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Subject:  Re: The 401(k) World Date:  5/4/2013  12:20 AM
Author:  intercst Number:  72176 of 88775

PSUEngineer asks,

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

So what's your solution. It can't be to bring the defined benefit plan back.


Since I think the biggest problem is what people are losing to Wall Street in fees, commissions and costs. I'd force every worker to save some percentage of his income (in addition to the FICA he's paying) and deposit it in the Federal Gov't Employee Thrift Savings Plan (TSP). Even the difference in fees vs. Vanguard (Vanguard averages 19 basis points, TSP 2.7) is enough to buy you an automobile after 40 years. The difference is probably 2 or 3 houses vs. Merrill-Lynch.

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