Most retirment accounts are not funded by the companies on anything except paper.
A 401k is a fine deal, but you need to manage it like anything else.
Any company that doesn't offer a seperate 401k system (IMO) doesn't have a retirement system.
Heres the scam and how it works.
You go to work for me.
I am offering matching funds on a company 401k up to the first 3%.
Sounds like a good deal.
Except it a COMPANY 401k. Which usually means the 401K is based on company stock. When the stock goes up, so does your 401k. If the company goes under, you lose everything.
Plus, most companies only fund the 401k on paper. Since it's company stock they just do the book keeping and never really pay into the 401k till you actually retire.
Anything else and the 401k stays in company stock.
ALWAYS make sure any 401k is invested with a private company and not based on a single or set allotment of investments.
Same with a straight retirement account. It's based on the company value. If the company goes under, you lose everything.
Life sucks. Plan for your own future.
There is a law in place that if a company goes bust, the government is on the tap for your retirement. Problem is, you will only get about 10c on the dollar in value.
Unless you are a UAW worker and voted for Obama, then you get 55c on the dollar.