Originally Posted by
CX500T
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.
It's required to be third party managed and held. ALPA doesn't get it and doesn't want the liability and once the company funds it they are out of the picture. It's no less secure than your current 401k held by fidelity.