The 401(k) system promised financial security, but the numbers tell a different story. In this second part of our series, Hans and Brian delve into Fidelity's latest retirement savings data, revealing why the average American's retirement plan may be setting them up for failure.

From baby boomers with $250,000 balances to millennials drowning in target date funds, we break down what these numbers mean for your financial future. The math might look clean on paper, but real life has other plans – and the results are sobering.

Using actual data from millions of accounts, the hosts expose the gap between retirement planning promises and reality. When 25% of Gen X workers have loans against their 401(k)s and the average retiree faces a life of financial scarcity, it's time to question whether this system works for anyone except the financial industry selling it.

The Reality Check: Average Balances Don't Add Up The data is stark: baby boomers average $250K in 401(k)s and $250K in IRAs. Using the sacred 4% withdrawal rule, that's just $20,000 annually in spendable income after taxes. Brian and Hans walk through why even the "successful" savers are facing potential poverty in retirement, especially when you factor in today's cost of living.

The Target Date Fund Trap A staggering 70% of millennials are invested solely in target date funds. These funds create continuous taxable events through portfolio churning while charging excessive fees. The hosts explain why "set it and forget it" might be the worst advice young workers are receiving.

The Loan Problem Nobody Talks About One in four Gen X workers have outstanding loans against their 401(k)s, effectively disrupting the very compounding they were promised. This isn't a character flaw – it's proof that life happens, and when it does, people need access to their money. The hosts explore how this reality destroys the mathematical assumptions underlying retirement planning.

Why the 10x Rule is Setting You Up for Failure Fidelity recommends having 10x your income saved by age 67, but their own data shows the average person has saved for someone making just $50,000 annually. Hans breaks down the math: even if you hit this target, you're planning for a lifestyle of scarcity, not the retirement you actually want.

➡️ Chapters:

00:00 - Opening thoughts on 401(k) regrets and savings rates

01:00 - Part 2 begins: Fidelity's retirement data breakdown

04:00 - Average balances by generation - the sobering reality

07:00 - Hans: "I don't have a hint of regret" about avoiding 401(k)s

08:00 - Historical context: Why the 55-70 age group data matters

11:00 - The savings vs. investing language problem

16:00 - Traditional vs. Roth: Why 85%+ are in taxable accounts

20:00 - The outstanding loan crisis across generations

24:00 - Permission to spend: Breaking the scarcity mindset

28:00 - Target date funds: The "appalling" trend

34:00 - The airline industry comparison

38:00 - How to increase your savings rate

43:00 - The 10x rule exposed: Planning for poverty

48:00 - Final thoughts: Why this model is an "abject failure”

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