Marketplace recently reported that, “President Obama is considering a plan that would require companies to open up and contribute to 401ks for their employees.” Kai Ryssdal recently talked with “Duke professor and behavioral economist Dan Ariely about why Americans have such a hard time saving money.”
What do you think about required 401ks? Are they good, bad or ugly?
{ 2 comments… read them below or add one }
Wow, fantastic interview. It’s nice to see a positive economist.
I am not a fan of anything that falls under the category of “let’s have the government save us from ourselves and our poor choices.” I would like to see President Obama instead make personal finance education mandatory in public middle and high schools. Middle school kids should see the power of compound interest and investing through basic charts. In high school, added to this lesson should be an amortization schedule and a lesson on interest in mortgage payments. There should be a standardized test section on these concepts that you have to pass to graduate from high school.
It would educate people and thus empower them to make their own financial choices. Then there would be no excuse not to save for retirement. Besides, the real “secret” of investing in mutual funds and IRAs is to start early. Time is mightier than the dollar when it comes to compound interest. Thanks for the article, Tammy!
Thanks for leaving a comment. I totally agree. I tend to be really conservative when it comes to investing and saving. I don’t want to be told that I have to my money in a 401k, when I’d rather invest those funds elsewhere. Like you said the key is empowering people to make their own financial decisions.