Re:99-year old trucking company Yellow shuts down, putting 3...
by azinman2 on Monday July 31, 2023 @03:18PM
(#36947480)
401k and IRA were created in a system that included pensions. Now without them, we have a huge shift towards a volatile market with a lot less guarantees, and lower limits. This isn’t a good system we have. Most are ill prepared.
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Re:99-year old trucking company Yellow shuts down, putting 3...
by nradov on Monday July 31, 2023 @06:59PM
(#36950021)
The guarantees provided by the PBGC are very limited and create a terrible moral hazard. Defined contribution plans such as 401(k) are much safer because the assets are in individual named accounts which aren't at risk if the employer or plan sponsor goes bankrupt. Most such plans allow employees to invest in risk-free assets such as Treasuries if they desire.