Retirement Talk Radio's Podcast

For many of us a 401(k) is our primary saving tool for retirement. So, why is the 401(k) now being considered a disaster? Most people don’t have a lot of background in investing when they start saving, defaulting instead to the guidance of their employers. Originally developed to be a bonus in accordance with a pension, the 401(k) was not designed to be a stand-alone account to depend one’s retirement on. However, that's where many people's financial plans stand today.  Consequently, 401(k) plans were never analyzed as a replacement retirement vehicle, therefore, no one scrutinized the long-term practicality of using a 401(k) in this way. As we’ve seen more and more companies step away from pensions, we’ve also seen more investment in this type of account.  For big companies and wall street the 401(k) was a big win, for the average American people, not so much. It’s been a poor substitute for a pension plan. On today’s episode, we’ll explore the history of the 401(k) and whether it can be considered a disastr