401k Analysis

First and foremost, I would just like to comment that this video is rather outdated. I think now the situation has worsened because the debt has increased immensely since 2013 and more people (mostly illegal immigrants and/or the unemployed) are given access to welfare benefits. The video mentions how the introduction of the 401k plan initially seemed like a reliable way to prepare for retirement but then the reality of it became apparent. As stated in the video, "The 401k is one of the only products that Americans buy that they don't know the price of . . . it's one of the products that Americans buy that they don't know its danger." I agree with this statement because of how confusing it is to understand the 401k plan. Also, from personal experience, the number that appears in one's 401k plan is never truly the amount one has. There are several …show more content…
This is later discussed in the video as Robert Hilltop discovers hidden fees in his 401k plan and questions their purpose. Furthermore, CEO of The Vanguard Group (1974-1996), John Bogle, shows that mathematically if someone puts in 100% of the capital, they end up only getting 30% returned as a result of a 2% fee. Honestly, this is frightening because it is essentially robbery played out by large companies. I think this video does a sufficient job of warning individuals about retirement plans but overall the video is rather pessimistic (although I can't argue that there is something positive about losing money). It is devastating to hear even the Assistant Secretary of Labor state that, "We have a system today where anybody can hold themselves out as an expert. They call themselves retirement planners, financial planners, advisors, et cetera. We don't have a standard way that the consumer can figure out who has the expertise to provide advice" because it only exemplifies how we can only truly trust ourselves, especially with regards to money or