In today's episode Nicholas Olesen talks through a recent article that was published in Bloomberg with the headline "401(k) Plans No Longer Make Sense For Most Savers". While we all know headlines are written for clicks, we thought it would be useful to talk through how you should take broad advice and personalize it for yourself and also give another viewpoint.
During the episode Nicholas shares:
- How taxes pay an important role in your decision and why your future tax assumptions are most important
- The true internal cost of 401(k) plan investments
- How different retirement savings and options are today than in 1980 (the date the article references)
- Why 401(k) plans DO make sense for most savers, but maybe a Roth 401(k) instead of traditional
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The original Bloomberg article can be found here: https://www.bloomberg.com/opinion/articles/2020-07-21/401-k-plans-no-longer-make-much-sense-for-savers