|It became obvious that way
too many people were relying on the types of plans where the benefits were
based upon how much you put into the plan.
|And, we all began to see for
the first time in a long time how vulnerable the business itself can be when
plan assets are subject to mismanagement and poor investment decisions
|However, the problem with
that was two fold – first, people with these contribution plans typically had
no idea as to their specific retirement needs. Secondly, their whole retirement future was uncertain because of
another unpredictable variable, which is
investment uncertainty. How
wisely can they invest and can the economy cooperate.
|And, as far as the defined
benefit plans that were out there, employers and ultimately the employees
were at risk of poor plan performance from an investment standpoint.