Thanksgiving and 401(k)

Thanksgiving Day was first proclaimed a US national holiday in 1863 by President Abraham Lincoln. It dates back to 1621 when English pilgrims celebrated the first Thanksgiving to express gratitude for their first successful harvest on American soil. Canada added a similar holiday in 1957 but only in America do we devote a day to give thanks.

Our 401(k) system is also exceptional. Other countries have defined contribution programs but only here in the US has a substantial proportion of the employer community voluntarily agreed to act as fiduciary and investment management overseers, monitoring plan fees, selecting quality investment alternatives, making very significant employer contributions, providing financial education, and encouraging and facilitating savings through payroll deductions. This has enhanced the retirement security for tens of millions of American workers and dramatically increased retirement assets in capital markets.

As an American there are so many things to be thankful for this Thanksgiving. 401(k) is one of them.