Bring back pensions
02-23-2023 | 07:29 AM
#41
Line Holder
Joined: Apr 2022
Posts: 339
Likes: 45
From: DL320A
No pension.
I actually would expect something like this to happen soon.
Bring back DB, eliminate DC, company saves a ton of cash for a few years.
The old guys would rejoice, pension and all those years of DC “youre welcome kids!”
Then, once the costs got too high, sorry. We have to cut it to save the company again. Guess you guys are SOL.
I actually would expect something like this to happen soon.
Bring back DB, eliminate DC, company saves a ton of cash for a few years.
The old guys would rejoice, pension and all those years of DC “youre welcome kids!”
Then, once the costs got too high, sorry. We have to cut it to save the company again. Guess you guys are SOL.
02-23-2023 | 10:19 AM
#42
Line Holder
Joined: Sep 2005
Posts: 1,393
Likes: 128
I’m seeing a lot of hate on the pension. But here’s a consideration. Diversity of revenue streams in retirement. The DC is wholly tied to the market. If you have a down year in retirement, that can really impact your QOL and peace of mind in the golden years. Would be nice to have a revenue stream independent of market fluctuations.
Thoughts?
Thoughts?
IN THE MARKET
The diff though is that if an individual hasn’t diversified accordingly, a 22% market decline affects only themselves.
If every employee is in a pension and the market drops 22%, it puts the entire pension plan under duress which affects everyone.
A well diversified, properly allocated 401K plan is light years better than a pension due to the lack of systemic problems in a market down turn.
It’s as simple as putting your 401K in a target date fund and checking back in 30 years.
02-23-2023 | 01:20 PM
#43
Perennial Reserve
Joined: Jan 2018
Posts: 14,250
Likes: 257
Here’s the thing…..where do you think pension boards invest pension money?
IN THE MARKET
The diff though is that if an individual hasn’t diversified accordingly, a 22% market decline affects only themselves.
If every employee is in a pension and the market drops 22%, it puts the entire pension plan under duress which affects everyone.
A well diversified, properly allocated 401K plan is light years better than a pension due to the lack of systemic problems in a market down turn.
It’s as simple as putting your 401K in a target date fund and checking back in 30 years.
IN THE MARKET
The diff though is that if an individual hasn’t diversified accordingly, a 22% market decline affects only themselves.
If every employee is in a pension and the market drops 22%, it puts the entire pension plan under duress which affects everyone.
A well diversified, properly allocated 401K plan is light years better than a pension due to the lack of systemic problems in a market down turn.
It’s as simple as putting your 401K in a target date fund and checking back in 30 years.
02-23-2023 | 01:46 PM
#44
Banned
Joined: Apr 2017
Posts: 4,208
Likes: 7
There have been decades where international and small cap / value outperforms the S&P 500. So you really need a proper mix of everything if you want the most return for the lowest risk. Just being in the S&P 500 can be risky too in the fact that you wouldn't have made as much as you would if you were globally diversified among all asset classes. You won't lose money over the long term in the S&P 500, but it isn't always the best performer in and of itself.
Also, the closer your time horizon draws, the more you should be putting into bonds instead of stocks so that you are less subject to volatility when you are going to need to start drawing off of the portfolio.
02-23-2023 | 01:55 PM
#48
Can’t find crew pickup
Joined: Jun 2021
Posts: 3,059
Likes: 200
02-23-2023 | 02:03 PM
#49
Gets Weekends Off
Joined: Mar 2008
Posts: 4,106
Likes: 102
02-23-2023 | 02:21 PM
#50
Gets Weekends Off
Joined: Apr 2016
Posts: 4,008
Likes: 211
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