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101

Was the 401(k) a Mistake? How an obscure, 45-year old tax change transformed retirement and left so many Americans out in the cold. (www.nytimes.com)

submitted 6 months ago by Blaze@reddthat.com to c/personalfinance@lemmy.ml

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[–] PowerCrazy@lemmy.ml 41 points 6 months ago* (last edited 6 months ago) (2 children)

401ks weren't a "mistake" they were designed to give wallstreet traders more money and for that task they have succeeded extremely well.

e: To the tune of $7trillion according to the article.

[–] Raiderkev@lemmy.world 9 points 6 months ago

I like how you got downvoted. This is 1000% true.

[–] Copernican@lemmy.world 9 points 6 months ago* (last edited 6 months ago)

How do you think pension plans make money? They are managed by fiduciaries responsible for investing. Guess where they invest. 20% of the stock market is owned by pension funds :https://retiregenz.com/what-percentage-of-the-stock-market-is-owned-by-pension-funds/