Brown’s Backlash

05 Aug Brown’s Backlash

There has justifiably been much backlash to Aaron Brown’s July 21 Bloomberg editorial claiming that 401(k) plans no longer make sense given fees and tax rates.  Steve Vernon gives a great response in his “Yes, Virginia, it Still Makes Sense” article.  Employer provided retirement plans provide matching contributions, the ease of payroll deduction, fiduciary oversight of investment options which, because of the SECURE Act, will now more likely include guaranteed lifetime income investment options, and so much more.  Employers generally include great retirement income calculators and financial education to to help workers plan for a secure retirement.  Plan fees have come down sharply in recent years and now even smaller plans can achieve economies of scale through aggregated 401(k), multiple employer plans (MEPs) and pooled employer plans (PEPs).  Competition and innovation continue to improve 401(k) plans.  So what is not to like? #401(k) #retirementplans #MEPs #PEPs

Read the full Forbes Article. Click the image.