"Isn't IPOing the retirement plan?" is the snap reaction from most startup people on this topic. That reaction feels socially mandatory; you're supposed to believe in the superposition that startups are insanely hard/risky and that your success is practically in the bag.
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Here's what happens: 1) Employers are insufficiently attentive to contents of plans 2) Retirement account providers can get kickbacks from mutual funds for steering assets 3) The most expensive funds can afford the largest kickbacks 4) Not "Employee has best possible outcome"
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Startup founders are in a much better position than most employers on this score, because they tend to be relatively numerate and because they don't have the principal/agent problem early in the life of the company. It is easy to keep doing the right thing; much harder to start.
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Anyhow: the technology of money is endlessly fascinating. If there are particular business-adjacent parts which seem mysterious to you, drop us a line; we love ideas for new things to write about.
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End of conversation
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Do you think the lack of low-cost index funds in 401Ks is so that direct costs are low but the companies make up on the management fees?
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