Is this first of all I'm just going to ask one macro question to start. Lee is this a good thing for retail investors to be able to access private investments in their 401k plans potentially. Right.Um and so I hedge the answer only in that if we're talking about it being in target date funds or target risk funds then absolutely I think it's a good thing for investors. Uh but on a standalone basis that would give me reason for concern. Why on target date funds versus just regular type investments does it hav ...

Joining us right now is SEC Chairman Paul Atkins and we welcome him to the broadcast uh this morning. It was nice to see you in person at this table just a couple of weeks ago. Uh this bill now officially uh in the books.How does it change things uh and how does it change things for you in terms of the assets that you think are going to come into the market that you will ultimately need to regulate in the public sphere, if you will. Oh, thanks uh Andrew and it's great to see you again and thanks for having ...

sets the open US retirement market to crypto investments. And what he's talking about is 401ks that are in the United States. And I thought to myself, well, as far as 401ks, what do we have.And what is the assets under management. So, based the most recent data, 401k plans in the United States hold almost $9 trillion in assets as of December 30, 2024. can't get any uh more uh current information that but imagine $9 trillion coming in.That's great. We'll see if it does. But, you know, not all $9 trillion goi ...

Retirement Savings Trends - US adults are saving nearly 8% of their paycheck in employer-provided retirement plans [1] - When combined with employer matches, total retirement savings reach approximately 12%, a record high [1] - Financial analysts recommend saving 12% to 15% of salary for retirement [2] - Auto-enrollment and auto-escalation in 401k plans are driving increased savings rates [2][3] - Employers are automatically enrolling employees into 401k plans with deferrals of 4% to 6% of their salary [2] - Auto-escalation features increase contribution limits by 1% to 2% annually [3] Roth 401k Adoption - More retirement plans are offering Roth 401k options [4] - Contributions to Roth 401k are taxed upfront, but the investment growth and withdrawals in retirement are tax-free [5] Hardship Withdrawals - Hardship withdrawals from retirement plans have increased [6] - Withdrawals are concerning because they are taxed and subject to a 10% penalty if the individual is under 59 and a half years old [8] - Common reasons for hardship withdrawals include housing foreclosure, medical expenses, and making ends meet [8]

Retirement Planning & Investment Vehicles - 401(k) plans offer tax-deferred investment opportunities, allowing pre-tax contributions and tax-free compounding until withdrawal [6][11][12] - Employer matching of 401(k) contributions is considered "free money" and should be taken advantage of [16] - Individual Retirement Accounts (IRAs) offer the same tax-favored status as 401(k)s but may provide more investment flexibility and lower fees [17][19] - Roth IRAs allow contributions with after-tax income, offering tax-free withdrawals in retirement, particularly beneficial for individuals in lower tax brackets [88][89][97] - The author advocates for increasing the IRA contribution limit to $10,000 per year [86][87] Investment Strategies & Advice - Younger investors should consider investing primarily in stocks, taking on more risk due to their longer time horizon to recover from potential losses [25][46][47] - Paying off high-interest credit card debt should be a priority before investing, as the interest can erode investment returns [38][39] - Saving early and consistently is crucial for achieving financial freedom, and the stock market can be a tool to encourage saving [36][43][44] - A low-cost S&P 500 index fund is a suitable option for passive investing, especially for those who lack the time or expertise to pick individual stocks [23][70][74] - Actively managed mutual funds often underperform their benchmarks due to high fees and incentives focused on asset gathering rather than performance [62][63][68] Saving for Education - 529 plans are recommended for college savings, offering tax-free growth and withdrawals for qualified education expenses [102][106] - Frontloading a 529 plan with up to $85,000 (single) or $170,000 (married filing jointly) can maximize the benefits of compounding [109][110]