Comments on: The high-cost index-fund 401(k)

By: realist50

realist50 — Sat, 23 Feb 2013 22:08:53 +0000

To Auros’s point, – $50k per year isn’t off by much as an assumption for someone who is 25 years old with a bachelor degree and a full time job – http://nces.ed.gov/fastfacts/display.asp ?id=77 .

By: Auros

Auros — Fri, 22 Feb 2013 22:25:01 +0000

To be fair to Schwab, their starting point for the “average worker” sounds reasonably typical _for a worker who has access to any kind of retirement plan_. (The rest of the assumptions are, as you say absurd, but then, so are many of the assumptions that companies have used over the decades to pretend their pension funds were adequately funded.) You have to remember that some very large portion of workers are people who are employed with hourly wages and no benefits in crummy service jobs. (Those jobs _ought_ to pay more and provide retirement benefits, but that’s a whole separate fight, which might be better waged through unionization than by arguing with folks like Schwab.)

By: klhoughton

klhoughton — Fri, 22 Feb 2013 17:36:52 +0000

There is good reason many of us are holding FINRA in contempt today for their declaration that Schwab should be able to declare themselves immune from class-action suits…