I thought this comment was spot on.
I.R.S. Raises Maximum Annual 401(k) Contribution -NYTimes.com.
There was a report here that the finance industry (aka "wall street") takes about 40% of the returns on 401K and other retirement investments in fees.
Is it any wonder we have moved from a defined benefit program, with the pension money managed by professionals, to a "new, improved" retirement program with the money managed by amateurs. As amateurs we end up paying huge fees for the privilege of managing our own money. Those fees go into the pockets of the wall street executives who use it, in part, to finance political campaigns.
It all works out well for the smart Ivy Leaguers who invented and control this system. They even get to choose which of their classmates will regulate it, or not regulate it.
I couldn't have said it better! I haven't confirmed the initial assertion, but suspect it could be true. (If you want to avoid that, put your money at Vanguard, or perhaps TIAA-CREF. Index mutual funds are superior to managed funds -- unless you listen to your stockbroker.)
Two other factoids from the original blogpost:
A footnote to that table showed that 47.9 million workers made contributions, out of 150.4 million workers.
The primary table on the page shows how many workers fell into each of 59 wage brackets, and their aggregate earnings. Just for kicks, I looked at how far down the wage scale one would go to take the top 47.9 million workers; it turns out that the answer is around $43,000. But that will be the subject of another blogpost here.
I.R.S. Raises Maximum Annual 401(k) Contribution -NYTimes.com.
There was a report here that the finance industry (aka "wall street") takes about 40% of the returns on 401K and other retirement investments in fees.
Is it any wonder we have moved from a defined benefit program, with the pension money managed by professionals, to a "new, improved" retirement program with the money managed by amateurs. As amateurs we end up paying huge fees for the privilege of managing our own money. Those fees go into the pockets of the wall street executives who use it, in part, to finance political campaigns.
It all works out well for the smart Ivy Leaguers who invented and control this system. They even get to choose which of their classmates will regulate it, or not regulate it.
I couldn't have said it better! I haven't confirmed the initial assertion, but suspect it could be true. (If you want to avoid that, put your money at Vanguard, or perhaps TIAA-CREF. Index mutual funds are superior to managed funds -- unless you listen to your stockbroker.)
Two other factoids from the original blogpost:
- Five percent of the roughly 60 million 401(k) plan participants contribute the maximum amount, said David Wray, the president of the Plan Sponsor Council of America (formerly known as the Profit Sharing/401k Council of America). And roughly another 5 percent would contribute the maximum amount, if their companies let them, he said.
- Thirty-three percent of workers age 21 to 64 used 401(k) plans in 2009, according to the Employee Benefit Research Institute.
A footnote to that table showed that 47.9 million workers made contributions, out of 150.4 million workers.
The primary table on the page shows how many workers fell into each of 59 wage brackets, and their aggregate earnings. Just for kicks, I looked at how far down the wage scale one would go to take the top 47.9 million workers; it turns out that the answer is around $43,000. But that will be the subject of another blogpost here.
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