133
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
this post was submitted on 19 Nov 2023
133 points (94.6% liked)
News
23376 readers
1808 users here now
Welcome to the News community!
Rules:
1. Be civil
Attack the argument, not the person. No racism/sexism/bigotry. Good faith argumentation only. This includes accusing another user of being a bot or paid actor. Trolling is uncivil and is grounds for removal and/or a community ban. Do not respond to rule-breaking content; report it and move on.
2. All posts should contain a source (url) that is as reliable and unbiased as possible and must only contain one link.
Obvious right or left wing sources will be removed at the mods discretion. We have an actively updated blocklist, which you can see here: https://lemmy.world/post/2246130 if you feel like any website is missing, contact the mods. Supporting links can be added in comments or posted seperately but not to the post body.
3. No bots, spam or self-promotion.
Only approved bots, which follow the guidelines for bots set by the instance, are allowed.
4. Post titles should be the same as the article used as source.
Posts which titles don’t match the source won’t be removed, but the autoMod will notify you, and if your title misrepresents the original article, the post will be deleted. If the site changed their headline, the bot might still contact you, just ignore it, we won’t delete your post.
5. Only recent news is allowed.
Posts must be news from the most recent 30 days.
6. All posts must be news articles.
No opinion pieces, Listicles, editorials or celebrity gossip is allowed. All posts will be judged on a case-by-case basis.
7. No duplicate posts.
If a source you used was already posted by someone else, the autoMod will leave a message. Please remove your post if the autoMod is correct. If the post that matches your post is very old, we refer you to rule 5.
8. Misinformation is prohibited.
Misinformation / propaganda is strictly prohibited. Any comment or post containing or linking to misinformation will be removed. If you feel that your post has been removed in error, credible sources must be provided.
9. No link shorteners.
The auto mod will contact you if a link shortener is detected, please delete your post if they are right.
10. Don't copy entire article in your post body
For copyright reasons, you are not allowed to copy an entire article into your post body. This is an instance wide rule, that is strictly enforced in this community.
founded 1 year ago
MODERATORS
Do you think 401ks are a pyramid scheme?
Do you think the stock market is not?
Wikipedia uses a good definition for pyramid scheme:
I don't think that describes a 401k. I don't get money if I convince you to open a 401k. I do pay fees to a company to manage my 401k but I've chosen the lowest fees available to me.
Tell everyone who lost their retirement in a 401k to a big company that it is not a pyramid scheme
Well how do you define pyramid scheme and how do you think it applies to 401ks?
Cite your sources. 401ks are insured against loss. Are you referring to pensions?
That's not even slightly true. The only differences between a regular investment fund and a 401k are that you don't have to pay income tax on the money you put into a 401k it and you can't withdraw your money before retirement without substantial penalties.
Never said they were special. But they are (generally) regulated securities, unlike pensions. Regulated securities have many layers of protections.
https://www.aarp.org/retirement/planning-for-retirement/info-2023/safety-net-protections-for-account-assets.html
Really? Like even during substantial drops in the 2008 crisis? I'm legitimately asking because if this is true then I have some digging to do.
Okay... But the 401k holders aren't being cheated in this instance. They bought an asset that can increase or decrease. It increased for a long time. Then decreased. Then increased again FAR beyond where it was in 2008 just 6 years later. Most investors kept their money in and are doing just fine.
401ks are insured against losing the assets, e.g you own 500 of a particular option, you will always own those 500 unless you sell or that particular asset goes belly up, which is quite rare.
Pensions are a different beast. Closer to the pyramid scheme referenced earlier, and were generally dissolved over the last 40 years by the companies that promised them.
No, no, I get all that. I'm just trying to understand what is meant by 401k being insured against losses...I didn't think that was a thing. I thought any investment whether my personal stocks, 401k, or Roth IRA were all subject to "could disappear overnight kthxbye".
It depends on the assets in your account, but if it's not something covered by the FDIC, chances are it has coverage from the SEC, FINRA, ERISA, others, or several of these.
https://www.aarp.org/retirement/planning-for-retirement/info-2023/safety-net-protections-for-account-assets.html
You're the real MVP. Thank you.