An Opinion On “401(k) Plans Step Into the Sunshine”
The 401K was created by finicial markets and employers to drive up equities as a whole and employers stock advice individually. Orginally the concept was so corrupt it had to be corrected, you knew it had to be to be corrected. All matching funds had to be held as company stock and individuals were compelled to invest their own portion in company stock, the matching portion could not be moved out of company stock. This of course was changed and is a little better. The intention of driving up equities came to fruition as one can see by looking at a chart starting in the early 80s that reflects the S&P or the DOW. In addition since this period the portioin of GDP garnered by the finicial industry has grown from 2-3% to 15-16%, almost the same portion as health care. If you think this is good, good for you. I however think it is the biggest ponzi scheme ever pulled. Reagan would be proud.