How Safe Is A 401(k)?

How Safe Is A 401(k)?

401(k)’s have been promoted as one the best savings vehicles for retirement planning but how safe is a 401(k)? They are relatively safe as long as three things continue to stay intact:

More people are paying in than withdrawing The underlying stock holds its’ perceived value The Government keeps their hands out of it

This may be pure speculation on my part, but there seems to be good reasons to be concerned about all three of these factors and why they may not stay this way much longer.

1.) When the 401(k) was enacted after the signing of ERISA people who never owned stock were suddenly making weekly investments in the stock market. Read more