You may need to brush up on Economics and Basic Math to do the calculations for assessing the investment returns.
The first item to examine is the absolute return on the initial 401k investment (assuming maximum contribution is made)
You do need to know TAX RATES – which vary in line with income and deductions
What is important at present is to appreciate the significance of the IRS Concession available to each worker
Assuming a max funded contribution by a worker of $20.000 the tax rebate is around $5,000 or a little shy
The 33% return a worker can make instantly the day they make their Personal 401k Contribution is a guaranteed tax free return. It is not dependent on returns from underlying investments – it is before funds are even allocated to specific investments.
At this juncture the merits of a 401k investment should be obvious. What is no so obvious is a ,management strategy for managing the cash flows. However until the prudence of investing a 401k plan is acknowledged there is little point sprinkling pigs with pearls,