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Can someone explain what is so bad about 401ks?

WineHorror1 says

Can someone explain what is so bad about 401ks?

It doesn’t result in a check cut from the Federal Government.

WineHorror1 says

Can someone explain what is so bad about 401ks?

Never had any problems with mine however some that I have been asked to review for friends had/have poor investment options and maintenance fees.

Kakistocracy says

Never had any problems with mine however some that I have been asked to review for friends had/have poor investment options and maintenance fees.

Then why are you posting a cartoon portraying the 401K as being screwed?

WineHorror1 says

Can someone explain what is so bad about 401ks?

The annual contribution limits are low.

Nothing. It’s not guaranteed and only as good as what you put away.

Government pension system are welfare, guarantees way beyond what was earned. Taxpayers foot the bill.

WineHorror1 says

Can someone explain what is so bad about 401ks?

WineHorror1 says

Can someone explain what is so bad about 401ks?

They are self-funded in the first place. Defined benefit pensions were administered by people who were expert in investments and spent every day making sure the money was invested wisely. Turning over such critical things as your future financial security to people who had no expertise in such matters was a time bomb waiting to go off. Also, when these things first came out, you were given a measly four or five selections to choose from, none of which meant anything to anybody. Then that was followed up by "now you're on your own and it's your responsibility to make good choices". An analogy would be "now you're going to have to do the root canal yourself after reading the directions" for an hour or two. A defined benefit pension gives you a guaranteed amount for the rest of your life without have to risk your own money. Coming out in 1978, I think they were a response to the ruinous decade of double digit inflation during which securities lost 40% of their value between the late 60's and early 1980's when inflation finally abated after Volcker's double digit interest rates.

Pension system originally ran out of money in the 70s and 80s. Simply overpromised and underachieved.

All those corporations that had unions, all came from MIC. They were used to postwar market where they could charge any price and pass on any cost, since global competition was none. But by late 70s world caught on, and American businesses could no longer compete having high labor costs and clueless management that didn’t see it coming.

There are still government pensions, and government is bleeding money on those. That won’t go away though, politicians are benefiting from same system, so it’ll drain society forever.