• Buelldozer@lemmy.world
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    1 year ago

    401ks are a time bomb waiting to go off. If / when there’s another severe stock market crash (and make no mistake one is coming) tens of millions of retirees are suddenly going to be penniless.

    • elscallr@lemmy.world
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      1 year ago

      If a crash of that magnitude happens it’s not like social security would fare any better. At that point you’re talking about full scale economic disaster that affects the entire world.

      • Buelldozer@lemmy.world
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        1 year ago

        If a crash of that magnitude happens

        It doesn’t require a full scale Great Depression style meltdown, the ‘downturn’ of 2008 caused significant difficult for many, it simply requires a sharp enough retraction of Investment Capital. That retraction is already in progress as the retirement rate for Boomers escalates and more of them begin selling their stocks and bonds; either directly or through their retirement instruments like 401ks and Pensions.

        I’m not a doomer but I am fairly convinced that 401ks are a timebomb.

        • elscallr@lemmy.world
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          1 year ago

          401Ks are just investment accounts. They have exactly as much risk as you expose yourself to. Balance your portfolio, use index funds intelligently, don’t put all your eggs in one basket, and you’ll be fine.