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Originally Posted by Slingin Sammy 33
Your point about SS being stolen is right, but part of saden's point is also correct. The difference in our portfolio's is partially because the funds/economy are down, but also keep in mind the guys running our 401Ks and the mutual funds they invest in are often colluding together in a major way. Put the 401K money in this fund to help me get my bonus, then I'll skim you a percentage here, percentage there, bonus $$$ off the top of contributions, plus the fact that we don't have direct control of our 401Ks to move money out quickly when there is a drastic market turn. By the time we can react, it's too late.
I'm done allowing others control over my $$$. I'm putting the minimum required in my 401K (my corp match isn't very good). Once the economy turns a bit, my savings will be going into a self-directed IRA, or similar vehicle that I can control as necessary, or into expanding my business.
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Putting money into one fund or the other usually does not change a persons bonus structure as they get paid by the company based on the ammount not the fund family. For example. I work for campany ABC and I sell a 401 plan to some company my pay is based on the dollar amount not the fund the money is placed. I would also say that 99.99% of the people who sell the funds have never met anyone who works or run these fund families. Take a company like INK they have hundreds a fund families which range in different risk and its up to the writer or broker to decide which risk tollerence their client matches then have the customer pick a fund within the risk. If I'm correct with your 401 you should have at some point where you picked the funds and sat down with someone to do this. I had a series 6 and 63 lic to sell mutural funds but found my time better spent selling property and casualty and traditional life products so I let that lic. go a few years back.
If you pull the money out of your 401 and do not put it back into another type of investment (not a business) you may have some penalties and tax issues.