I had a chance to interview Jack Towarnicky this week (see “Exclusive Interview with Jack Towarnicky: Child IRAs will make ‘Middle Class Millionaires’,” FiduciaryNews.com, August 16, 2016). Jack is full of great ideas and enthusiasm. (Read the article and see what he says is at once the “most important concept” and “most misused/misunderstood aspect” of behavioral finance when it comes to 401(k) plans.) One phrase that he used really stuck in my head. Towarnicky referenced what he termed “middle-class millionaires.” That got me thinking.
Remember all those bank commercials when IRAs first appeared? “If you save $2,000 a year, your money will compound itself exponentially and – voila! – you, too, can become a millionaire!” I remember those ads. They had about as much credibility as those crazy “If I had a million dollars” lottery commercials – as in, they had no credibility whatsoever.
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