[quote=SK in CV]
Is the expectation that the “401K system” has unique risks associated with it that are different from risks associated with other retirement plans or other financial investments?[/quote]
The risks are the same. 401K aren’t as good as a public sector pension because of the assumed taxpayer backstop, but who knows if that holds up. The reality is that as the boomer demographic has moved through the system there has been demand and supply imbalances. Right now there’s large demand for assets to fund retirement. Down the road there will be a large supply of assets wanting to be sold to fund retirement. The demand to buy all those assets just isn’t going to be there when that time comes and asset prices are likely to fall.
