Many companies are transitioning their retirement programs from defined benefit plans, such as pension plans, to defined contribution plans, such as 401Ks. This puts the employee in a much more active situation. Instead of paying a fixed amount and having a predetermined, and guaranteed benefit, you decide how much to put in to your plan. You must also manage your account to ensure that it performs well. You have no guarantees and the lifestyle you’ll be able to afford in retirement is entirely up to you.
If you enjoyed this post, subscribe to my feed via RSS or email.
You can support Richer by the Day by visiting our advertisers and sponsors. A thumbs up from any StumbleUpon users would also be greatly appreciated.
Related Posts
Invest in More than RetirementMy Lending Club Posts
Getting the Maximum Out of Your Company’s 401K Match (Updated)
2008 IRS IRA Contribution Limit
New GI Bill Offers Full Tuition for Active Service
