2 ms·
A 401k is an account, funded by a mix of employer and employee contributions, that's beyond reach of bankruptcy. That part is the same. The only bit that's dif
by eldavido 7y ago
A 401k is an account, funded by a mix of employer and employee contributions, that's beyond reach of bankruptcy. That part is the same.
The only bit that's different is the self-management of assets, of which many companies are happy to do, increasingly for lower and lower fees. 0.2-0.3% being common which I bet goes toe-to-toe with good pension managers.
They really aren't that different.
- alistairSH 7y agoYou're neglecting the part where a defined benefit plan pays a fixed amount until you die (assuming it remains solvent, which is a problem because corporate raiders are allowed to cash them out under some circumstances). A 401k can run out - they often do.