Hi Chris!
Thank-you for your comment. 10% may seem a little high, however if you are looking over a long period of time (20-30 years), 10% isn’t extraordinary. In fact during the 20th century, the stock market has averaged 10.4% each year. There were of course the years that were lower than others and vice-versa, however we are talking about the AVERAGE here. Another thing that the investor should be aware of is the 401(k), the 457(b), the 403(b), etc. is YOUR money. You can set up beneficiaries and will it to your children, grandchildren, or whoever you like. A pension has a GREAT guaranteed rate of return, however it isn’t managed by you and it ends with your surviving spouse. We all saw what happened in Detroit with their pension system when the city declared bankruptcy too. The bottom line is to make sure as a first responder you are taking advantage of both the pension benefit (you don’t have a choice) and your own contribution plan (401(k), 403(b), 457(b), IRA, ROTH IRA, etc.) to keep your money protected from taxes, and to have enough money when you reach retirement. Thanks for your role in public safety and for the contribution you make towards your community!

Like yourself I’m a first responder, and as a firefighter your likely paying into PSRS. That is our best retirement plan. You put in your time and your guaranteed a payout for the rest of your life, not dependent on how well the market does. Also, unlike a 401k/457 the money will never run out and will keep coming for the rest of your life.

It’s sad that our society has shifted away from defined benefit plans in favor of the 401k’s. While I understand the savings for the employer, I feel many Americans just don’t have the willpower to save on their own, thus the need for webpages such as this.

James,
I think we are on the same page! Thanks for the comment. I know exactly what you mean – I was once of these “hyper-consumers”, however I somehow (thank goodness) figured out before I ended up….POOR!