8 years.

I would much rather put my money in a after-tax plan like a Roth 401k. Because Taxes have no way to go but up in the future at these debt levels. I think the dollar is toast also but that's a discussion for another day. Trying to limit my exposure to it also.

 

[Rekkapryde]

I would much rather put my money in a after-tax plan like a Roth 401k. Because Taxes have no way to go but up in the future at these debt levels. I think the dollar is toast also but that's a discussion for another day. Trying to limit my exposure to it also.

My employer matches a full 6% in addition to the allowable 401k max per year. So I max out the 24.5k and they adding another 8-9k. It's outpacing inflation easily, so I don't care. But yeah, I did a Roth 401 at my current job for the exact reason.

We also have a couple of bonds that we just keep rollin over the earnings. It's earning over a rack a month right now.

Old lady got a few hundreds of her company's stock too in addition to her traditional 401. It's more than outpaced inflation even with the recessions.

Just glad to be blessed and gucci. And be SMART with our bread. She's a fukkin cheapskate but lawd it pays dividends.

 

[MyApps]

People aint believing until they're seeing their own blood.

My 401k got ravaged in the 2008 economy crisis. After that I studied 401k issues and became a obsessed with scams and schemes. Now I know a good con when i see one.

It's actually brilliantly wicked. Your money is locked away, but you can see it. You have to wait til 65 to touch it. They're making a killing in it right now.

You need your money right now to make more money.

So this means we should take our money out and eat the penalty right?

I was thinking of doing this to finance a house.

 

[JT-Money]

My employer matches a full 6% in addition to the allowable 401k max per year. So I max out the 24.5k and they adding another 8-9k. It's outpacing inflation easily, so I don't care. But yeah, I did a Roth 401 at my current job for the exact reason.

We also have a couple of bonds that we just keep rollin over the earnings. It's earning over a rack a month right now.

Old lady got a few hundreds of her company's stock too in addition to her traditional. It's more than outpaced inflation even with the recessions.

Just glad to be blessed and gucci. And be SMART with our bread. She's a fukkin cheapskate, but lawd it pays dividends.

I like the fact there is no income limit on a Roth 401k unlike the Roth IRA. I put money in almost anything I can Bonds, CDs, HYSA, ETFs, etc.

While most people I know spend money on frivolous crap they don't need. And some of these people make 6 figures yet have tens of thousands in credit card debt. I've been begging family members and friends to invest more or just pay down debt. But nope they have to spend it as soon as they get it. Lots of People are gonna be in SOL as the economy continues to unravel.

The Typical American Has Less Than $1,000 Saved for Retirement—Here’s How to Make Sure You’re Contributing Enough

https://www.rd.com/article/report-americans-retirement-savings/

401(k) withdrawal are at a record high. Consider these money-saving options first​

401(k) withdrawal are at a record high. Consider these money-saving options first

Why early withdrawals raise a red flag with experts and smarter ways to get money in an emergency.

www.cnbc.com

 

[JT-Money]

So this means we should take our money out and eat the penalty right?

I was thinking of doing this to finance a house.

Housing prices still have a ways to fall. Canada housing collapse has just begun and the US is next.

 

[MasterOfAllHeSurveyz]

Sound like you projecting. Just because people don't think a 401K is that great doesn't mean their broke. I think a Roth 401K is the way to go even over a pension. Because most pension funds are so mismanaged and underfunded.

And yes I make well over 6 figures before you call me broke.

Prove it. Just a screenshot of a paystub and what's in your savings/checking account. Should take you less than a minute to edit out your personal details on a phone.

Wrong dude. I used my 401k to pay my house off. Now I have under $1000 in monthly bills. And I making over 150k a year in Louisiana.

We're at the bottom bcuz we don't research and study. We take Cacs word for things, just like this 401k plan.

It's insane to let some hold your money for 30, 40, 50 years and then they spoon feed you once you turn 65. The whole they're gambling and taking risk with it. If they lose, you lose. If they win, they win.

Stop fukking lying. Explain to everyone here how YOU took money out of your 401k to pay your home off. If it's a trad 401k, the withdrawal gets added to your W2 income for the year. If you take out any significant money required to pay off a house, you just put yourself in the highest tax bracket. That's not even including the 10% penalty taking the money out before 59.5. Hell, the broker will hold 20% off the top for withholding to Uncle Sam by law. If it's a Roth 401k, you have the pro-rate rule, the 5 year "locked" rule, the hardship rule and the $50k max loan rule.

If the plan is with an employer, whether it's trad or Roth, your plan probably prevents you from taking anything out until you retire or quit the job where you can do a rollover to a IRA.

 

[UncleTomFord15]

How is a 401k a scam