nun
Thinks s/he gets paid by the post
- Joined
- Feb 17, 2006
- Messages
- 4,872
WADR, I think you are seeing instances where people have failed to prudently save for retirement as a failure of the system. There are many instance of folks of relatively modest means and income who saved regularly and have accumulated substantial wealth and can ER. To me these successes prove that the problem is the people, not the plans. Can plans be improved? Surely! But the means are there for those of even modest means who have the discipline to save regularly and invest prudently to build wealth beyond their dreams.
And conversely people who do as they are advised can fail. The system is fine for us on here because it has worked. I applaud those of modest means who saved and succeeded, but there are plenty who saved and failed and more who just didn't or couldn't save enough and so the system has failed them. I like your optimism of looking at the successes, but we have as much to learn from the failures and need to modify the system to reduce the possibility of failure and increase the amount saved, and that should fall on both the employee and the employer.......so if we stick with the DC arrangements all plans should offer a minimum range of funds that must include low cost index funds, then you can add actively managed stuff for those dumb enough to buy it. The 401k plan should pay for a fiduciary advisor to consult with each employee and set up an investment plan. Finally there should be mandatory minimum employee and employer contributions.