In this episode, host Kevin Lum focuses on the downsides of investing in a 401k. He starts by providing an overview of the history of 401k and the importance of understanding the potential costs associated with this popular retirement savings option.
The first downside discussed is the high fees you can find in a 401k plan.
The second downside of investing in a 401k: limited investment options. He explains how having limited options in a 401k plan can impact potential returns and diversification
The third downside discussed is the high potential tax burden in retirement. Kevin explains the tax implications of withdrawing from a 401k in retirement and compares it to other investment options with lower tax implications.
https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator