PBS Drops Another Bombshell: Wall Street Is Gobbling Up Two-Thirds of Your 401(k)

Frontline Chart Showing Impact of 401(k) Fees Over 50 Years of Saving for Retirement

If you work for 50 years and receive the typical long-term return of 7 percent on your 401(k) plan and your fees are 2 percent, almost two-thirds of your account will go to Wall Street. This was the bombshell dropped byFrontline’s Martin Smith in this Tuesday evening’s  PBS program, The Retirement Gamble

This is not so much a gamble as a certainty: under a 2 percent 401(k) fee structure, almost two-thirds of your working life will go toward paying obscene compensation to Wall Street; a little over one-third will benefit your family – and that’s before paying taxes on withdrawals to Uncle Sam. 

To put it another way – you work for Wall Street. You are their slave, their lackey and as long as their toadies dominate in Congress, nothing is going to change on the legislative front to stop the looting. Wall Street seized millions of homes through illegal foreclosures and stripped the equity from the owners. They got away with it. Some Wall Street firms further enriched themselves making bets that the housing market would collapse, using their inside knowledge of the bogus loans they had made. They got away with that also. Now Wall Street is busy asset stripping the retirement plans of the working class in America while President Obama proposes to cut Social Security benefits through a discredited calculation called Chained CPI – conveniently causing people to save more in their 401(k) plans to make up for the potential loss. But the more you save, the more Wall Street asset strips. 

The Retirement Gamble was written by the outstanding team of Martin Smith and Marcela Gaviria, who exposed in January that when it came to Wall Street, the U.S. Justice Department had “no investigations going on. There were no subpoenas, no document reviews, no wiretaps.” The head of the criminal division of the Justice Department, Lanny Breuer, announced he was stepping down one day after that program aired. He returned to Covington & Burling, the corporate law firm representing Wall Street firms. 

The revelation of the two-thirds wealth transfer machinery was delivered by none other than John Bogle, the legendary founder of The Vanguard Group, a low-load mutual fund firm, who served as its Chairman and CEO from 1974 to 1996. Bogle is no slouch. He’s one of the most highly respected men in finance and graduated magna cum laude from Princeton University with a degree in Economics…

CONTINUE READING HERE!

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