Image Credit: Alex Nabaum
By Jason ZweigÂ | June 7, 2019 12:02 p.m. ET
Imagine a savings vehicle that allows you, in retirement, to withdraw as much or as little as you wishâtax-free.
This vehicle, the Roth 401(k), is a great tool for many savers, as my colleague Laura SaundersÂ has pointed out. Why donât more people take advantage of it?
The likely culprits are the inertia and myopia of savers and retirement-plan providersâas well as a possible conflict of interest at investment firms that are supposed to put their clients first. (A regulation the Securities and Exchange CommissionÂ introduced this week to make brokers act in clientsâ best interest would do nothing to mitigate this kind of conflict.) As usual, the obstacles to building wealth are rooted in psychology and hidden incentives.…
To read the rest of the column:
For further reading:
Benjamin Graham, The Intelligent Investor
Jason Zweig,Â The Devilâs Financial Dictionary
Jason Zweig, Your Money and Your Brain
Jason Zweig, The Little Book of Safe Money
Articles and other resources:
Laura Saunders, “Wow, Did We Get a Lot of Questions About the Roth 401(k),” The Wall Street Journal, May 31, 2019
Jack Towarnicky, “Are You Still Avoiding Roth?” PSCA blog, Feb. 21, 2019
“Roth 401(k), the Unsung Hero of Retirement Plans,” Vanguard Institutional blog, Dec. 14, 2018