Now that Roth IRA conversions are available to people who previously hadn’t been eligible, there’s been quite a spike in coverage. However, the spotlight should probably be focused more on those who can have a Roth, but as yet do not. Read more »
Recent posts tagged ‘retirement’
While I have been publishing research for many years, I consider myself new to the blogosphere. So I was a little surprised when my recent post on a new 401(k) rating service, Brightscope, elicited some response, including a critique from founders of the company. Frankly, I don’t think anyone has ever created an “open letter” to me before now. But I was glad to get a conversation started. Read more »
401(k) accounts are typically among the largest assets held by middle- and upper-middle-income households in the United States. So naturally they draw a lot of attention—in the marketplace, in the media, and in Washington. The government, for example, is proposing new rules on reporting fees and promoting impartiality in investment advice.
Given all the back and forth in Washington these days, with policy meetings and dramatic proposals to revolutionize retirement, I’ve got retirement-income solutions on the brain. So here’s a modest proposal for providing “Retirement Income Security for All.”
I’ve mentioned in several previous posts that the anxiety about 401(k) balances has been largely overstated, in part because of the beneficial effects of ongoing contributions and diversified portfolios. This point has come across as Pollyanna-ish to some of you, a point that I can sympathize with, even though I largely disagree with it.
However, I am no Pollyanna about retirement risks, and want to spend a moment discussing what I view as the most important real risk embedded in your retirement savings account: the possible toxic combination of unemployment and market losses.