TBD
To Be Destroyed

  • JcbAzPx@lemmy.world
    link
    fedilink
    English
    arrow-up
    3
    arrow-down
    1
    ·
    1 day ago

    401k is a scam that was used to help kill pensions. The only reason to use one if your job locks part of your pay behind matching some of your contributions.

    Even the tax savings is a lie. It’s just a deferment and you pay the full income tax rate on it when you are eventually forced to withdrawal it. Even on the gains if you’re lucky enough to be up when you need it.

    • 13igTyme@lemmy.world
      link
      fedilink
      arrow-up
      2
      ·
      edit-2
      23 hours ago

      Yes. You eventually pay the taxes on it. However, there is this thing you’ve never heard of called “Marginal Tax Brackets” This makes it so that when I do eventually pay the taxes on it, I’m not paying at the income level of when I was employed and instead much lower when I’m retired.

      Pensions are better, but calling a 401k a scam just makes you look stupid.

      • JcbAzPx@lemmy.world
        link
        fedilink
        English
        arrow-up
        1
        ·
        22 hours ago

        If you have enough in it to live comfortably, it’s not better than rolling your own and paying at the capital gains rate. To actually save you better really like tuna fish sandwiches.

    • Cgers@lemmy.dbzer0.com
      link
      fedilink
      arrow-up
      2
      arrow-down
      1
      ·
      24 hours ago

      It also systematically intentionally forces the most vulnerable to be entirely dependent and aligned on capitalism