Mr. Bogle was recently interviewed for a special Frontline did on America’s retirement system. This link will take you to the interview’s transcript. And by 5:00 PM ET today, you will be able to watch the episode here.
2 thoughts on “Interview on PBS’ Frontline”
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It’s all true, where the perfect storm of congress, big business, labor unions, and lobbyists will have created a huge financial crisis with the defined benefit side. Between the relaxing of accounting rules to the changes in the way that returns are projected and benefits calculated, it is already too late in many cases. I’m afraid that the hole has been dug too deep to fill up by the time payouts must begin, and as you said, the initial few will seem like petty cash compared to the bigger ones down the road.
As for the defined contribution side, don’t forget about allowing loans from 401K plans. Nothing like using your retirement as a christmas fund or new suv fund. You are also right on about 25 investments, with sometimes multiple funds of the exact same type (such as money market). Who can blame the average worker for being confused by all the choices offered when they log into the 401k website for the first time…
I’m really having a difficult time feeling sorry for the corporate employees feeling shortchanged with their pension problems. They have had compensation greater than their non-corporate citizens yet they didn’t save and invest or even learn how to do so. Instead they spent most everything they made-and then borrowed more! Now the big bad corporate parent is to blame for their plight! I’m reminded of the senior citizens who can’t figure out which Medicare Plan D is best for them! But, boy oh boy, do they ever have a sympathetic media in their corner. Now the majority of taxpayers who do not have pensions will eventually be looked to to bail out those who didn’t prudently plan and live their lives.