Today and for the next several months, this subcommittee will hold a number of hearings to determine how to make sure American workers and retirees can take full advantage of those opportunities. Part of that will consist of personal opportunities for individual retirement savings. Technology and the demands of a global market have fueled tremendous innovations in this area. To most people in 1974, personal savings meant a bank account. Now it means IRAs, Roth IRAs, annuities, mutual funds, and a whole range of investment products that go well beyond what was available to the average American 25 years ago.
Equity investment can represent great opportunities but it can represent risks as well.
And we re seeing our economy change right before our eyes. Our largest companies used to be manufacturing firms that had taken decades to develop and had workers and facilities throughout the world. Today most jobs are being generated by small, information-sector employers, which can become global powerhouses with some new ideas and a few keystrokes on a computer. The pace of change is dramatic, it shows no signs of slowing down any time soon, and it has a vast impact on how pension fund money is invested. To start this process we ll be hearing from four leading authorities on the need for reform.