JACK BOGLE: A Financial System Train Wreck Is Coming
Sept. 2, 2012
Vanguard Funds founder Jack Bogle was recently interviewed by USA Today.
The conversation was largely about the ETF industry, which he thinks has gotten out of control.
However, Bogle’s biggest concern was that Americans might not be saving enough for retirement.
From USA Today’s John Waggoner’s interview:
Q. What worries you most going forward?
A. The coming train wreck in the financial system. A 401(k) is a thrift plan trying to be a retirement plan. It was never designed to be a retirement. To be a retirement plan, you have to keep putting money in and can’t be allowed to take money out, and you can’t be allowed to borrow from it. And if you change jobs, you should be able to take it with you to your new job. The reality is that probably 70% of the citizens of this country will rely entirely on Social Security.