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kipp440: 401K's

I bemoan the erosion of the private pension system in this country. 401K's are great IF YOUR COMPANY DOES NOT GO OUT OF BUSINESS. But how many millions of Americans now will be left with only their Social Security for income. These people will not be able to retire until they are physically unable to work.

I don't believe in 401K's. IMO self-directed IRAs are the way to go. Most 401K plans offer a menu of investment choices, usually the company stock and some mutual funds. The mutual funds are usually not the best out there. And by owning only one stock, the company's, the 401K holder is putting all of their eggs into one basket. VERY STUPID. As Cramer says, "diversification is the only free lunch."

I think the current generation of retirees over 70 years old is going to be the U.S.'s last generation of seniors the majority of which aren't living in poverty.