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Mid Michigan | I'm not talking about the .01 percenters that become millionares with a 401k. I'm talking about the 99.9% that don't. Too many distractions in life get in the way for the average person to achieve much wealth with it because events happen that cause people to withdraw them before they reach the promise land or stop contributing to them as intended or at all. This post is a perfect example. Divorce, new car purchase, paying off debt or student loans, cabin up north, vacations, etc. One of my friends used $20,000 from for a swimming pool. Lost the house in forclosure and never had another 401k again. Another got divorced and basically went back to starting line after 25 years after giving up half of his and not being able to be in it for a while. Another installed a $20,000 dollar geothermal system in their house. Took 401 out to do that. I have another friend that bought a trailer up north and she took out a loan on hers and has to pay herself back. Real fine retirement plan when you draw it back out and have to pay yourself back with interest. Might as well be trying to walk on ball bearings as to invest that way. The trick is to stay the course and manage it along the way and very few end up doing it. The net worth of americans shows it. Notice the red on the chart without the house. 50 and 60 year olds having less net worth than one car value. The 401k retirement plans are going to be the next crisis with the student loans as in people won't be able to afford to retire. It's already happening as more americans are working longer because of no cash flow as in the 401k retirement didn't work as planned. Social security is propping up retired people, not 401k plans that people have the "option" of participating in or not.
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Taking money out of 401k with no penalty??
