Skip to comments.Do You Like the 401(k) System?
Posted on 11/29/2012 2:59:09 PM PST by DontTreadFred
Do you like the 401(k) systems? Ray Fisman says that the Fed should end the 401(k) because it is not helping people to save more money - http://www.slate.com/articles/business/the_dismal_science/2012/11/fiscal_cliff_401_k_s_and_iras_cost_the_government_billions_should_we_get.single.html. While I couldnt disagree more with the reason Fisman wants to end the 401(k) system, I do think it isnt helping average Americans. I think people would build up better savings by allowing pretax dollars to be used to pay down mortgage debt?
How about pay for your house AND save for retirement?
This is about the ninth article regarding 401k’s that I’ve seen in the last few days.
What’s that saying? “Setting us up for the bomb.”?
(It would be interesting to search the frequency of health-care articles prior to the take-over).
It is a wonder we managed at all. (/sarc)
I have been in one (401K’s and IRA’s) for the past 30 years, and had always thought they were a great deal. Now that there are rumblings of Obama confiscation of these accounts for funding a national pension / SS fortification.............. Not so much
I've got nearly a million bucks that says you're full of it, Ray.
Would be more if Obama hadn't been elected in 2008.
...and I’ll raise you another 2!!!!!!
The old defined benefit pension is better for employees, but the government regulations have made them so expensive to maintain that only a few businesses and the government have maintained them.
The 401(k) makes saving for retirement the responsibility of the employees. This is not a judgement on them. I’ll leave that to each individual to judge. I’m just presenting facts.
The risk involved in a defined benefit pension involves the health and survival of the sponsoring company, which bears the investment risks. while the risks of the 401(k)/403(b) are the usual investment risks, and are born by the participant employees.
For government employees - the risks are all born by the taxpayers.
Yup. 0bama/Reid/Pelosi/Unions/Black/Illegals are coming for YOUR money, America. They want it all.
People thought they were voting for a Black man. They voted for THIS.
How could a savings plan that is wildly popular and has tax advantages possibly NOT help people save???
Also, they want to take them away because people have saved so much in them.
What does all this tell you?
Let’s make 30 million Mexican citizens that are here illegally into voters, that will fix it!
Exactly, Williams. That huge sum that responsible savers have built up is just as attractive as the SS Trust Fund was back in the 60s. And now it’s gone. I do believe the 401Ks, being personal property and all, will pose a greater challenge for the government to take: but Pelosi, Reid and Obama are up to it.
I direct/manage my own retirement funds...and I've done just fine. No rules, no fee's...no locked in crap.
Not only did we appreciate the tax-deferred savings, but let’s not leave out the employer matching, which was an additional incentive to save.
Besides, when discussing mortgage debt-payoffs, let not forget that all it means is that the bank no longer owns the note on your house.
You still owe taxes, every year, no matter what. So who really owns the house at the end of your mortgage? Hint: it’s not YOU.
The goverment has only “maintained” pensions by stealing from tax-payers.
Most private companies have forgone the defined pension or are about to. The “government regulation” was an accounting rule change that made business list pension liabilities as a cost around 1988. Prior to this date pensions were just something many companies had but no idea if they had the funds to maintain them. GM looked okay on paper prior to this date. After 1988 not so much. Pensions cost money and are expensive to maintain but it has nothing to do with government regulations. Ask former workers of Poloroid about their pension.
My 401K is basically the same value at was 12 years ago. Wonder how much money the traders made off of that money?
I agree. As of now I have about 9,000 in my 401K and I really need that money since I have been laid off last October. That money can help me. I received a letter asking what I wish to do with it since I am no longer working for the company. From my understanding there will be a 10% plus another 20% that will be taken. I am now regretting for ever have to open a 401K I would rather keep my money in my bank, mattress or bra. At least I can get access to my money with no penalty or regulation. If I cash out I will get little out of the 9000 leaving me about what 2,000 while Obama and the government keep the rest. Never again will I open anything similar.
401K’s are a financial disaster that your usually locked into untill your retirement.
It didn”t help tha the market crashed every ten year or so.Though you would probably do worse putting the money in the bank.
The 401K is the only thing the government did that benefited the citizens...if they take that and IRA, blood will run in the capital. I thief is a thief....since many took advantage of the 401K, the government and its jealosy and envy of what others have saved is too tempting for them not to make a try for it....I don’t know what the penalty is for taking it out sooner, but might be worth the cost rather that have them take it all. With my IRA, which they also talke about taking has quite a bit in it...I have been living off it for years and have just now reached the point of tapping into princpal...I have a great financial guy and have been using him for 20 years....since my husband passed away....he has done good by me....
The only people that 401(k)s don’t help are the ones who don’t participate. I participated to the max almost every year I had it available to me and am very glad I (and my wife) did.
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