One thing I consistently notice in the workplace is the acceptance at which the general populace accepts the merits of the 401k as gospel. Invest and save for the long term they say, and do it in the 401k. Why not? You’re crazy if you don’t use the 401k you know?

For readers of this website, you probably know where I’m going with this narrative. The 401k is not all that it’s cracked up to be. First, there are the fees. Wall Street takes a percentage of all the automatic, bi monthly distributions that come into the market via 401ks. It’s guaranteed demand for them and they skim off the top, eating away at your long term returns.

Next, there is market volatility. How did everyone’s retirement plan do back in 2008? People got crushed because their 401ks provide poor investment options. They funnel you into all the same stocks everyone else is in and when the general market goes down, you go down along with it.

What is an alternative for the 401k? Saving via whole life insurance may sound unusual, but it’s actually a much more effective alternative to the 401k when it comes to building a nest egg. You can research more in the premium section of the website under “True Hedge”, but as a preview this savings vehicle provides guaranteed growth, hasn’t gone down in value ever, even during financial crises, and lastly gives its adherents a financing vehicle for everything in their lives.

Don’t trust the 401k. Look for alternatives outside of the mainstream to safely grow your wealth.