Take a look at this link. It is a fantastic article about 401(k) plans - their origin, pitfalls, and things to consider.
http://www.time.com/time/business/article/0,8599,1929119-5,00.html?artId=1929119?contType=article?chn=bizTech
But you're probably thinking...well, if the 401(k) isn't that good (and a similar argument could be made for traditional IRAs), and most companies don't offer pensions, what's left?
So how do you save for retirement, get growth (ideally), avoid down markets, and create income that you can't outlive?
Sounds impossible? Actually not.
Don't think of different 'investment' types. Think transfer of risk. Risk of living a really long time. Market and principal risk. Inflation risk. Tax rate risk. Sequence of return risk. Withdrawal rate risk.
All sorts of risks. Think that these don't matter? Ask anyone who just retired last year.
And exactly how many people say they wished they had saved less. Or complain that they have too much money to enjoy life with.
So exactly how do you transfer that risk?
Using the long forgotten, much hated and despised product - annuities.
But there are many kinds. Immediate or deferred. Fixed or variable. Or in between.
Choose wisely and your retirement could be great. Otherwise, well, see you at the golf course - while you're working there!
