Calculating Returns | Time Travel, Recession Cascades, Privateers, BRIC House & The Return of Fun?
Pirates of Finance
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The Wealth Effect of Market Based Retirement Accounts
As people have continued to use 401Ks and define contribution plans as retirement vehicles, that their household budget has become more intrinsically linked through the wealth effect to the market. If you used to live in a world of a defined benefit plan, an ultimate style pension, like, I don't think you really gave, you didn't care, right? Now where people are having to save for their own retirement in a 401K, if all of a sudden you go, holy shit, my life savings just dropped 50% in my, you know, 80, 20 market portfolio, I'm not going to go out to dinner as much, right? So I wonder if our move to market based
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