Sunday, May 15, 2011
401(k) savings start to rise; employees and unions should press employer benefits for indexed funds access
Christine Dugas has a very encouraging article Friday May 13 in USA Today, “401(k) savings are on the rise: Average balance reaches $74,900”, link here.
A typical family will need to accumulate wealth into the hundreds of thousands by age 65 for all wage-earners to anticipate comfortable retirement. We all need to become millionaires (not “accidental billionaires”).
There is a debate in Congress and maybe the courts as to whether (both defined benefit and defined contribution) employer benefits and various kinds of financial planners or investment advisors (of the “My Little Margie” kind) have fiduciary duty, and Ron Lieber has a New York Times article Saturday as to the way this controversy interplays with the lack of indexed funds being offered with employer-based 401(k)’s.
He says professionals and unions alike should be pressuring employers to offer these funds now. The complete article is here (paywall subscription may be needed).