Reality Radio for a really great future. We're talking real money.

Friday comes around once a week, every single week. And every single week, almost like clockwork.

I try to answer a bunch of your questions that you've sent in at talking

real money dot com using the contact form sent in spoke in recorded in yeah kind of and today

we've got a bunch so questions and and a comment and we're going to start with the comment, then get to the questions.

Hi, Donna Tom. Recently a gentleman called in on behalf of his son and inquired whether it would be a

good idea to participate in his workplace, deferred compensation plan, as opposed to perhaps a Roth IRA or a 401k.

You suggested that this could be a good option.

I do agree with you.

However, you failed to mention that in most cases, if I'm not mistaken, a deferred compensation

plan, you would be an unsecured creditor.

And should the company go bankrupt, you are very far down the list of people that might get paid out.

So this is a risk that anyone participating in a deferred compensation plan should be aware of

because this is distinctly different from a Roth IRA or a 401K.

Thanks and keep up the good work.

Well, I don't recall the specifics of that particular call, but you're right, non-qualified deferred comp plans are not

protected as would a 401k be, because those are separate assets. They're they're, they're

custodied separately, they're protected, or a Roth IRA or any other qualified plan.

Companies don't have access to monies in a qualified plan. A non-qualified deferred

comp plan is just an agreement between the employer and the employee, and it can, if a company does go broke, it can be a problem as you are a

creditor, just like other creditors. So sure, yeah, if it's, if I had my choices, generally

speaking, I would start with the 401k up to the match and maybe beyond it if the investment

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