Insights
Financial Insights
By
Lorenzo Amaya
The Hidden Cost of Inflation—and the 401(k) Dilemma
As inflation reaches record highs, Americans are feeling the pressure. Everyday expenses are climbing, yet most people's monthly income and financial obligations remain the same.
According to Bankrate, the average savings account balance is just $5,300, and it's rapidly declining. To make ends meet, many are turning to their retirement savings as a last resort.
This leads to a tough question:
Should I tap into my 401(k), even as it loses value and may not recover in time for retirement?
But there’s a bigger issue at play.
Why is the 401(k) the primary method we rely on to fund our retirement?
Even Ted Benna, the man who originally designed the 401(k), has expressed deep regrets about opening the door for Wall Street to profit off America's retirement savings. In his own words, the system no longer serves the people it was meant to protect.
It’s time to rethink our approach to the future and ask if traditional, all-or-nothing retirement models still make sense.
The Father of the 401(k) and the retirement plan