401k? Or pension?

So why are they telling me there will likely be cuts?

 

Cuts are not losing everything. Hope you have a IRA but then again there are no guarantees in that either.

 

Pensions are as good and stable as the company is. I know many people with great ones. I also know people that have been screwed over. I could sit here and type out a thousand word or more diatribe for a pension and do one against them. I have went the 401K route made some good choices as well as some good luck. Not being able to drive sucks. One of my life's dreams was to be a safety person. Not going to happen now. Oh if I wanted to relocate I could because of a standing job offer, however im 60 suffering from several problems. I rather just enjoy life. On beautiful mornings go walk outside listen to the birds singing and watch the ships coming and going out of Norfolk.

 

Well the chances of losing “everything” in a 401K is pretty darned slim too. I got out of central states a long time ago so it’s not a big deal. I’m in another pension that’s very solid but I still have a ways to go so it concerns me.

 

No sir they did not. Only the ones that had 401ks with money invested in Enron. I know several people that worked at Enron that walked away with their 401Ks intact.

 

I would be concerned about Central State if I were you. Whenever they have town halls or public forums make sure to voice your opinion.

 

I’ve only got 5 years in it and it’s not even part of my plan.

 

Good for them but in reality the vast majority of people do not know how to invest. For the several people you know who walked away with everything thousands walked away with nothing.

 

Enron is kind of an extreme example, I worked for several companies that had 401K’s and they weren’t invested in the company. If the company went broke nothing happened to the 401K.

 

And this is why using a good financial planner is essential. I mentioned the 87 crash a while back. I had a great guy to contact me. I was in Eloy Az that day. We spoke and he told me about a good opportunity because of that crash. I bought some securities for pennies on the dollar. Those securities are worth 7 figures now. Now that is a vulgar comment because I generally don't comment on my net worrh. I only brought it up because so much crap is give as advice. Investment is about more then good luck. It is also about taking advantage of one in a lifetime opportunities and leveraging them. My retirement is not now or never will be tied to just one company. My risks are spread out across many sectors of the economy.