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Rachel Maddow warns us all about our 401Ks(authorized in 1978). Our nest eggs give us a false sense of security. They are riddled with hidden fees. Everyone needs to see this segment of Rachel Maddow. Meanwhile, don’t be lulled into a false sense of security.
Just a few tidbits about your 401k–it is only worth 76% of what you see. Why? Taxes haven’t been taken out. The 403B is its ugly evil twin (those often have annuity zingers attached that cost you money). That’s if you live in Virginia. Most people who contribute to a plan get some free money. That is good. However, if you don’t get matching funds, you are far better off using an IRA as a retirement vehicle. Why? More choices. Company 401k plans are usually limited in choices.
