And no, it’s not the kind you think.
Obviously, where government and financial services are concerned, you can never have too much graft in the system. Thus our nation’s Smartest Finger Waggers have determined that the time has come to protect our 401(k) plans not from Wall Street, nor from shady CEOs … but from ourselves.
This, of course, will cost money.
As Time tells us, because so many folks take loans against their 401(k)s and then later default on those loans, we SIMPLY MUST DO SOMETHING to stem the tide — nay, the FLOOD — of money “leaking” from professionally-managed, employer-sponsored retirement saving plans.
Well, heavens-to-Betsy! Thirty-seven billion dollars? Why, this sounds like a great opportunity to introduce more “loan insurance” into the system!
We’re told that presumably, such “insurance” would be paid for by only those who borrow against their 401(k) plans, and not the rest of us. Color me skeptical. When a new opportunity to skim fees from the masses pops up, you can bet the “safety” it provides will cost a bundle, cumulatively … and they’ll be sure to spread that cost over as many
hapless marks investors as possible.