123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Business >> View Article

How The Insiders Have Stolen Your Retirement: The 401(k)!

Profile Picture
By Author: Dr. Scott Brown, Ph.D.
Total Articles: 6
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

Mutual funds were moderately successful in creating a presence in the stock market until the advent of the investment retirement account and in particular the 401(k). Corporate insiders persuaded the federal government to allow for the 401(k) in lieu of offering employees the traditional pension. When this happened the employees lost the protection of a specialized financial manager who could manage both the return and the risk of the retirement money of the worker.
This forced employees who are supposed to specialize in their work area into the field financial management with no training whatsoever. The 401(k) effectively FORCES individuals into mutual funds that as I just mentioned were notorious at the turn of the last century for defrauding the public of its savings. Ironically, these same executives had at the time, and still have, their company department of corporate attorneys. These secret departments do nothing but invent new ways for corporate insiders to suck more money out of the firm in the form of perquisites, stock options, and golden parachutes. This is the new form of executive stewardship over ...
... the shareholder value and employee retirement!
Why is this so tough on the employee? The 401(k) plans do not offer individual stocks only mutual funds. What a scam! Corporate executives have effectively forced you to place your retirement dollars with their cronies in the securities industry who manage these investment pools. If you could talk to someone in the 1920's about this they would be shocked. Someone from back when these investment pools were actively fleecing the public would see this as a criminal act perpetrated by the US federal government, inside corporate executives, and mutual fund managers.
Does that mean the 401(k) is a bad deal? That depends. If your employer matches a percentage of your wages it may be a fair deal but you should only contribute only up to the matching limit. After contributing the maximum matching amount to your 401(k) then put the rest in a Roth IRA. If your 401(k) provider offers an indexed mutual fund then put your money into that. An indexed mutual fund uses a stock market index such as the S&P500 to guide which stocks are bought. The biggest and oldest indexed mutual fund is the Vanguard 500 (VFINX).
A computer divvies up the cash in the fund to match the index as closely as a possible. As such, there is not fund manager to sitting on your hard earned retirement savings to rip you off in bogus fees.

About the author:
ABOUT THE AUTHOR: Dr. Scott Brown, Ph.D., a.k.a. The Wallet Doctor, is a successful futures trader, real estate investor, and stock investor. Dr. Brown holds a Ph.D. in finance from the University of South Carolina and a Master in International Management from the prestigious American Graduate School of International Business a.k.a. Thunderbird. His 1998 articles in Technical Analysis of Stocks and Commodities were prophetic in predicting an impending stock market crash. He has helped many people become profitable investors teaching them to look out over many years to spot stocks that are low and primed for rise in the new bull market. His second article met with approval by Dr. Bob Shiller of Yale University. Dr. Shiller is the economist that Alan Greenspan most highly regards who coined the term Irrational Exuberance. In 1998 he was shouting out to the world to get out of the stock market but now he is shouting to everyone that it is time to get in! The Wallet Doctor is not only sought after for investment advice and coaching in stock investing but also in futures trading and real estate investing. He also teaches investing in Spanish and Portuguese. His free newsletter www.WalletDoctor.comis jam packed with personal finance and investment tips and advice! His course which is described in detail at www.BonanzaBase.comteaches home study stock market investment students more than an undergraduate or MBA degree in finance...how does he know? Because he is also a university finance professor!


Total Views: 217Word Count: 702See All articles From Author

Add Comment

Business Articles

1. Military Spring Snap Hooks | Buckles International
Author: Buckles International

2. Fast Cash Loans Online: An Enticing Combination Of Features
Author: Lucy Lloyd

3. Why Retail Billing Software Is Essential For Modern Retail Businesses
Author: Ginesys

4. Top Quality Kvak Bird Food From Feather Incorporation
Author: Kvak bird food

5. Easy & Quick Short Term Loans Online To Make Your Life Easier
Author: Robert Miller

6. Luxury Wedding Cars: The Perfect Touch For Your Big Day
Author: Andy

7. Unlock Growth Opportunities With The Booming Mena Bpo Market
Author: Andy

8. Top 10 Website Development Company In India
Author: Karthika

9. Efficient Online Petrol Pump Software For Modern Fuel Management
Author: Rupasri

10. Why Is Financial Reporting Crucial For The Success Of Small Businesses?
Author: Bappaditta Jana

11. How Iso 27001 Consultancy In Telangana Helps Mitigate Cybersecurity Risks
Author: Qadit

12. The Importance Of Iso 27001 Consultancy In Telangana
Author: Qadit

13. The Importance Of Strategic Finance In Today's Business!
Author: Bappaditta Jana

14. Make Restaurant Management Easier With Our Restosoft-restaurant Billing Software
Author: restosoft

15. Osumare: The Best Seo Company In Delhi
Author: Anushka

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: