tag:blogger.com,1999:blog-32914592.post1793313550619609008..comments2024-02-21T14:18:09.212-08:00Comments on R World: From Pension Plans to 401(k) Plans (and the income gap widens))Ron Davisonhttp://www.blogger.com/profile/11972794876337195698noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-32914592.post-41177252582219349052012-06-11T22:36:45.625-07:002012-06-11T22:36:45.625-07:00Gabby - I don't disagree with any of your poin...Gabby - I don't disagree with any of your points. You make an important argument.<br />I would still argue that the inherent dynamic of creating more inequality by moving to 401(k) plans is something that few people mention. For me, it's just one more force towards income inequality and all of the (mostly) negative consequences that comes with that, and should be given weight.Ron Davisonhttps://www.blogger.com/profile/11972794876337195698noreply@blogger.comtag:blogger.com,1999:blog-32914592.post-38476938718126372492012-06-11T19:09:25.800-07:002012-06-11T19:09:25.800-07:00If having a difference in value between two differ...If having a difference in value between two different plans was the definition of inequity and it was the only basis for making a value judgement, then maybe you would be right. However, everything has pros and cons; thus should be evaluated with all things considered.<br /><br />During a era when a worker could start and finish their career with one company, pensions made sense. With both companies and jobs both being subject to shifting markets, it is an advantage to be able to take your "retirement" with you. Many companies provide both; a small pension and a small match to your 401(k).<br /><br />As far as variations in returns, most 401(k) companies provide "consulting" and guide investors toward mutual funds. It is true that individuals must become more knowledgeable about investing but that is true about many topics that now can be considered a "literacy" issue. <br /><br />The list can go on and on but the point is there are advantages that should be considered before choosing a defined benefit program over a define contribution programgabby57https://www.blogger.com/profile/08071669879987130941noreply@blogger.com