When the 401(k) was introduced in the late 1970s, it wasn’t meant to replace pensions—it was meant to supplement them. Born out of a little-noticed section of the Revenue Act of 1978 (Section 401(k)), it allowed employees to defer compensation tax-free into a retirement account. The idea was simple: give workers a tax break for saving, and employers a lower-cost benefit option.
The promise of rich returns has lured legions of investors to pile into equities at new highs. But what few fully appreciate is the peril intrinsic to entering at the summit. Invest at the top — when valuations are stretched, momentum is overbought, and sentiment is euphoric — and you court asymmetric risk: modest upside, potentially dramatic downside. This essay dissects the dangers of investing at market peaks, illustrates them with history and data, and offers frameworks to mitigate the hazard.
Prices are climbing everywhere—at the grocery store, the gas pump, the housing market, and even streaming subscriptions. For millions, it feels like the cost of living is accelerating faster than paychecks can keep up. Beneath this daily frustration lies a complex web of structural shifts—some temporary, others likely permanent—that are reshaping the global economy. Understanding what’s truly driving these increases is essential for consumers, investors, and policymakers alike.
Investors are on edge as 2025 unfolds, facing a global economy teetering on the brink of significant disruption.
As the U.S. ramps up tariffs in a bid to protect domestic industries and combat foreign trade imbalances, there’s an overlooked casualty: the retiree on a fixed income. While tariffs may seem like a geopolitical tool wielded far from home, their impact is increasingly personal—especially for older Americans who can’t just “earn more” to keep up.