Whelp… it looks like index funds didn’t save CalPERS. Back in 2014, the California pension systems (CalPERS and CalSTRS) yanked a bunch of money out of actively managed funds and shoved them into passive index funds. Yay passive investing. Uh. Wait. CalPERS and CalSTRS are still underfunded and still not making headway, aren’t they? Yes, they […]
The risk with 401(k)s no one likes to talk about
Was reading some interesting stats the other day. According to the DOL, there are, like, 650,000 retirement accounts in the U.S…. 80% of which are 401(k) plans. When these plans were audited by the Employee Benefits Security Administration (EBSA) (which is the regulatory body that enforces the Employee Retirement Income Security Act which governs retirement […]
Why retirement plans are a big fat tax idiot
Let’s rap about why retirement plans are the basic bitch of the financial industry. First, the tax “benefits.” Everyone talks about them. But, where are they? Really… Enter, the professionals. The Society of Actuaries (which helps guide the design of pension and retirement plans) tells the general public what most financial planners have known for […]