He was a professor at the Walter Cronkite School of Journalism and Mass Commun… Bloomberg’s Aaron Brown is today’s guest on “5 questions to…”. The former boss of a $226-billion investment firm, Brown is a writer for Bloomberg and author of several books, including “The Poker Face of Wall Street”, which was named one of Businessweek’s top 10 paperbacks for summer reading in … Aaron Brown is a former managing director and head of financial market research at AQR Capital Management. Aaron Brown is a former managing director and head of financial market research at AQR Capital Management. Some employers offer 401(k) with fees equal to or even lower than taxable alternatives, but others are stuck around the 3.5% level.Now that 401(k)s have become the primary source of retirement savings for the middle class working in the private sector, we should restore the large tax incentive and bring fees into line with taxable investment standards. Aaron Brown & Associates was founded in 2003. But investors also have the option of using tax-efficient investments taxed mainly at capital gains rates at time of withdrawal. He is the author of "The Poker Face of Wall Street." View all articles written by Aaron Brown. One easy change is to allow workers to roll 401(k) funds over to self-directed IRAs at any time (now they can do it only when they leave a job). We have been slowly raising the temperatures on 401(k)s for 40 years, and we’re nearing the point that they no longer make sense for workers, except those fortunate enough to be offered the best plans or good employer matches. That’s the last thing Americans need.America’s big cities were beginning to struggle even before the pandemic led some residents to flee.If some areas get immunity against Covid-19 sooner than expected, the world still faces huge challenges. Let’s run through college basketball’s quant bracket.A model published by the World Health Organization in 2017 that estimates the economic fallout from pandemics should give investors comfort.The securities are hardly a gimmick stunt that divert scarce health-care dollars to financial markets.Pure speed is no longer the only thing that matters. Two simple ideas are to make new 401(k) contributions and accumulated returns from them tax-free when withdrawn in retirement by below-median-income households, and to exclude FICA payroll deductions as well as income tax from 401(k) contributions.
Forget underdogs and Cinderellas. The inherent extra return participants enjoyed for many years has almost disappeared because of changes in tax laws and high fees. Reducing taxes on 401(k)s will cost the government money, but it could be a good investment if it results in retirement security for more middle-income households. He was a longtime reporter for ABC, the founding host of ABC's World News Now, weekend anchor of World News Tonight and the host of CNN's flagship evening program NewsNight with Aaron Brown. Benefits consultant The tax advantage of a 401(k) depends on four factors, all of which have changed dramatically since 1980 to the detriment of 401(k)s. For a median-income married couple with two children:Making some reasonable assumptions about a worker with 30 years to retirement, the 1980 version of the 401(k) tax deferral was equivalent to an additional investment return of 9.2% per year, an extraordinary incentive to save for retirement, even without an employer match. In 2020, that’s shrunk to perhaps 1.5% in a typical 401(k), and 0.5% outside. In 2020, there is no tax advantage remaining to the 401(k).So in 1980, the government offered a huge tax savings to encourage retirement savings, while today it offers little or no benefit. Photographer: Bloomberg Aaron Brown is a former managing director and head of financial market research at AQR Capital Management. He may have a stake in the areas he writes about. SECTOR Understanding why equities fell so far, so fast is the key to understanding the way forward.Retirees will have to accept sharply reduced benefits that are more in line with what they would get from Social Security and Medicare. He is the author of "The Poker Face of Wall Street." He is the author of "The Poker Face of Wall Street." He may have a stake in the areas he writes about. The day-to-day moves in probability are too small to support an almost 50 percentage-point drop since March in Trump’s chances of winning.The inherent extra return participants enjoyed for many years has almost disappeared because of changes in tax laws and high fees.