I recently started a new job and was planning to move roughly $40K from my previous pension account to my new 401K.
However, a financial advisor at the company told me that the only benefit of having money in a 401K is the initial contribution, which my company will match. He said, “You’re wasting your other money by dumping it into a 401K.”
Is this true? By all accounts, it appears that the more money you have in your account, the more interest it will accrue.
Any insights or advice would be greatly appreciated. Thanks!
It’s difficult to determine his intent without additional context. He might be suggesting that your 401k investment options are limited and that you could achieve better returns with an IRA, where you have more flexibility in choosing your investments.