Posted on 07/23/2010 7:38:18 PM PDT by Libloather
Retirement will be risky for many Americans, study says
BY DAVID NICKLAUS
Posted: Wednesday, July 21, 2010 1:20 pm
More than 40 percent of Americans are at risk of having too little retirement income, a new study by the Employee Benefit Research Institute says.
What's more, the oldest workers are the least prepared to quit working. The EBRI says that 47% of early Baby Boomers are at risk of running out of money in retirement, compared with 44.5 percent of Generation Xers.
For some people, retirement savings won't last very long at all. Among the lowest-income quarter of the working population, 41 percent will be short of money after a mere 10 years in retirement.
The study doesn't say what should be done about this problem; it only suggests that officials take these results into account when designing retirement policy.
Charts in the EBRI study show the benefit of adding one popular fix, an auto-enrollment feature, to 401k plans. A 25-year-old in a plan with auto-enrollment and auto-escalation (where your contributions will increase each year unless you opt out) would accumulate more than twice as much savings as a typical 25-year-old in a plan without those features.
Other recent research, though, says that may not be true. Economists from the IMF and the Urban Institute says that employers with auto-enrollment plans tend to be less generous with their matching contributions. Mauricio Soto and Barbara Butrica write:
(Excerpt) Read more at stltoday.com ...
http://www.hindustantimes.com/rssfeed/americas/Obama-ushers-in-new-financial-era/Article1-576317.aspx
"It is not a perfect bill, I will be the first to admit that. We don't know ultimately how well the ideas we've incorporated here will achieve the results we desire. It will take the next economic crisis, as certainly it will come, to determine whether or not the provisions of this bill will actually provide this generation or the next generation of regulators with the tools necessary to minimize the effects of that crisis when it happens," Sen. Chris Dodd said Thursday.
http://www.realclearpolitics.com/video/2010/07/15/dodd_it_will_take_another_economic_crisis_to_determine_if_financial_reform_worked.html
Manufacture another crisis and assume control of all that 401k loot. Protect yourself.
They are already working on the crisis. Evidently there is a serious trend of employers stealing from 401k funds.
If they try anything like that they will have trouble getting out of Washington alive.
One of the words that has high emotional scores among Dems is “risky”. They don’t like risk.
Thanks to Dodd and Frank my 401k became a 201k. The idiots in government (I repeat myself) created the problem and now I afraid they truly believe they can fix it.
401K is a great deal when you have money and a income that gets killed in taxes, but just starting out? Try furnature and a down payment on a house.
Heard that one today.
You would think they could take a break from manufacturing crises what with all the real crises that they’re not addressing. But you would be wrong.
I have a had non-contributary plan for 31 years as part of my compensation. Not a 401K, although I have of those too.
If any of this is stolen or the contract broken and rewritten retroactively by fed govt decree. There will be revolution.
HUSBAND: What happen?
WIFE: Somebody set up us the taxes.
FINANCIAL CONSULTANT: We get pwnd on 401K
HUSBAND: What!
HUSBAND Computer screen turn on.
FINANCIAL CONSULTANT: It’s you!!
OBAMA: How are you gentlemen!!
OBAMA: All your 401K’s are belong to us.
Oh beautiful, just frekin' beautiful! Its not a bear market. It is my own company robbing me.
(Evidently there is a serious trend of more union organizers being employed by the Federal Government)
I have to joke about it, but this type of thing IS serious and it is going to happen.
You KNOW it is going to happen.
I can hear a lot of people right now:
“Oh, they would NEVER take our 401K’s against our wishes and put force us to put them into a government controlled retirement plan.”
Holy Moley! Angie!
ROTFLMAO!
Hmm. What will it be?
Death by frisking Police Woman? Or...
Death by Government Booga Booga?
The fix is in. Gas up the ol' VW van and smile, smile, smile.
See you on the other side.
Argentina.
We will have a 401K if we take it out of our 401K, otherwise the money will become Pesos (if we are fortunate).
Eventually the word “retirement” will no longer be found in Webster’s dictionary.
“You’re not retiring!”
“Get back to work, you old fool! 0bamaCare isn’t free, you know!”
Boy...are Americans going to get the shock of their lives when this new government’s commie turd hits them square between their eyeballs!
Welcome to America 2010!
You are all just state property—owned by the leftist ruling class in D.C.
Game Over.
And HAVE to pay it back - with interest - and pay taxes on it later? Good luck with all that.
Never though I’d say this but we are setting up to go Galt for real. We must throw them out in November and reset most of what has passed in the 40 years or so.
That never gets old to me!
BTW, I support Obamacare for Boomers!
Good thing there's an urban dictionary. It'll either be called 'livin' free' or "I'm RICH beotch"!
Im a Boomer.
Oh, man. I know I shouldn’t even laugh about this subject, but...it is too fraught with humor.
Heck, I suppose I am in that age range, so...off I go to the Gulag on one of Willie Green’s trains...:)
I have 2 sisters and 1 brother. One sister (late 40’s) and the brother (mid 50’s) have absolutely ZERO saved for retirement. The sister because she spends everything she gets and the brother because of alcoholism (thankfully he has been sober the last 3 years).
Anyway, they will jump on the first bandwagon looking for retirement money from the government... doesn’t matter where it comes from. Couple that with all the other people who have not saved a dime, and our 40lk’s are toast!
>p?
Screwed beyond belief. Better finish off that basement.
Maybe you missed my first two words. I said SCREW IT.
I will pay nothing back, nobody can make me. There is no later. Merciful heaven FRiend haven't you been watching Glen Beck ? It is OVER!
Nope. Saw it. Liquidate now, pay the taxes and sleep better on that mattress account.
Touche! You topped me with a Willie Green train referance! LOL
HA!
“Screwed beyond belief. Better finish off that basement.”
Looks like we will all be living in someone’s basement once Zero steals our 40lk’s. :(
I turn 31 next week. Hubby is 33. We’ve been saving for retirement with a Roth IRA and 401K for six years. But we’re they only ones I know who do so, our age that is. I’m not sure how big an uproar messing with them would cause. I would be mad as hell, but how many more would just shrug and say whatever?
I met her on more that one occasion and she is way more attractive in person and that frickin body OMG
Isn’t the problem with this approach... the money will soon be worthless anyway??
I’ve been trying to talk my husband into taking our 40lk money out paying the penalties, buying land with a natural spring, and then see what happens. So far, he isn’t very excited about that scenario.
If you haven’t read it, you should check out today’s installment at http://www.freerepublic.com/focus/f-religion/2557791/posts and be sure to check out dfwgator’s post at 14 and the reply By pessimist at post 25!
There is a flying Monkey exiting butt reference there...
SHE was a babe...yer a lucky man, al baby...
I would like those people in their sixties to apologize for playing by the rules. Also Santa should say he’s sorry.
The elves brush up on their Act of Contrition.
Whoops, wrong thread.
In the long run we’re all goners anyway.
I've instructed my 20-something kiddo to save as much as possible. The excrement is about to hit the fan. Don't worry about anyone else who doesn't have a plan - not your problem.
When things get really bad, can I stay in your mansion?
Happy birthday, BTW.
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