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Opinion: This single act would help many Americans reach retirement savings goals
Published: Apr 15, 2016 8:16 a.m. ET
Quote:
Here’s how: Workers in firms above a certain size without company-sponsored retirement plans are required to contribute to an IRA plan — unless they chose to opt out. These plans are relatively easy to administer for employers who simply “connect” their employees to a retirement plan run by a qualified financial institutions. The plans save small businesses from the hefty paperwork and sometime onerous regulations associated with traditional retirement plans.
Most employers offer employees the option of having multiple direct deposit accounts. ANYBODY can set up a IRA account with a mutual fund and then have the funds automatically taken out of their paycheck via direct deposit every payday. I don't talk about "big government," but do we really need government involvement when the average adult can do this on their own in less than 20 minutes.
Personally, I believe that the Federal Government should make available the SAME plan that it offers to Federal employees to all citizens. That way, everyone could participate in a plan that offers adequate investment choices at the lowest possible costs. That would relieve employers, especially smaller ones, of the hassle of offering such a plan and all of the various compliance requirements.
Yes. I think they should create a portable 401k using index funds and restricting transactions to keep fees low.
the problem is indexing is no guarantee of low turnover or low fees . not everyone gets vanguard or fidelity as a choice .
most index funds do not own everything in the index and so they do their own internal trading trying to capture the returns of the index without owning it totally .
you can see here turnover rivals some managed funds tax wise as well as expenses .
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