Alcoa stopping defined benefit plan for most new hires
I've been reading Rich Dad Prophecy and even though I'm only a few chapters in I can tell it isn't a feel good book when it comes to ERISA and 401k plans.
If you're planning on retiring, you really should read that book. Seems that a major flaw is that with these plans, you HAVE to withdraw money at 70 1/2 years of age and with all the people withdrawing from the stock market at the same time, it will take a dive.
Alcoa stopping defined benefit plan for most new hires
NEW YORK (Reuters) - Alcoa Inc. (AA) said on Monday it will eliminate its defined benefit pension plan for most new U.S. salaried employees, effective March 1, 2006.
The world's biggest aluminum producer said that in its place, the company will offer a 401(k) defined contribution plan for new hires. The changes will not affect current Alcoa employees or retirees, who will continue to participate in their current defined benefit pension and defined contribution savings plans.
If you're planning on retiring, you really should read that book. Seems that a major flaw is that with these plans, you HAVE to withdraw money at 70 1/2 years of age and with all the people withdrawing from the stock market at the same time, it will take a dive.
Alcoa stopping defined benefit plan for most new hires
NEW YORK (Reuters) - Alcoa Inc. (AA) said on Monday it will eliminate its defined benefit pension plan for most new U.S. salaried employees, effective March 1, 2006.
The world's biggest aluminum producer said that in its place, the company will offer a 401(k) defined contribution plan for new hires. The changes will not affect current Alcoa employees or retirees, who will continue to participate in their current defined benefit pension and defined contribution savings plans.
posted by Brian | 2:40 PM
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