Buying a stock,I have the advantage of picking (A) company “I” think will do well.What we’re doing now,with 401K and IRAs is taking money and throwing it across the board,investing in many companies.Most don’t even know the companies they are invested in.That might “prop” up a bad company with money gathered from individuals and invested in it,if it is included in a particular “fund” account.
Well, just because it’s in a fund and you don’t know at that exact moment what particular stock the money is in doesn’t mean that ssomeone working for the fund didn’t do any different than you would do with an E-Trade account or the like. It’s the same process, it’s just a managed fund with the money spread out over several stocks.
Any investment, whether you choose it or it’s chosen on your behalf, that invests in a company will prop up that company value.
I still don’t get your point. How are 401k’s a scam?