"That AARP would even take seriously the notion of replacing stocks with bonds in 401k plans ('401k Plans: Too Risky for Retirement Security?') reflects the woeful state of innumeracy in this country. 401k plans have problems but it's the stingy employer match that's making them ineffective, not the fact that employees invest in stocks. What's more, if employers were forced to use only bonds in defined benefit plans employers would probably terminate the plans-and I wouldn't blame them. Why? Over the long haul stocks outperform bonds by huge margins so employers would have to contribute more to ensure that their employees are on track."  MORE >>