401K Plans
Posted: Mon Oct 06, 2003 5:02 am
Worth the read ...
http://cbs.marketwatch.com/news/story.a ... iteid=mktw
... And if SS goes we'll be balancing on a 1 legged stool !!
http://cbs.marketwatch.com/news/story.a ... iteid=mktw
The problem, Arnone said, is that defined-contribution plans were never intended to be workers' main income stream in retirement. Instead, the intent was that they would act "as a supplement to pensions and social security," he said. "It's the accidental revolution in retirement planning. A few people discovered it, said this is a neat way to save taxes. It has taken off and become the primary plan."
Retirement planning was originally based on a three-legged stool of social security, a traditional company pension plan and an employee's own savings and investments, including a 401(k), Arnone said. Two of those three legs were defined-benefit plans, ensuring retirees a set income stream each month.
... And if SS goes we'll be balancing on a 1 legged stool !!