Another Small Crack in the Retirement System
Congress looks for further ways to turn our retirement system to a general savings system.
Congress is on the verge of adding yet another way to take money penalty-free out of a retirement account. It’s not that this provision is particularly terrible or problematic, but it adds to a fundamental problem with our system: Employers and advisors usually act as though we have a retirement system. We don’t. We have a savings system, because the money can be--and is--used for a variety of other, nonretirement purposes.
Specifically, Congress is expected to eventually pass the provisions of the H.R. 1994 - Setting Every Community Up for Retirement Enhancement Act of 2019, or SECURE. Among a laundry list of items is a provision that would allow people to take up to $5,000 out of an IRA or defined-contribution plan for expenses for the birth or adoption of a child. After taxes, this will probably come to closer to $4,000, although that depends on the participants’ income and marginal tax rate.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.