So your 401K is a mess. Join the club; it sucks.
Imagine how much worse it’d be if, instead of a messed-up 401K, you were dealing with not being able to get water that wouldn’t give you or your kids cholera.
A friend of mine has been involved in starting a charity to help people in Ethiopia and Malawi to drill water wells. Clean water isn’t only essential for mixing a great cocktail – it’s essential for the rest of your life, as well.
So by all means, pitch in if you can.
You think your 401(k) is bad? Look at it realistically.
Social security for a two income couple pulling in around $80K/year average lifetime income has a rate of return of approximately 1%; the rate of return for singles is about the same, while a married couple with a single wage earner can actually double that figure.
Even the worst money market fund in a 401(k) does better than Social Security.
But wait, it get better.
Does your company have a 401(k) match? Do you put in enough to get the match? That’s an instant 100% return on your investment. The stock market hasn’t gone down 50% from its highs, so you’re still farther ahead in your 401(k) than you are on Social Security.
Of course, all this works until Al Franken and his Democrat allies start taxing your 401(k) both going in AND going out.
BTW, Mitch, busted link to that charity.
Mitch,
There is another Twin Cities based charity doing similar work in Haiti. Perhaps your friend could get some advice & guidance from them.
http://www.haitioutreach.org/
Clean drinking water is probably the most important global issue today, God bless your friend.