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During a debate on the Federal budget, Herbert Humphry, the late, great Senator from Minnesota, said, “A billion here, a billion there, and pretty soon it starts to add up.” The same thing can be said for today's 401(k) program, except you need to change the B to a T.

According to the Bureau of Labor Statistics, there are 7,834 active 401(k) plans with 90 million participants. The value of their combined investments is in excess of $12 trillion. That's a number twice the size of the federal budget, and number that has the full attention of Wall Street’s bean counters.

What is unique about the 401K program is that it requires the individual investor to make their own investment decisions. But their choices are limited to a menu of mutual funds selected by a broker who is compensated by the funds they place in the menu. In this episode of my podcast, I will provide data on how the 401(k) pie is currently being distributed.

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