Posted on 04/09/2021 4:20:42 PM PDT by SamAdams76
A big controversy today is over defined benefit (DB) pension plans and defined contribution (DC) 401(k) type plans with regard to retirments.
The DB plan used to be a good one. Employees would work for a company for 30 years or so and then be guaranteed about 70-80% of their earnings for the rest of their lives due to their companies funding these kind of retirement plans. Social Security would easily cover the rest.
However, the DC plans have taken precedence since about 1981. This is basically an elective retirement plan that requires the employees to contribute a certain amount each paycheck towards their future retirement. In some occasions, the employer may contribute a "matching" contribution. For instance, an employer may contribute 50% up to a 6% employee contribution. So an employee contributing 6% of their pay to the 401(k) will also receive an additional 3% from the company they work for for a total contribution of 9% of their base pay.
However, those only contributing 4% of their salary to the 401(k) will only receive a 2% match from their company, resulting in a 6% contribution overall. In this scenario, the employee is giving up a significant amount of matching funds over the course of their career.
They are eventually giving up "free" money.
We are going to have a retirement crisis in which many people did not sock away enough money in their 401(k)s to fund a comfortable requirement. Social Security is only intended to fund maybe 40% of your retirement needs at best. You need to make up the rest with your personal savings towards retirement. And many are falling short.
It was once said that $1,000,000 in your 401(k) would be enough to retire. But given the 4% rule, you would only want to take out 4% a year from your nest egg. In the case of $1,000,000, you would only have $40,000 a year to live on in addition to your Social Security and whatever you can make in side jobs.
That may or may not be enough depending on your lifestyle. And many will retire with less than $1,000,000 in their 401(k) plans.
I think this thread had need of a bunny with a pancake on its head.
IB4TZ
I have yet to find a woman who can work the ratchet tie-down straps. I’m sure there are some but I have not met them yet.
I’m confused, the heading doesn’t match the text.
I believe you have the wrong title.
I know. This irritates me to some extent.
Yeah but we can change the toilet paper roll.
Bookmark I shall
Ah, but you are the author so what gives?
Title doesn’t match the text and how does the airliner pertain to either the title or text? Sum Ting Wong.
Generally speaking, women do not know how to do most of what they’re trying to do in their competition with men. They are generally like fish out of water. Women were made to take care of their children, husbands, and home. That is where they are happiest because that’s how Gods made them.
The Women’s Movement has taken women so far off the track that don’t know where they are or who they are. And it shows. Big time.
What does this article have to do with ratchets?
I sure don’t. Don’t even know what they are. Good thing I don’t use a truck these days.
You are thinking deeply, which was the purpose of this post.
The Bunny with the pancake hat would be great. Can you post it?
I’m not sure your age, where you live, or your experience, but I think you are way off base. Cringeworthy comment by you.
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