GOVERNMENT IS DOING AND SETTING
UP THE NEW TAX PLAN, IF THEY END
UP SEEING THE MONEY COMING HOME
IT HAS SERVED ITS PURPOSE.
DAGEN: YOU MENTION 401(K) PLANS.
WHEN YOU SAID THAT BEFORE THIS
SEGMENT STARTED, 55 MILLION
MILLION AMERICANS IN 401(K)
PLANS, CLOSER TO 60 MILLION
PEOPLE PARTICIPATING.
MORE THAN HALF OF AMERICANS OVER
THE AGE OF 30 CONNECTS YOU WITH
FOUR OR ONE K. PLAN IS.
ONLY ONE THIRD HAS ONE ACCORDING
TO THE SURVEY DONE.
ONE OF THE ISSUES WE TALK ABOUT
ARE PEOPLE MISSING OUT ON THIS
RALLY AND POLITICALLY YOU HEARD
IT FROM JUAN WILLIAMS, PEOPLE
ARE NOT PARTICIPATING IN THE
STOCK MARKET RALLY.
DO YOU FEEL THAT IS THE CASE AND
WHAT DO YOU MAKE OF THIS?
>> SMALL COMPANIES ARE
RESPONSIBLE FOR GDP HERE IN THE
U.S.
NOT ALL SMALL COMPANIES HAVE
RETIREMENT PLANS.
FIRST AND FOREMOST IF THEY CAN
GET BEHIND AND INCENTIVIZE
COMPANIES TO ENCOURAGE AND START
UP RETIREMENT PLANS THAT WOULD
BE GREAT.
NUMBER TWO THEY ARE THINKING
ABOUT RETIREMENT.
I SIT WITH THEM EVERY YEAR AND
SAY WE'VE GOT A GENEROUS PROGRAM
IN 401(K).
PLEASE PARTICIPATE.
IF YOU TAKE IT OUT OF YOUR
PAYCHECK.
WE NEED TO DO A BETTER JOB IN
THE U.S. OF EDUCATING FIRST AND
FOREMOST AND SECOND MAKING SURE
PEOPLE STEP UP AND PARTICIPATE
BECAUSE THE LITTLE GUY STARTED
EARLY MEANS A LOT LATER.
TRENDY SOMEONE WAS ADDED TO
STAFF HERE AND I SAID HEALTH
INSURANCE IS AWESOME, BUT YOU
REALLY GOT A PARTICIPATE IN THE
401(K) BECAUSE THE MATCH YOU GET
FROM THE COMPANY IS FREE MONEY.
IT IS A BONUS THAT YOU OTHERWISE
WON'T GET UNLESS YOU PARTICIPATE
>> IF YOU ARE OLDER, YOU DOESN'T
MEAN IT'S TOO LATE.
THEY BUMPED THE MAXIMUM YOU CAN
PUT IN FROM 18,000 TO 18,500.
DAGEN: THAT IS A LOT OF MONEY
YOU COULD POTENTIALLY STOCK AWAY
EVERY YEAR.
THAT IS WHY I LOST MY MIND WHEN
THE REPUBLICANS WERE THINKING
ABOUT TINKERING WITH THE
CONTRIBUTION LIMITS TO 401(K)
PLANS AND THEY HAVE SOME
COCKAMAMIE REASON THAN THEY WERE
LIKE WHY WERE YOU TALKING ABOUT
THEM ON THE AIR?
IT DIDN'T HAPPEN.
SOMEBODY WAS THINKING ABOUT IT.
>> SO MANY YOUNG PEOPLE
ACCORDING TO THE LATEST
STATISTICS AREN'T EVEN AWARE OF
WHAT A 401(K) IS GOOD OLDER
AMERICANS COME TO PRE-RETIREES,
THIS IS THEIR BREAD AND BUTTER.
THEY ARE VERY MUCH AWARE.
I HADN'T LOOKED AT MANY MONTHS I
LOOKED AT IT THE OTHER DAY AND I
SAID WOW.
BUT I'LL ASK YOU.
I GOT A LITTLE SCARED.
DO YOU KEEP THIS MONEY?
>> YOU HAD THAT FEELING MEANS
YOU ALLOCATED THE RIGHT WAY.
UNFORTUNATELY, LET PEOPLE INVEST
IN 401(K) PLANS DON'T ALLOCATED
TO EQUITIES.
THEY WORRIED ABOUT THE MARKET SO
THEY'LL PUT IT IN A SHORT-TERM
BOND FUND OR SOMETHING LIKE
THAT.
DAGEN: THE HEADLINES OVER AND
OVER AGAIN THAT THE BOND BULL
MARKET THAT ARE GOING ON FOR
MORE THAN THREE DECADES IS OVER.
WHEN YOU TALK ABOUT STOCKS, ARE
YOU GOING TO PUT IT IN
LONGER-TERM BOND?
THOSE ARE ARGUABLY MORE
OVERVALUED THAN STOCKS.
>> THE EARLIER PARTS OF THE
STOCK MARKET RUN WERE DRIVEN BY
INSTITUTIONS BY THE CENTRAL
BANKS THEMSELVES.
ARE YOU SEEING MORE AND MORE
INDIVIDUALS PARTICIPATING IN
THIS?
IF SO, WHAT SIGNAL IS THAT?
IS THAT THE LATE STAGES ARE THE
MIDDLE STAGES?
>> AS FAR AS INDIVIDUAL
INVESTORS YET, THEY STILL
REMEMBER THE FINANCIAL CRISIS
AND HOW IT HAS BEEN PERSONALLY.
HOWEVER THEY FEEL MORE
CONFIDENT, BUT NOT THAT IT'S TOO
RISKY AT THIS POINT.
THEY FEEL MORE CONFIDENT MAYBE
BUYING A CAR FOR THE FIRST TIME
OR HIRING THAT EXTRA EMPLOYEE
THEY HADN'T THOUGHT ABOUT HIRING
IN A WHILE.
SO THAT IS GOOD.
THE KEY IS MAKING SURE AT THIS
POINT IN TIME WHEN YOU FEEL
GOOD, CUT DOWN ON DECK, AND GET
RETIREMENT SQUARED AWAY IN
REGARDING ALLOCATION,
PARTICIPATE IF YOU GO THROUGH
THE WHOLE PROCESS BEEN A PART OF
IT, INVEST FOR THE LONG TERM.
TRAIN TO IOWA TO SAY THIS, IF
YOU OWN STOCKS FROM YOU ON A
PIECE OF THE CORPORATION IN THE
GREAT AMERICAN COMPANY.