401(k)s Have Reached Their Expiration Date
The plans are as good as they can be under the current framework--and that's not good enough.
This article has been a long time coming. My views on 401(k)s have evolved over the years, but until now, always incrementally. My columns advocated this improvement, that change. Not this installment. It calls for an overhaul.
That statement is, to an extent, a confession. The 401(k) structure is deeply unpopular with most investment writers, who regard it as a patchwork scheme that permits companies to foist their retirement-income risks onto employees. Over the years, I have been among the handful of exceptions, defending 401(k)s while others denounced them. No longer.