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4 responses to “Exclusive Interview: Industry Veteran Greg Carpenter Draws a Line Against Too Much 401k Paternalism”

  1. Roland Aranjo

    Very good interview. The answer to your question about adding an annuity option to a 401k plan, seemed to be side stepped. Why is there such resistance to providing this option to private sector employees? When this option is available to the public sector (403b) employees. To me it seems to be a fiduciary responsibility to provide a diversity of investment (savings) options, especially in a period of market instability, which would include an annuity as part of the plan. Thanks

  2. Exclusive Interview: Industry Veteran Greg Carpenter Draws a Line Against Too Much 401k Paternalism | The 401k Study Group

    […] See on fiduciarynews.com […]

  3. Jack Towarnicky

    I strongly disagree that the 401k has failed lower income Americans. And, I would never call them “have nots”.

    The reality is that the 401k can be re-positioned away from a “retirement savings plan” into a “lifetime financial instrument” -away from an employer specific retirement savings plan focused on saving for retirement, to a participant-specific account for accumulating wealth morphing it into a peri-employment financial instrument focused on saving along the way to retirement.

    Most of us were “have nots” once upon a time… When our incomes were low, and we were starting our savings efforts. Today’s 401k, “Release2.0″ with auto features is a light year ahead of my first 401k (1984). Add in Roth features, for those just starting out with low wages, and even modest rates of savings can lead to significant accumulations.

    Minor changes to regulations and code provisions, coupled with 21st century administration and processing, will take us to the next Level, 401k 3.0 – realizing the promise of an effective wealth accumulation tool for almost all workers.

    and, once assets beyond a base are accumulated, the income stream option, alongside social security can become a reality.

    I’ve seen it done, time and again…

  4. Mark Zoril

    Have nots? Really? Seems like a pretty glib comment to refer to a wide range of people that may or may not be struggling to have a decent retirement. I have been a retirement advisor for going on 18 years and have worked with many of these “have-nots” who have very modest savings, but also live very modest lifestyles. Many of them are friends and good members of their communities as well.

    These are real people who too have dreams, and in many cases what they are able to accumulate in their retirement plans can make a difference in their future. Sure, they may not spend 3 months out of the year on the Italian Coast and then head back for some time in Aspen, but in retirement, they may enjoy continued work, their families, more free time, and hobbies and hopefully good health as well.

    In general, I agree Carpenter’s view on this. But as an advisor to many folks in the middle and lower class, I would not necessarily agree with his viewpoint that the system has failed them. But the use of the term “have nots”, in my view, indicates that many of those that are in positions of influence in the industry are somewhat removed from the aspirations and circumstances of these people.

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