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Comment by DontchaKnowit | Hacker News Reader

My 401k account offered by fidelity, using the highest risk investment strategy available to me, returned about 8 percent during a period where the S&P did about 30%. and they took a 1.5% commission. Absolute fucking scam. took all my money out and ended contributions.

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You werent allowed to invest in the s&p 500 or any other low cost index fund?

If I was, they did not make that clear at all. They had a set of about 14 different "packages" that were aggregations of different etfs and such that were available to invest in and that's it. I couldn't find any way to invest in a single stock or etf.

They also told me I couldn't cash out my money until I left the company I worked for which I am pretty sure is untrue.

You usually can’t cash out while still employed with the company sponsoring the 401k plan. Conversely, you can usually only take a loan withdrawal if you’re still employed with said company.

Definitely 401ks are obscure and confusing and full of deception. I think John Oliver did a segment on them. Your experience is not atypical.

My 401k plan has an S&P 500 fund run by Fidelity that costs 0.015% a year in fees, FXAIX. If I didn’t have access to a fund like this, I would demand to be given access to it.

You can always do a S&P 500 fund in a 401k

Isn't having an S&P 500 fund legally required?

Not always. Many 401k's only allow participants to select a handful of funds, all of which are managed, and none of which are pure index

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