I blow hot air.

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Joined 1 year ago
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Cake day: July 6th, 2023

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  • I agree, 401ks are stupid and were invented as more of a tax loophole for the wealthy than as an every-man’s retirement fund. But they’re cheaper for business so that’s what we’re stuck with.

    That’s not what I was talking about at all, though. I was just pointing out that if you have enough money to save for retirement, there are ways to relatively easily invest and grow your money while still mitigating risk and staying mostly hands-off.

    Fun fact about pensions. At their height, only about 45% of private-sector workers actually had a pension. Having one was undoubtedly better, on average, than having a 401k today. But they weren’t the utopian retirement solution that we (including myself) like to pretend they were. A majority of the population didn’t benefit from them at all, and the less-fortunate were essentially in the same or worse spot as they’re in today.


  • There are targeted retirement funds that target a retirement year and slowly transition from stocks into bonds/less risky positions as that date approaches. Those are generally a better idea for retirement savings than broader market funds for the reason you described.

    And it’s not like retirement immediately liquidates your 401k. There’s just some minimum that you need to take out per year which isn’t very high. Roth IRA’s don’t have a minimum distrust requirement until after the death of the owner.