Originally Posted by
TED74
MBCBPs may not be off interest to you, and that’s fine. They are extremely popular with other high-earners like doctors, lawyers, small business owners, etc., or folks who have interest in deferring more income taxes than they might without such plans. Optionality is the key that everyone, including DALPA, has acknowledged is essential.
My concern is WHO is holding the money.
WHAT becomes of it if I pass away before withdrawing it.
And what happens if whoever is holding it, goes bankrupt. Like the brokerage, or Delta goes bankrupt again. While my money is in a brokerage, I do own shares that actually correspond to actual companies shares that I will retain if Fidelity goes POOF.
Why do I feel this is a "defined max amount" pension under a different name.
I don't trust that Delta will
1-Invest it wisely (Hello LATAM, AeroMexico, and whatever the next "partner" to go bankrupt is)
2-Not pull some shenanigans like the bank that holds it and them, filing for bankruptcy on the same day in the same court.