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And everyone else has 401ks which also suffer in a crisis, but the federal government can't bail out red state 401ks without also helping blue state 401ks, so i
by klipt 7y ago
And everyone else has 401ks which also suffer in a crisis, but the federal government can't bail out red state 401ks without also helping blue state 401ks, so in that sense 401ks are safer than pensions.
- ForHackernews 7y agoI don't even know what it would mean to "bail out" a 401(k). By definition you, the employee, are exposed to all the market risk. If you happen to reach retirement age in a down market, you're kinda just screwed. Should've made better investment choices 15 years ago. This is why traditional pensions were usually a better deal for most employees.
- klipt 7y ago> I don't even know what it would mean to "bail out" a 401(k). By definition you, the employee, are exposed to all the market risk. Exactly it means juicing the stock market, which the fed can do by lowering interest rates etc. > If you happen to reach retirement age in a down market, you're kinda just screwed. That's why you're supposed to allocate more of your money to bonds as you approach retirement.