Video Resource: Would You Take His Advice on 401(k)s?
This would fall into my category of very, very, very dangerous advice. So, why show it to students, then? Our students need to be savvy, discerning media consumers which means they need to be able to discern the treasured nuggets from the garbage advice out there.
As students watch this video, have them keep a list of the reasons that this speaker believes 401(k) plans are a bad idea. Then have them research each of these main points and build evidence to agree or disagree with him on each points. This Motley Fool column provides a point by point refutation of his main points.
If nothing else, this activity will teach students that the financial services world is full of so-called experts, many of whom spout advice that is questionable at best.
About the Author
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.