Some politicians are obsessed with the evils of Wall Street as if our financial markets are the enemy of the average American.
Turns out many average Americans have a big stake in the success of the enemy. That six trillion dollars mention below is invested mostly in stocks and bonds; the life blood of Wall Street. Without the growth in value of those investments few Americans have a chance for a financially sound retirement.
And by the way, that goes for the lucky Americans who still have a traditional pension.
Profits are not bad. Profits don’t go in the pocket of CEOs. Profits drive the price of a stock up, dividends add to your 401k returns and make funding your pension affordable.
So before you jump on the anti-corporate America bandwagon, better check your 401k balance and ask yourself how you will meet your retirement goals in the years ahead without strong profits and a rising stock market.
Defined contribution (DC) retirement plans are the centerpiece of the private-sector retirement system in the United States. More than 90 million Americans are covered by DC plan accounts, with assets now in excess of $6.5 trillion.
Source: Vanguard 2015
What’s that, you don’t have your retirement savings invested in the stock market, but they are secure with fixed income investments? Good luck with that🤑😰