Part 3/10:
A critical turning point occurred in the 1980s, during an extensive bull market that lasted into the late '90s. This period was marked not only by soaring stock prices but also a significant shift in how retirement was funded. A small tax code tweak in 1978, Section 401(k), inadvertently led to the near obliteration of traditional pensions. This change allowed employees to self-manage their retirement funds, transitioning the responsibility to individuals rather than companies.
By 1990, nearly 19 million Americans were utilizing 401(k) plans, with $380 billion in assets. The traditional pension system crested, and Americans began to view investing as both an opportunity and obligation in securing their financial future.
The Boom of DIY Investing and the Internet Era