Actuarial news and views from Cape Town and beyond

“Why its time to retire the 401K”

Leave a comment

The following article is taken from time magazine’s coverage on the 401(K), the American equivalent of a defined contribution fund.

It was published just after the financial market crisis (2009) and highlights the risks experienced by members of defined contribution funds as opposed to defined benefit funds. There are also some calculations which seem to be correct. Moreover some allusions are made to solutions involving insurance.

It is a bit of a lengthy article but nonetheless interesting. Even the author of the “Rich Dad Series”, Robert T. Kiyosaki who frequently censures 401(k) plans referred to this article:


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s