Author Topic: Don't invest in a 401(k) - Joke?  (Read 3351 times)

EricL

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Don't invest in a 401(k) - Joke?
« on: April 26, 2015, 05:20:13 PM »
I think this guy posted this as a joke.  With that hair I hope so.

http://www.businessinsider.com.au/james-altucher-401k-strategy-investing-money-2015-4

But if not the Motley Fool jumped on him with a rebuttal:

http://m.fool.com/investing/general/2015/04/22/terrible-advice-i-hope-young-people-ignore?source=izmmblmta0000001&lidx=1

Edit: I should have summarized a few of his points for easier consumption. The worst of his advice is to keep your money in bank savings accounts. Like he doesn't know bank interest hasn't beat inflation in decades.
« Last Edit: April 27, 2015, 01:54:56 PM by EricL »

Financial.Velociraptor

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Re: Don't invest in a 401(k) - Joke?
« Reply #1 on: April 26, 2015, 05:39:32 PM »
I just finished reading the James Altucher "Choose Yourself" series.  He is quite serious about generally being against the idea of retail investors getting in the market.  He has horror stories from the days he was a hedge fund manager and later managed a "fund of funds."  His theme is to invest in yourself and develop so many streams of income you don't need a stache. 

He is in many ways the anti-mustachian and suggests it is impossible to increase your income without having your spending rise to match.  Interesting fellow.  Very entertaining writer.  Very provocative (he also recommends young people skip University.)  I enjoyed his stuff without agreeing with all of it.  YMMV.

Zamboni

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Re: Don't invest in a 401(k) - Joke?
« Reply #2 on: April 26, 2015, 05:50:37 PM »
Wow, yeah, that video is something else.  I'm sure people will latch onto it though, and use it as part of their reasoning for not saving for their retirement.

TheGrimSqueaker

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Re: Don't invest in a 401(k) - Joke?
« Reply #3 on: April 27, 2015, 12:24:26 AM »
I just finished reading the James Altucher "Choose Yourself" series.  He is quite serious about generally being against the idea of retail investors getting in the market.  He has horror stories from the days he was a hedge fund manager and later managed a "fund of funds."  His theme is to invest in yourself and develop so many streams of income you don't need a stache. 

He is in many ways the anti-mustachian and suggests it is impossible to increase your income without having your spending rise to match.  Interesting fellow.  Very entertaining writer.  Very provocative (he also recommends young people skip University.)  I enjoyed his stuff without agreeing with all of it.  YMMV.

Hmm, Amazon lists this guy as a "motivational" speaker and writer, not a finance writer. For a guy who's against education, he sure soaked up a lot of it and benefited from it.  I get a kind of Kiyosaki-like vibe from the bits of his writing I've encountered. So I'm sure it will sell really well regardless of whether it's accurate.

Financial.Velociraptor

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Re: Don't invest in a 401(k) - Joke?
« Reply #4 on: April 28, 2015, 12:30:17 PM »

Hmm, Amazon lists this guy as a "motivational" speaker and writer, not a finance writer. For a guy who's against education, he sure soaked up a lot of it and benefited from it.  I get a kind of Kiyosaki-like vibe from the bits of his writing I've encountered. So I'm sure it will sell really well regardless of whether it's accurate.

His current blog talks about how he "used to write about boring finance stuff."  He has run hedge funds and was the founder of stockpickr.com.  He is a venture capital investor.  He can speak finance but prefers not to because he feels strongly the deck is stacked against retail investors.  I (mostly) disagree.  Find his writing entertaining regardless.

zephyr911

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Re: Don't invest in a 401(k) - Joke?
« Reply #5 on: April 28, 2015, 12:44:31 PM »
His current blog talks about how he "used to write about boring finance stuff."  He has run hedge funds and was the founder of stockpickr.com.  He is a venture capital investor.  He can speak finance but prefers not to because he feels strongly the deck is stacked against retail investors.  I (mostly) disagree.  Find his writing entertaining regardless.
Mostly disagree is a highly defensible stance. Yes, the world of personal finance is fraught with peril and hucksters, and the large institutions do have tools and information we don't. But, NO, there is no massive structural bias against the little guy - mostly just a lot of advertising trying to suck him into bad choices. And we have advantages they don't - massive flexibility for one, because we are our own shareholders (corporations of one, or five, as the case may be) and can enact radical strategic change in our lives at the drop of a hat. Good luck telling the board of a corporation that it's going to live on a small fraction of its revenue for the sake of decades-off returns.

This forum is full of living proof that you can self-educate and succeed at investing.

As I'm fond of saying WRT many of these claims... keep on saying it can't be done, and we'll be out there doing it.