Dec
29th
Mon
29th
The ascent of self-directed, defined-contribution plans — of which the 401(k) is the most common type — is a national catastrophe waiting to happen. The average employee, who is not familiar with the market basics outlined in this book, is no more able to competently direct his own investments than he is to remove his child’s appendix or build his own car.
— William Bernstein, The Four Pillars of Investing (2002). And even if you read his book, you really can’t do anything about your company’s 401(k) (unless you’re in charge of it); everything you’re supposed to do investment-wise(ly) isn’t even an option in the interface. You lose out if you don’t participate, but if you do, you’re just trying vainly to avoid losing money in a siphon-shaped system until someday you can roll over to a less predatory IRA? It’s really kind of discomforting to think of all the ways people systematically and institutionally take advantage of others. Does all success have to come at the expense of others?
