The 401(k) System: Great for Wall Street, Bad for Retirees

[FreeJoe]

17. Yes, I do

My company uses Fidelity as a 401K provider. The funds that I have in my 401K have fees very close (slightly better than) the funds I have in my IRAs and my regular brokerage accounts. They are surprisingly low (less than 0.1% per year).

I'm very happy with our 401K. My company matches my contributions up to 6%. They match in whatever fund I choose, not company stock. My 401Ks have had their ups and downs, but they will be the bulk of my retirement.

I also have a pension plan, but I prefer the 401K for several reasons. First, our company discloses what it puts into its retirement plan. On the whole, I've done better with my investments than it has with its. Second, I think my 401K is safer than the typical pension plan because I won't lose a big chunk of it if my company goes bankrupt. Finally, it is more portable. The wealth that I have accumulated has come from the 401Ks at the various companies at which I have worked. The pensions that I earned at those companies are worth very little because I didn't stick around forever.