Quote:
Originally Posted by AtlantaLife&Health
401K's are risky.
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Sorry but I find this to be a meaningless statement. A 401k or an IRA or Roth is just a type of account. It isn't safe or risky. What determines the level of risk within a 401k is how you invest the money that you contribute to the account. You can choose very safe investments. You can choose moderate ones or you can choose more risky ones or some combination of all of that. You should invest based on your time horizon, risk tolerance and retirement goals.
Whether or not a 401k should be your only source of retirement planning depends a lot on your situation. Folks with higher incomes, over 100K at least, will need other investments because of the contribution limit for 401k plans. Lower income workers may be able to do just fine with a 401k and Social Security.