401K - Y?

Yeah, you know what I mean. I don't have a 401k and neither does my husband. Y? you ask? Because in my former non-homeschooling/crafting life, I was a Human Resources Generalist with a specialty in Benefits. That means I was the person who gave you all your options, enrolled you, played with your paycheck, gave you 100 forms to fill out, and if you wanted to change anything later I couldn't let you legally.

What I learned in Generalist school was that a 401k account was designed to let the Average Joe (the plumber - hahaha, I kill me!) invest in his future by putting aside small portions of his paycheck. That way Joe could possibly retire before he worked himself to death. HR people are always told to push this on the employee; it's for their benefit; hey, the company is even chipping in to boost your account, etc.

What they don't emphasize is the INVEST part, which means your money is subject to the ups and downs of Wall Street - as many of you who have such an account have found out. This is not a good thing if you aren't inclined to stock market analysis. You don't know how to "diversify" and nobody teaches you.

I also feel a person isn't adequately informed BEFORE they decide to open said account how difficult it is to get that money back. A lovely young lady in Kevin's office is finding out all about that right now. That's right, trying to get out while there's still money TO get out. Nope, can't do that - hardship, house downpayment, college tuition clause and all. OOOO! And don't forget the penalty fees. What?! You didn't know how hard it was going to be and the weeks it would take. You were told all of that before you signed on the dotted line. Oh, maybe you weren't; well you were supposed to read every word in the information packet you were given. What's that? You couldn't read the paragraphs at the bottom of each page typed in 4pt subscript. Hmmmm, oh well.

401K-Y - if you haven't, don't. Stuffing the money under your mattress or buried in a coffee can is a much better idea. We'll talk more about disclaimers soon.