We continued our conversation about personal finance.
Parts 1 and 2 can be found here.
Here we discussed the inherent shortcomings of 401(k) accounts, and why the New School’s Teresa Ghilarducci has been called the “Most Dangerous Woman in America.†I lament the public sector’s failure to properly finance its retirement obligations, which undercuts the political case for professionally-managed defined-benefit pensions.
We also discussed how the current system of tax-favored savings vehicles favors the affluent. I discuss my favorite subject: Me. We discussed how my own family righted our financial ship after a crisis using strategies that less-affluent Americans could not realistically emulate. . We tend to judge people as individuals when they respond to adversity. Yet the individuals and families most able to weather such crises are often those in the most advantageous situations.