Author Topic: Interview with the first person to figure out 401(k)  (Read 1043 times)

Glenstache

  • Handlebar Stache
  • *****
  • Posts: 1632
  • Age: 186
  • Location: Seattle!
  • Target FI date 2027 (maybe?)
Interview with the first person to figure out 401(k)
« on: June 11, 2018, 01:43:22 PM »
Interesting interview article with the guy who first figured out the 401(k).
https://www.politico.com/agenda/story/2018/06/07/ted-benna-ben-white-interview-000668

One snippet from the article:
Quote
Benna: Itís helped millions of people accumulate trillions of dollars. I have no regret about that. Itís probably between $10 [trillion] and $15 trillion, I figure, when you count the rollovers. So, I have no regret about that. Where I have my regrets is, frankly, what the money-fee people have done. And itís ugly.

White: So what have they done? I guess weíre talking Wall Street here.

Benna: Yeah, we sure are. Well, for starters, you know, 401(k) made the mutual fund industry. I mean, it was a ma-and-pop business before that.
No, really. I spend a lot of time thinking about rocks.

qval

  • 5 O'Clock Shadow
  • *
  • Posts: 20
Re: Interview with the first person to figure out 401(k)
« Reply #1 on: June 17, 2018, 06:45:13 PM »
Engaging read. Nothing we don't already know about average retirement savings in this country, but it's interesting to think about how the risk in a defined-benefit pension is very dependent on the stock market, just like a 401k is. But at least with a 401k you don't lose everything, like you would if your under-funded pension goes bankrupt...


Paul der Krake

  • Magnum Stache
  • ******
  • Posts: 4006
  • Age: 10
  • Location: us-west-2
  • Bot - Do Not Reply
Re: Interview with the first person to figure out 401(k)
« Reply #2 on: June 17, 2018, 07:08:23 PM »
Nice read. Love the bit about how the golden days of defined benefits were anything but. That myth needs to die.