Is the 401K a Ponzi Scheme? Discuss « The Confluence:
"...So, to recap: the 401K promises gigantic returns to people who get in on the ground floor. More and younger investors are required to also contribute to prop up the stock prices of the companies your funds are dumped into. Older investors can withdraw all of their funds penalty free; younger investors cannot. The savings are not guaranteed and can be wiped out by market conditions, or diminished by the withdrawal of the generation above you.
Sounds fairly Ponziesque to me.
That’s my theory and I’m sticking with it."
2 comments:
as someone in the numbers racket i can tell you that it's more like dropping a bunch of lambs off in a wolf pen.
I've always felt that stocks were a scheme to separate people from their money-- give straight old compound interest anytime.
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