Posted by on Jun 8, 2019 in Articles & Advice, Blog, Columns, Featured |

Image Credit: Alex Nabaum


By Jason Zweig  | 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 wish—tax-free.

This vehicle, the Roth 401(k), is a great tool for many savers, as my colleague Laura Saunders has pointed out. Why don’t more people take advantage of it?

The likely culprits are the inertia and myopia of savers and retirement-plan providers—as well as a possible conflict of interest at investment firms that are supposed to put their clients first. (A regulation the Securities and Exchange Commission introduced this week to make brokers act in clients’ 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, The Devil’s 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


Who’s Training Your Retirement Navigator?

Forget the 401(k). Let’s Invent a New Retirement Plan.

Your 401(k) Is Not Safe at Home