5 Reasons to Not Invest in a 401K

[bjl584]

http://www.marketwatch.com/story/5-reasons-not-to-contribute-to-your-401k-2013-08-05?pagenumber=1

[disneysteve]

I think his reasons are reasonable but I don't like the tabloid headline because what will people remember? They'll remember "you shouldn't invest in your 401k".

I will take issue with his recommended EF of 6 months of income. Standard advice is 6 months of expenses, not income, though saving more certainly isn't a bad thing.

[BuckyBadger]

I hate articles like that. They tack on an alarmist headline and then spout off...

Nothing he's saying is *wrong* per se, but it's just so poorly presented in black and white terms. Nearly every one of those points has a wide range of acceptable answers/actions that are appropriate when looking at a big picture.

I agree with Steve, the "take away" is from the headline, which is not fairly presented.

[kalikala1980]

I put 4% into my 401k to get the employer match. I don't like pre-tax accounts but I would be dumb to turn down free money. They also have profit sharing and I just got an extra $1350. If it didn't get a match, I would not contribute to a 401k

[moneysma]

I'm not a huge fan of the headline either but in order to get people's attention, you have to have your headline stick out. That headline works because it draws people in.

[GrimJack]

Since there are now Roth 401k/403bs available, I think the blanket condemnation should be looked at again.