• ryathal@sh.itjust.works
    link
    fedilink
    arrow-up
    7
    ·
    1 year ago

    401k works fine if you actually use it. A big problem is people didn’t contribute, where pensions generally had mandatory contributions. Also letting people borrow on them was a bad idea.

    • Jamie@jamie.moe
      link
      fedilink
      arrow-up
      6
      ·
      edit-2
      1 year ago

      And borrowing on them is just a bad idea. At least in the case of my 401k, there’s no early payoff, you don’t make interest off it while it’s borrowed, it really can hurt in the long term unless the loan amount is very small.

      I looked out of curiosity because I want to buy a house somewhere in the next 5 years, and immediately ruled out any consideration of borrowing off 401k.