General Discussion

zipplewrath

(16,698 posts)

5. I shook my head

Thu Aug 8, 2013, 02:50 PM

Aug 2013

Back in the '90s I couldn't believe how easily folks gave up defined benefit retirement plans for 401K's. It was absurd to think that most of them would ever save enough to compare to a defined benefit plan. It's not that it can't be done, it is that most people won't succeed. They'll invest poorly. They'll save too little, too late. They'll dump more in their house than their 401K.

We're talking about people who pay people to clean their pools and change their oil. We're talking about the folks that "rent to own". And these people were suppose to develop strong investment portfolios for their retirement? Absurd.

I've got my defined benefit retirement plan, and I'm keeping it. I just wish I could find a way to insure it.

Edit history

Please sign in to view edit histories.

Recommendations

0 members have recommended this reply (displayed in chronological order):

62 replies

= new reply since forum marked as read

Highlight:

401(K)s Are A Sham - Salon [View all] WillyT Aug 2013 OP

A Million bucks and 30 years of retirement Bennyboy Aug 2013 #1

At age 66, a million bucks will buy a $70K annuity Major Nikon Aug 2013 #14

How about one $130,000 hospital bill that's not quite covered by insurance? jtuck004 Aug 2013 #23

One of my friends is a tax accountant and he says that annuities are a very, very bad investment. avaistheone1 Aug 2013 #28

Having lived mostly in this country for most of 60 years, about the jtuck004 Aug 2013 #33

I wouldn't say that Major Nikon Aug 2013 #35

Many are very fee heavy maui902 Aug 2013 #54

That's what Medicare supplemental catastrophic plans are for Major Nikon Aug 2013 #34

The government insures the return? If the underlying assets go to crap? jtuck004 Aug 2013 #38

Every state has a guarantee association (SGA) which insures qualified annuities Major Nikon Aug 2013 #40

So if the company fails, there is no federal guarantee, but I could depend on the State of Texas? jtuck004 Aug 2013 #41

No state SGA would ever be allowed to fail Major Nikon Aug 2013 #42

Sounds like a sales pitch. Good luck. n/t jtuck004 Aug 2013 #43

Except for this part... Major Nikon Aug 2013 #44

AIG. Remember them? Texas company, thousands of annuities and life insurnace holders screwed jtuck004 Aug 2013 #46

Not even one policy holder was screwed and none were ever at risk at any time Major Nikon Aug 2013 #49

The fucking insurance commissioner was about to place them in receivership, unless you want to jtuck004 Aug 2013 #50

I have done quite well with my 401k. But I still have a Defined Benefit Pension for most of my doc03 Aug 2013 #2

me too... spanone Aug 2013 #3

My 401k (now IRA) would give me about 60% of my DB pension doc03 Aug 2013 #8

My parents have 401Ks and have also done very well. Incitatus Aug 2013 #56

The New Low Wage Part Time Economy By The GOP Won't Fund LIfe Let Alone A 401K TheMastersNemesis Aug 2013 #4

I shook my head zipplewrath Aug 2013 #5

If you have a Defined Benifit Pension Plan it is insured doc03 Aug 2013 #6

For 40 cents on the dollar zipplewrath Aug 2013 #7

You must have one hellofa pension the maximum benifit is like doc03 Aug 2013 #10

Health care zipplewrath Aug 2013 #12

Umm, we didn't "give it up easily" MindPilot Aug 2013 #17

Yeah, it was a broad brush zipplewrath Aug 2013 #19

Combined with stagnated wages, rising expenses and an anemic stock market failure is assured. geckosfeet Aug 2013 #9

401(k): peace of mind for people who don't understand math Recursion Aug 2013 #11

All at once? zipplewrath Aug 2013 #13

One way or another, we have to transfer $2.5 trillion from workers to retirees over the next 20 yrs Recursion Aug 2013 #15

Where do you think pension funds put their money? philosslayer Aug 2013 #36

They're almost as bad. SS is the only sensible way to do it Recursion Aug 2013 #39

Just a shell game to fund the wallstreet gamblers with money so they could play with it SoCalDem Aug 2013 #16

Mine are doing nicely, thank you brooklynite Aug 2013 #18

uh....what choice? jeff47 Aug 2013 #27

401K works for me thetonka Aug 2013 #20

"trust our government to provide for you"?! MindPilot Aug 2013 #21

I've been paying into SS since 1969 KansDem Aug 2013 #31

I interpreted thetonka's post as a piece of advice maui902 Aug 2013 #55

Exactly thetonka Aug 2013 #61

There's a reason this is finally being reported openly. mn9driver Aug 2013 #22

Stumbled upon tax liens recently, as an investment tool. toby jo Aug 2013 #24

K&R abelenkpe Aug 2013 #25

In the days of Retirement with 50yrs seniority, that is true One_Life_To_Give Aug 2013 #26

Kicking for later! arcane1 Aug 2013 #29

Yes, let's give all our money to Wall Street for safekeeping. tinrobot Aug 2013 #30

Thanks for posting! This is another reason I hate Snowden SleeplessinSoCal Aug 2013 #32

Trickle down economics destroyed American pensions. Rex Aug 2013 #37

For some strange reason, onethatcares Aug 2013 #45

They get ya coming in and going out. Rex Aug 2013 #47

Me too. Enthusiast Aug 2013 #59

That's why I prefer the ROTH Fla_Democrat Aug 2013 #48

I was saying that over 30 years ago they were junk duffyduff Aug 2013 #51

A pension that lasts as long as a person lives is FAR, FAR better duffyduff Aug 2013 #52

kr HiPointDem Aug 2013 #53

The article is full of inaccuracies.... Swede Atlanta Aug 2013 #57

Here's how they all suck. jeff47 Aug 2013 #58

There are several problems with 401ks. DCBob Aug 2013 #60

K&R cprise Aug 2013 #62