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The main reason 401k wouldn't work is if people ignore and neglect it until they're 60 years old. Sadly a lot of Americans do this. This could be solved by mak
by missedthecue 2y ago
The main reason 401k wouldn't work is if people ignore and neglect it until they're 60 years old. Sadly a lot of Americans do this.
This could be solved by making contributions mandatory like Australia and Singapore. As long as you're putting money in, the rest is just math + time.
- deleted 2y ago[deleted]
- unyttigfjelltol 2y agoOr a custodian steals the money. Or the beneficiary selects poor investments. Or their employer doesn't do a generous match. Or the retiree switched jobs a few times and never fully "vested" in employer contributions. Or the market doesn't make the "math + time" formula work quite right. Or they couldn't contribute at various times due to family or health emergencies. Or all of these things.
- missedthecue 2y agoMost of these points apply to pensions too. Getting laid off two weeks before your pension vests is an all too common story. Companies go bankrupt and the judge rules the opposite of what he did here. Pension plans themselves can go bankrupt, and although they're insured, it's only up to a certain limit. And most of your 401k is going to be the money you put in, not the match anyway. So it sucks when you aren't able to vest or your employer doesn't match well, but that doesn't kill the concept. The formula is proven to work in other countries. My point is you can't refuse to use a defined contribution scheme and then complain it didn't work.
- jellicle 2y ago"my retirement is safe and secure, I've invested with Crypto401K"