Ted Benna was working for an insurance firm outside Philadelphia about 40 years ago when he figured out how to use an obscure provision of a 1978 tax law—section “401(k)”—and turn it into an employee retirement account for contributions from both employees and employers. He designed it as a fringe benefit for banks that wanted to save taxes when they transferred bonuses to employees. In the years since, however, it’s grown into much more—it’s now the dominant way that Americans save for retirement, helping them collectively amass trillions.
Today, he’s proud that his invention has helped millions of people prepare for retirement. But the plain-spoken Pennsylvanian now says that the accounts have an “ugly” side—primarily that they have made mutual fund companies and investment managers rich off fees that grew way too high. He’s now on a crusade to design simpler plans with lower fees that put money in the pockets of future retirees, not money managers.
Ted Benna is commonly referred to as the “father of 401(k)” because he created and gained IRS approval of the first 401(k) savings plan. He has received many citations for his accomplishments including:
- 2001 National Jefferson Award recipient for Greatest Public Service by a Private Citizen,
- 2001 Player of the Year selected by Defined Contribution News,
- one of eight individuals selected by Money Magazine for its special 20th Anniversary Issue Hall of Fame,
- selected by Business Insurance as one the four People of the Century,
- one of ten selected by Mutual Fund Market News for its special 10th Anniversary Issue Legends in Our Own Time and
- Lifetime Achievement Award by Defined Contribution News 2005.
Ted Benna will share why the 401K was never intended to fund a full retirement for people but was only one component to it and that the current form and structure of the 401K needs a makeover.
Ted is a business owner and real estate investor, two vehicles in which he creates and receives income from.
As you know, I am not a proponent of the 401k, in fact, I am a very big critic of the 401K. I don’t regard it as a savings vehicle, it is actually an investment vehicle if you look at the definition of savings and investing, you do not have control over your money, it is very high in fees as Ted has pointed out, and it differs taxes 30-40 years into the future. Defers means postpone.
As you know as listeners of the cashflow ninja, this is not an echo chamber just of ideas and investments I support, but a platform to share many different ideas and investments to help educate my audience.
I really enjoyed my conversation with Ted Benna and he brings a great perspective to this vehicle and also shares a wealth of knowledge and his experience.
Interview Links:
Subscribe To Our Weekly Newsletter:
The Wealth Dojo: https://subscribe.wealthdojo.
Download all the Niches Trilogy Books:
The 21 Best Cashflow Niches
Digital: https://www.cashflowninjaprograms.com/the-21-best-cashflow-niches-book
Audio: https://podcasters.spotify.com/pod/show/21-best-cashflow-niches
The 21 Most Unique Cashflow Niches
Digital: https://www.cashflowninjaprograms.com/the-21-most-unique-cashflow-niches
Audio: https://podcasters.spotify.com/pod/show/21-most-unique-niches
The 21 Best Cash Growth Niches
Digital: https://www.cashflowninjaprograms.com/the-21-best-cash-growth-niches
Audio: https://podcasters.spotify.com/pod/show/21-cash-growth-niches
Listen To Cashflow Ninja Podcasts:
Cashflow Ninja
https://podcasters.spotify.com/pod/show/cashflowninja
Cashflow Investing Secrets
https://podcasters.spotify.com/pod/show/cashflowinvestingsecrets
Cashflow Ninja Banking
https://podcasters.spotify.com/pod/show/cashflow-ninja-banking
Connect With Us:
Website: http://cashflowninja.com
Podcast: http://resetinvestingsecrets.com
Podcast: http://cashflowinvestingsecrets.com
Podcast: http://cashflowninjabanking.com
Substack: https://mclaubscher.substack.com/
Amazon Audible: https://a.co/d/1xfM1Vx
Amazon Audible: https://a.co/d/aGzudX0
Facebook: https://www.facebook.com/cashflowninja/
Twitter: https://twitter.com/mclaubscher
Instagram: https://www.instagram.com/thecashflowninja/
TikTok: https://www.tiktok.com/@cashflowninja
Linkedin: https://www.linkedin.com/in/mclaubscher/
Gab: https://gab.com/cashflowninja
Youtube: http://www.youtube.com/c/Cashflowninja
Rumble: https://rumble.com/c/c-329875
Share This
Related
857: Andy Tanner: Stock Market Cashflow
My guest in this episode is Andy Tanner. Andy is a renowned paper assets expert, successful business owner and investor known for his ability to teach key techniques for stock options investing. He serves as a coach to Rich Dad’s Stock Success System trainers and as the Rich Dad Advisor for Paper Assets. As a…
856: Rob Connolly: How To Invest In Professional Athletes
My guest in this episode is Rob Connolly. Rob is the Co-Founder and CEO of Finlete. With a background in alternative investments, sports tech, startups, and venture capital, Rob has a proven track record of success in the tech industry. He has founded two tech startups and led them to successful exits through bootstrapping. Links:…
Bonus: Francis Hunt: Why Gold & Bitcoin Will Soar In Turbulent Times
My guest in this episode is Francis Hunt, the originator of the HVF Method: a unique, technical approach to pattern trading all markets. With 30 years of trading experience and trying all traditional methods, he has distilled technical analysis down to a specific methodology applicable to all markets and timeframes. The HVF Method is all…
