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General Discussion => Welcome and General Discussion => Topic started by: Glenstache on June 11, 2018, 01:43:22 PM

Title: Interview with the first person to figure out 401(k)
Post by: Glenstache 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: It’s helped millions of people accumulate trillions of dollars. I have no regret about that. It’s 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 it’s ugly.

White: So what have they done? I guess we’re 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.

Title: Re: Interview with the first person to figure out 401(k)
Post by: qval 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...

Title: Re: Interview with the first person to figure out 401(k)
Post by: Paul der Krake 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.