Wednesday, March 28, 2012
Retirement - Is it in YOUR future?
Companies stopped offering pensions in the form of defined benefit plans once they were able to offer defined contribution plans, also known as 401K plans. The change not only saved companies a lot of money, it let them off the hook for the responsibility of managing your pension dollars to ensure your income in retirement. The problem was that 401k plans didn't, and still don't offer any guarantees of any kind to insure the safety and growth of your savings. The assets are almost always 100% invested directly in the stock market and have no form of protection from volatility. Add to that the lack of investment knowledge and training most employees participating in the 401k plan have and it's a small wonder that so many retirees and pre-retirees are bewildered at what happened to their retirement savings.