This depends greatly on circumstances. In many cases a 401k will be worth significantly more than the equivalent pension (in my father’s case, his pension buyout was worth double ten years later), and there’s no risk of bankruptcy rendering your 401k insolvent. Likewise, many jobs which would have never come with a pension have 401k matching these days.
The downside is obviously that it rides the stock market, but you can make the argument that this actually makes the collective global economy our pension. It’s gives more people a stake in that stability and growth, for better or worse.
In many cases betting at a casino has a higher ROI than any actual investment. Still doesn’t mean it’s a good idea to bet your life savings at a casino.
Betting on the S&P 500 is way less risky than betting at a casino, especially in the long-term. You are betting on the growth of the global economy, not betting on whether the casino wants to give you money.
If you want to criticize fund managers or lack of regulations for pushing people towards risky picks like individual stocks, then fine. That doesn’t mean that 401(k)s and 403(b)s are bad tools.
Either way, the “casino” argument falls flat because an informed person can control the risk they undergo.
This depends greatly on circumstances. In many cases a 401k will be worth significantly more than the equivalent pension (in my father’s case, his pension buyout was worth double ten years later), and there’s no risk of bankruptcy rendering your 401k insolvent. Likewise, many jobs which would have never come with a pension have 401k matching these days.
The downside is obviously that it rides the stock market, but you can make the argument that this actually makes the collective global economy our pension. It’s gives more people a stake in that stability and growth, for better or worse.
In many cases betting at a casino has a higher ROI than any actual investment. Still doesn’t mean it’s a good idea to bet your life savings at a casino.
Betting on the S&P 500 is way less risky than betting at a casino, especially in the long-term. You are betting on the growth of the global economy, not betting on whether the casino wants to give you money.
Good thing people only put their money in the S&P 500.
If you want to criticize fund managers or lack of regulations for pushing people towards risky picks like individual stocks, then fine. That doesn’t mean that 401(k)s and 403(b)s are bad tools.
Either way, the “casino” argument falls flat because an informed person can control the risk they undergo.