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Most 401ks will just default to a target date fund, which is usually a total market stock ETF + bonds. That will certainly perform better than most actively man
by pizzalife 2y ago
Most 401ks will just default to a target date fund, which is usually a total market stock ETF + bonds. That will certainly perform better than most actively managed pension funds.
- paulryanrogers 2y agoBut worse than the defined benefit pensions that 401k's were leveraged to replace.
- throwaheyy 2y agoDefined benefit pensions are unsustainable Ponzi schemes though. Attempting to guarantee market returns is silly.
- paulryanrogers 2y agoYeah, I wish we'd at least have tried scaling the benefits based on company's ability to pay. Or if they were guaranteed yet more realistic. Ultimately maybe only something market-based is realistic. Yet if we must do that then I'd prefer gov workers be forced to use the same system. Also 401Ks being born out of a carve out for executives feels like an awkward fit for regular employees. Perhaps a unified system not tied to employment could be the best of both worlds.