How much have the "401(k) plan" and IRA scheme contribute to the bull market gain of 1982-2000?
je12j...@yahoo.com
(K) or IRA before 59-1/2 years old?
People can only put money into buy stocks, but not pull money out
until 59-1/2, with false assumptions that
(1) Future tax rates will always be lower than what is now
(2) Past performance of 70 years of stock market is the ballpark
numbers of future results
(3) "Investing" returns can always compound - what if the best
approach is putting money in money market fund inside 401(k)?
(4) Long-term investment (30-50 years) is always a gain
Rod Speed
> What is the rationale behind "10% penalty" if pulling money out of 401 (K) or IRA before 59-1/2 years old?
Its done that way to discourage people from taking their money out of retirement accounts.
> People can only put money into buy stocks, but not pull money out until 59-1/2,
They can however have the money in CDs or treasurys etc.
> with false assumptions that
> (1) Future tax rates will always be lower than what is now
> (2) Past performance of 70 years of stock market is the ballpark numbers of future results
You arent required to have that money in stockes.
> (3) "Investing" returns can always compound - what if the best
> approach is putting money in money market fund inside 401(k)?
> (4) Long-term investment (30-50 years) is always a gain
That isnt a false assumption.