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--- FreeTrader (8/28/2012)
 
Employer pensions, such as corporate pension (e.g. Boeing pension) and governmental pension, are great deals to employees. But they are gone just because they are great to employees. Even corporate pensions are risky if beneficiaries choose to invest their pension plans into the company's stock if applicable.

With tax deferral advantages:
Substantial majority of long term investments can't beat inflation. On the average, one has to wait 30 years to mature the advantage while the accumulative inflation by then may be well above 20X.

401K(Funds):
Fund returns are not consistent, typically good this year then bad next because the goal is to sell out fund shares at high and buy back at low or just let it get dismissed to zero. Issuing fund is exactly like issuing stocks at zero cost, well even easiser because issuing stocks needs to form a company and make stories to get it entrusted by public while issuing funds even doesn't need a piece of paper.

Some public companies let employees invest stocks of its own in 401k plan. In such a case, one has to be good at playing the stock of the employer.

IRA (All kinds Tradational, ROTH and 401K Carryover): Unless the owner is good at trading/investing stocks, it's no difference from 401K.

Educational 529: the same reasons as 401K.

With "deceptive" knowledgeable edge:
Financial Advisors(All kinds Individual/Corporate/Brokerage FA): Good I/C/B-FAs don't need the job, instead, they can run their own hedge fund.

ETF
ETFs are no more than a fund that trades exactly like a stock. ETFs that are offered at Zero Trading Commissions are especially intended to not be bought back by issuers because commissions waived to buyers by brokerage are paid by issuers, at a wholesale discount though. ETF has nothing underlying to peg, just worthless electronic paper. For example, GLD is worthless electronic reflection of Gold Futures, but it has no firm legal power to be settled with bullions.

In Wall Street, only Investment Bankers and Hedge fund Managers are predators who stealthily run scams against and bloodily slaughter all the rest preys, in ways legal, illegal and legalizing.

Solutions:
Either learn trading or invest on businesses such as RE that can bring passive cash flow when you are old.

If you are not good at investment/trading, cash out all those scams and put them in real estate which is second to stock "investment" although in the coming decade RE business will be harder and harder. The bottom line is that you still can get something rather than inflation eats it up or when your turning 59 1/2 finds a stock market recession that keeps you having to work or after 59 1/2 you successfully retire and before long a recession punches your portfolio - you as a senior have to struggle to find a job.

Better to keep 401K if there is a corporate match. But in the end of each year, cash out full amount and let the empty shell account run for the next year. At least, you can take advantage of the corporate match which is the only valuable thing.

 
 
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