Did you brother match the money you threw away for 20 years? Just wondering since I'm a Registered Rep/IA. I've never told anyone to not let their employer give them matching funds.
It takes a long time for legislation to make it through and if I saw 401k confiscation, we would PROBABLY be able to quit/rollover to IRA/or cash out as long as legislation isn't retroactive....and then there are the courts. You'd have a HUGE heads up.
You misunderstand. He said that they were great because of the matching funds. But once it doesn’t impact the matching funds, it’s best to get out of it.
If you worked for years for the same company and put all of your savings into this 401K, once you hit retirement age a lot of people are shocked to find out that they are required to take a certain percentage out or pay a hefty fee (20%, I believe). The tax hit can be substantial.
I too am a Series 7 among other things, and I tell my clients to take the company match and once that holding period has expired to roll out into other investment vehicles. Most plans are the cheapest the company can get and you are under no obligation to keep all of your money in that account once the match portion has been paid on the eligible funds.