Quote of the Day – Retirement Edition
“What starts with f, ends with k, and means screw your workers? That’s right—401(k).” – James Ridgeway
A great line, even though I disagree with his premise.
He’s arguing that the rise of privatized retirement was the doom of the relatively short-lived social contract that arose in the postwar years in which employers and the government ensured that people would be able to retire in relative confidence.
The problem with that is: 1) it never really existed for most people; 2) company pension plans can go under, too; and 3) investing in the market remains a good long-term strategy. If you’re within 10 years of retirement and still had all of your money in stocks, on the other hand, you’ve ignored best advice of most financial planners; you’re supposed to diversify more of your money into bonds and other low-risk securities as you near retirement.