My point is simply that when it comes to "being prepared", 401 is not the vehicle for that. "Savings", in terms of being prepared for emergency or hard times, is not about getting a good return. That's what investments are about: putting money at risk in exchange for expected reward. Saving for emergency is about sheltering money from risk so that it will definitely be available for emergency. I have plenty in 401k and I dont consider ANY of it savings.
I thought we were discussing the savings rate, not emergency preparedness.