The future of the financial system will be smaller, leaner, low-cost, and less complex (thank goodness!). Currently, the vast majority of retirement plans (403b, 401k, 457b*) are big, fat, high-cost and way too complex. Retirement planning should be about as difficult to discover and learn as our first day on the job. For teachers it should be a lot easier than our first year in teaching.
Chick here for all of Mr. Bogle’s comments written by Dan Weil.
*Los Angeles Unified School District has a low-cost 457b plan that would make Mr. Bogle smile! For LAUSD employees the future is here! See the fund line up below. The four bold Vanguard choices is a simple starter diversified low-cost portfolio. This selection of funds includes bonds and domestic and international stocks (sans emerging markets).