Aug 30, 2021
Ted Benna, the Father of the 401K Covers It All – History, Pensions, Fees & More
- BRT S02 EP 35 (82) 8-29-21
What We Learned This Week
- History of the 401K
- Pension, Thrift Plans & Mutual Funds
- Golden Handcuffs - stuck with a Co.
- ERISA & Pension Benefit Guaranty Corp.
- Tax Code 1978 created the section for the 401K
Guests: Ted Benna, Benna 401K
Ted Benna, Father of the 401K, has worked in pension and retirement benefits industry for 60 years, and literally wrote the book on the 401K. He was a pioneer in the early 80s in designing the early 401K Plans, and then getting them approved by the IRS to be the model still used today.
Books:
401K Forty Years Later (2018) – History of the 401K
401K & IRA for Dummies Updated Version (2021)
Notes:
History of the 401K – from inception to now a $10 Trillion Industry
What Companies used to offer employees – Pensions, Thrift Plans, etc
How the Good Old days were not so Golden as Pension Plans were often underfunded
Golden Handcuffs – had to stay at a company 30 years before your were eligible for the pension
ERISA 1974 – why it was created, and how it killed off Pension Plans
PGBC - Pension Benefit Guaranty Corp. – what it does to protect your Pension (sort of)
Tax Code 1978 created the section for the 401K
How Ted Benna created the model for what is now the modern day 401K Plan – employees defer part of their salary, plus Employers give a partial match
Mutual Fund industry exploded in the late 80s to early 90s with retirement plans and 401Ks
Social Security – you get taxed on that too
401K Fees – hidden and costly fees of 2 – 3%
Ted tells you options for small business owners to setup retirement funds that are easier than 401ks (less paperwork) and have minimal fees (.5 %).
Investing Topic: https://brt-show.libsyn.com/category/Investing-Stocks-Bonds-Retirement
Retirement Topic: Here
Link to Taxes Show on 10/31/2021 w/ Denver: Here
Link to Offense / Defense Show on 6/6/2021 w/ Denver: Here
Thanks for Listening.
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