The 401(k) started as a tax-deferred bonus deferral tool in 1978, it was turned into a mass savings vehicle in 1980 meant only as a pension supplement.
It evolved into America’s primary retirement system as companies ditched guaranteed pensions, shifting all risk to workers. Wall Street now profits massively from high fees and asset management on trillions in 401(k) funds.
https://v.redd.it/x5yx1b42o9dg1
Posted by Richnaps
4 Comments
The best thing you can do, is convert your 401k to a PCRA*, and choose your own investments.
*Not always possible.
Funny how people forgot about this like it was hundreds of years ago
If you get a good employer match though it’s life changing
An investment-based retirement plan with tax bonuses works better than any state or company pension, though.