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My wife is worried that if the company I work for goes bankrupt, we lose all the money we put towards the 401k plan. She says something similar happened to her at a previous job.

As far as I understand, that doesn't sound right, as it would make more sense to me that if the brokerage that offers the 401k plan (in my case Prudential) goes bankrupt, I might lose the money.

So, basically, two questions:

1) Are there scenarios which mean the end of my 401k plan?

2) Can/should I insure against that?

Thanks a lot!

VeryYoungFool (young, but growing up)
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