“ Blow Up the 401k ”

[Shiloh Lundahl]

I recently listened to the podcast GRE (Get Rich Education with Keith Weinhold) and his guest was Ted Benna, who has been credited to being the father of the 401K. (Here is the link to the episode for any who are interested: https://itunes.apple.com/us/podcast/get-rich-educa...)

In the interview Benna stated that the 401K has veered from what it’s intended purpose was and that the mortgage fund brokers are the ones getting rich through the fees that they charge rather than the actual participant. He shared that it’s benefit has been that it can be a forced savings plan for most people, especially for those who have a hard time saving.  

Benna then shared that he is a real estate investor.

I think it is so sad that the majority of people think that the 401K is the way to go for retirement. It is definitely a cultural belief now and, in my opinion, it makes people lazy investors. Ultimately the 401K  makes the brokers and managers rich while the investors get what’s left over, if anything. I agree with Benna. I think we should blow it up. What do you think?