Quote:
Paying extra to buy PM on credit is all wrong. If you don't have the $ to buy for cash, you have other aspects of your finances that you need to work on first. - BiggFredd
I agree completely, which is why I buy on-line from reputable dealers and use a personal check to do it. I do not use a CC for buying PMs. It takes a few more days to receive the PMs but that is not a problem.
Other responders have mentioned some very good points about 401Ks. I had a 410K plan for 23 years. I funded it to the max every month. I also nagged my wife into contributing to her 403B plan at work and to a pair of IRAs for both of us. I could not get her to sign on for a Roth IRA, though, so funded hers and mine from my own salary. Because of all this AND a very helpful stock market, I retired at age 55 with plenty of money to live a long and comfortable lifestyle.
It is my belief that the 401K is the greatest wealth creation engine ever created... and it was basically an accident of interpretation. Ted Benna was a benefits manager for a private company and he is the one who convinced the IRS that section 401(k) of the IRS regs applies to everyone who works for a private company. That was back around 1979-1980. The IRS agreed and the number of 401K plans literally exploded.
That said, these are not auto-pilot plans that can be forgotten until retirement time. They should be reviewed quarterly and then rebalanced yearly. The investments should be well diversified and employees should lobby their employers to make sure that they are, that good investment choices are available, and that the fees are minimal. Used properly, they are a powerful tool for retirement planning.
To be of maximum benefit, though, the employee needs to acquire the necessary knowledge. Reading a few books on 401K plans is usually a good start. I read several of them and took some good info from each of them. Anyone can do this, IMO. The real question is... will they?
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Posted 07/20/2011 10:26 pm
