This is part 2 in a series covering the explanation of why most Americans share the same concerns over their personal wealth management. Part one covered the history of the 401k and the fact that it was never intended to be the sole source of an individual’s retirement income. Read the post on the four most common concerns of asset protection strategies.
Since 1980 personal wealth management by accumulation has increased. The 401k has been massively successful, but more for the financial services industry than the average investor concerned over their personal wealth management. By exploiting tax code to make it easy for employees to capitalize on their employers’ deferred income incentive the financial services industry has grown from just 4.9% of GDP in 1980 to over 8% of GDP in 2011. This number continues to climb every year, and examining the source of this increasingly large portion of the United States economy we find that the largest growth has been associated with fees accumulated in exchange for these servicesRead More