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Cake day: June 1st, 2023

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  • 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.