Interesting article, and wonderful thoughts so far!
I don't think the 401(k) has failed. Far from it, in fact. However, that doesn't mean that it's fool-proof either. Not all investment firms offering 401(k)s are created equal, not all employers pick the best firms for their employees, and not all employees really know what they are doing with the program.
As such, I also don't think it's entirely fair for the article to pin the blame on the program itself nor the stock market's recent lackluster performance.
Still, the result speaks for itself eh? The article seems to suggest that a better alternative is the government TSP. Hmm. Maybe. I actually don't dislike the TSP, especially if we do get tax credits as an alternative to employer matching.
But 401(k)s can be every bit as good as the TSP. For example, my current 401(k) company is Fidelity, and their lifecycle funds are just as competitive as TSP's counterparts.
For me, the bottom line is really the quality of the program itself, and not so much who wants to manage it. I have concerns about both sides really (such as the wisdom of nationalizing TSP and essentially putting a 800lbs government gorilla in the stock market), but if the program is well-designed and well-managed, I really don't care if I am investing through a 401(k) or a TSP.
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