Originally Posted by
tsquare
And I remember exactly what happened in 2008. It was folly to believe that a DB plan removed retirement dollars from uncertainty of the market, bankruptcy proves that beyond any shadow of a doubt. And the two are very clearly interrelated. The Western guys were right. Retirement in our own name was essential, and we didn't listen.
I have done a little cocktail napkin math on a newbies retirement, although it is very very rough, and with the expected movement they are gonna see Timbo, you and I are gonna be pool boys for them.
Gotta agree with you here, T. In terms of risk, I think we've seen first hand that a DB plan represents a greater risk than a market based plan.
Our current setup with the Fidelity BrokerageLink and the 15% company contribution is excellent. It is allowing me to create a retirement account that will provide an income greater than what I would have had with the DB plan. And that's with me having to start basically from scratch in my mid 40's! Imagine how powerful this is to those who are hired in their 30's or even in their 20's! If today's new hires are smart about the way they invest (i.e. don't take too much risk), they are going to be multi-millionaires by the time they retire.