Comment on Why would someone desite a pension instead of a 401k?

Sanctus@lemmy.world ⁨1⁩ ⁨month⁩ ago

• andyortlieb@lemmy.sdf.org ⁨1⁩ ⁨month⁩ ago

  I put a good chunk of my 401k in CDs.

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  • IsThisAnAI@lemmy.world ⁨1⁩ ⁨month⁩ ago

    That’s a terrible strategy. You are going to cost yourself years of retirement.

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    • MantisWaffle@lemmy.world ⁨1⁩ ⁨month⁩ ago

      Feel free to elaborate.

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      • IsThisAnAI@lemmy.world ⁨1⁩ ⁨month⁩ ago

        4.5% vs 15%. CDs in particular have been garbage for the past 3 years even more than usual with the unstable rates.

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  • Zannsolo@lemmy.world ⁨1⁩ ⁨month⁩ ago

    Even if you were retirement age that’s a bad idea

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    • huquad@lemmy.ml ⁨1⁩ ⁨month⁩ ago

      CDs nuts! Ha got him!

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  • BombOmOm@lemmy.world ⁨1⁩ ⁨month⁩ ago

    Unless you are retiring in the next decade, it is highly advisable to invest a 401k in the stock market. You get significantly higher returns over the long run. And any losses due to a recession are more than made up for by the significantly higher returns every other year.

    When you are nearing retirement (5-10 years out), that is when you want to put the money into something safe and stable like CDs. That way if there is a recession as you retire, it won’t affect your fund.

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  • GBU_28@lemm.ee ⁨1⁩ ⁨month⁩ ago

    Please give this another read over

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