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URL:  http://boards.fool.com/the-401k-world-30665306.aspx

Subject:  The 401(k) World Date:  5/3/2013  2:06 AM
Author:  intercst Number:  72151 of 76384

Excellent review of the shortcomings of 401(k)s for retirement.

http://www.slate.com/blogs/moneybox/2013/05/01/it_s_a_401_k_...



— Poor people get absolutely nothing.

— Wealthy people who would have had large savings anyway get a nice tax cut that offers no meaningful incentive effect.

— For people in the middle, the quantity of subsidy you receive is linked to the marginal tax rate you pay—in other words, it's inverse to need.

— A small minority of middle-class people manage to file the paperwork to save an adequate amount and then select a prudent low-fee, broadly diversified fund as their savings vehicle.

— Most middle-class savers end up either undersaving, overtrading, investing in excessively high-fee vehicles or some combination of the three.

— A small number of highly compensated folks now have lucrative careers offering bad investment products to a middle-class mass market based on their ability to swindle people.

<snip>


intercst
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