Young Research & Publishing Inc.

Investment Research Since 1978

Disclosure

  • About Us
    • Contributors
    • Archives
    • Dick Young’s Safe America
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Retirement Compounders®
  • Free Email Signup

You Need to Know that Changes are Coming to Your Savings Plan

August 13, 2018 By E.J. Smith

By simon jhuan @ Shutterstock.com

Congress is actively seeking ways to encourage more small businesses to use retirement savings plans. That’s a good thing for America’s savers. But be wary that the bill may also encourage greater use of annuities, which I have warned readers about repeatedly (see here, here, and here for a sample). The bill will also encourage greater use of 401(k)s, which like annuities, can also come bearing hefty fees. For many savers too, borrowing against the money in their 401(k) account can be a tempting but risky option.

Richard Rubin and Anne Tergesen report on the bill in The Wall Street Journal:

Lawmakers are starting with a bipartisan bill that would encourage more small employers to offer retirement savings plans and make it easier for companies to offer annuities that turn workers’ savings into a guaranteed annual income. If passed, the measures would comprise the most significant alterations to 401(k) plans since 2006, when Congress made it easier for employers to enroll workers automatically and invest money in funds that shift focus from stocks to bonds as people age.

The bill, known as the Retirement Enhancement and Savings Act, or RESA, faces a slim congressional election-year calendar and partisan tensions over tax policy. However, the bill has garnered support from financial services companies and AARP, the advocacy group for older Americans, which says “RESA is an important step to improving retirement policy.”

“It is something that could actually move the needle on retirement security,” said Michael Kreps, a principal at Groom Law Group, who represents financial services companies and 401(k) plan sponsors.

In the Senate, RESA is sponsored by the Finance Committee’s chairman, Orrin Hatch (R., Utah), and its top Democrat, Ron Wyden of Oregon. The Finance Committee unanimously approved a version of RESA in 2016, though it hasn’t advanced beyond that stage.

Saving more of your money is almost universally a good thing for your future. But you need to be aware of the possible changes in retirement savings law coming your way, and be prepared to fully investigate any investment products your employer may offer you.

Originally posted on Yoursurvivalguy.com.

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • Beware the Coming 401(k) Annuity Storm
  • Your Retirement Life: Parents, do You have an Investment Plan?
  • The Chinese are Coming
  • Author
  • Recent Posts
E.J. Smith
E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris.

Please get in touch with E.J. at ejsmith@youngresearch.com

Click here to sign up for my free monthly Survive & Thrive letter.
Latest posts by E.J. Smith (see all)
  • Your Retirement Life: Adventure Awaits - February 3, 2023
  • Early Advice from Her Dad on Tipping at Charlie Trotter’s - February 2, 2023
  • Reagan’s America Remembered by Your Survival Guy and More - February 1, 2023

Search Young Research

Most Popular

  • Tom Brady Retires, Again. Should You?
  • Suddenly, Holding Cash Looks Good Again to Many
  • What Happens if the "Fed Put" Is Over for Good?
  • Are the Realists Winning the Debate over the Future of EVs?
  • Warren Miller: If You Don’t Do It This Year, You’ll Be…
  • Reagan's America Remembered by Your Survival Guy and More
  • Vanguard Wellesley (VWINX) vs. Wellington (VWELX): Which Fund is Best?
  • Biden Administration Destroying Retiree Fiduciary Protections
  • What Kind of Life Are You Investing For?
  • CATO: Global Freedom Is in Sharp Decline

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Could this Be the Vanguard GNMA Winning Edge?

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

RSS The Latest at Richardcyoung.com

  • EVs and Human Trafficking/Modern Slavery
  • USA and Russia: A Global War for Resources?
  • TERROR TACTICS: Globalists Use Fear to Demand Compliance
  • Your Retirement Life: Adventure Awaits
  • Are Flights About to Get MORE Expensive?
  • Dick Young: Learn from Hillsdale College Online
  • Is Amazon’s Slowdown a Warning?
  • Chinese Spy Balloon Traveling Over Sensitive U.S. Sites
  • Breaking News: Reform at New College, Sarasota, Florida
  • German Opposition Leader Denounces the Country’s “Insane Drunkenness about War”

RSS The Latest at Yoursurvivalguy.com

  • Your Retirement Life: Adventure Awaits
  • Zumwalt-Class Guided Missile Destroyers to Get Hypersonic Weapons
  • Early Advice from Her Dad on Tipping at Charlie Trotter’s
  • Treasury Bonds Ready to Rock and Roll
  • Survive and Thrive February 2023: 4 Life Changing Words: “You Should Try This”
  • Tom Brady Retires, Again. Should You?
  • Reagan’s America Remembered by Your Survival Guy and More
  • America’s Unprecedented Debt Problem
  • Iran’s Ballistic Missiles Could Give Russia the Edge in Ukraine
  • What Kind of Life Are You Investing For?

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Copyright © 2023 | Terms & Conditions

 

Loading Comments...
 

    loading Cancel
    Post was not sent - check your email addresses!
    Email check failed, please try again
    Sorry, your blog cannot share posts by email.