Cindy is nearing retirement and has worked at a private company for many years. Which employer-sponsored retirement plan would ensure a stable income for Cindy during retirement and why?
Answer
A
401(k); no risk of reduced benefits if the company files for bankruptcy
B
pension; provides guaranteed monthly income in retirement
C
403(b); similar to 401(k) but typically for public school and nonprofit employees
D
401(k); may include employer contributions and offers investment options but no guaranteed income