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Old 06-21-2009, 02:41 PM
Like2Plan Like2Plan is offline
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Quote:
Originally Posted by jIM_Ohio View Post
What's wrong with the 401(k) and how it can be fixed - Jun. 16, 2009

Is the 401k and other self directed retirement plans a success or failure? In your opinion/ your world?

Thoughts?
I don't think it is a failure, but I think it is a poor substitute for a defined benefit. The company line/propaganda is the 401K puts you in the drivers seat--blah blah blah.

IMHO, it is just another cost that has been shifted to the employee and the further shrinking of the paycheck. Additionally, the individual takes on all the risk with the investment choices. In order for it to be a reasonable alternative, I think the company match would have to be at least 12-15% of income. There are not too many companies that provide that level of funding.
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