Father of the 401(k) Says the System Is Broken—but Fixing It Could Help You Buy a House

Ted Benna, widely hailed as the father of the 401(k) retirement plan, wants to shake up the system he helped to create, to help those who are benefiting from it least. “We've reached a point now where many middle- and low-income employees can't afford to have money taken out of their paycheck,” Benna explained while speaking to Realtor.com® by phone.In the current economy, he noted that more money than ever is needed to go toward essentials like food, education, healthcare, and, of course, homes.“We have a very large segment of a population that has no assets. They've never had an account that's been invested for their benefit.”His solution? A new savings plan he’s dubbed Radish. The plan would function as an employer-funded incentive program that lets companies deposit money into an account for workers who hit their performance goals on a yearly, monthly, or even weekly basis. It's not a replacement for the 401(k), but rather a supplement, which would benefit both employee and employer.The idea presents a fascinating dichotomy, especially for prospective homebuyers attempting to balance saving for retirement and saving for a down payment. Could Benna’s latest idea be a new pathway...