401k, like social security, is a pyramid scheme. it depends on constant, unceasing growth.
a small percentage of the population own a majority of the wealth. your 401k is influenced by the financial decisions of a small minority of people.
the financial markets are not free and efficient. they are manipulated by the likes of banks, hedge funds and even the federal reserve.
there's no safety in foreign markets or commodities. all assets are open for manipulation, speculation and crisis.
retirement. the whole reason for the existence of the 401k is itself a threat to the 401k. growth in the stock market correlates with the creation of the 401k in the early eighties. retirement of the boomers who are followed up by the less numerous and less wealthy gen x are going to drain the money invested into the markets right back out. whether the rate of extraction exceeds the rate of capital influx is to be seen, but that's a significant risk that's glossed over by 401k pushers.
401k is a panacea to most people. by using contrarian "logic", a la buying what no one else wants or housing is a bubble because your neighbor's dog just bought a house, 401k's should at least be criticized and carefully weighed.
401k's are tax deferred, not tax exempt. big difference and the rate of taxation in the future may change, your income in the future may make tax deferment moot.
401k's have grown because of the ease of investment. that passivity of people has allowed markets to grow unregulated, unchecked and unrestricted. financial services are one of the biggest industries in the country because more people are investing. and yet, people are not generally being active in their fund management, they are letting things ride and they are assuming the best. it's seems to me that that is exactly the most dangerous time to be involved with something.
