P.S. If you have a 401k or something like that, you are not an investor, you are a follower.
Foolish comment of the day. What investor doesn't have a 401k? One without a job would be my only guess... The investors I know all have 401k or 403b, IRA, Roth IRA, brokerage & money market accounts...
Most people have no idea what they are investing in with their 401k. A guy in suit at work handed them a form and they picked a few menu items. I'm not saying that a 401k has no merit as an investment vehicle, but if you don't know what specific companies your managers are investing your money in then don't fool yourself into thinking your Gordon Gecko.
compared to a pension, a 401k/roth ira is a scam. under ronald reagan nearly every worker had a pension. reagan and the wall street guys changed that. now less than 15% of workers have a pension and are stuck with someone else managing their entire livelihood... bring back the pension. but that will only happen with increased union membership and as long as republicans and center/right democrats are in office there wont be more pensions or unions there will be less stomped out 1 by 1. my grandparents wouldnt be alive without their pensions or would probably be eating dog food.
no sane person would pick a 401k over a pension without being completely ignorant. You can have money for the rest of your life at a set ammount that only you manage, or you cvan have money locked away that you cant ever control...
Ugh, pensions and unions. Blegh, ugh, blegh. Talk about an economy killer.
Anyway, let me get this straight. Relying on a 401k that you can spread across MANY different mutual funds, depending on their performance, thus encouraging the people who are managing your money to make sure it performs well, is worse than putting all your eggs in one basket via a pension? What happens if the company who is handing out the pension goes under? Then you have NOTHING.
Sorry for being "completely ignorant", but I would 10 times rather have a 401k than rely on ANY company to still be around to give me a pension 40 years from now.