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The last 401K Generation
Insurance Networking News/Reuters ^ | 3/1/2012 | Linda Stern

Posted on 03/01/2012 5:41:11 PM PST by Wicket

(Reuters) - Will the baby boomers be the only generation to retire with 401(k) plans? It could happen.

Last week many of the nation's biggest thinkers on retirement got together in a Senate hearing room to discuss the future of pensions and retirement. There were representatives of unions, employers, financial services providers, government agencies and consumer groups. And the only thing they all seemed to agree on was this: The 401(k) plan has been sort of a failure.

Those are strong words, and probably overstate the case. Current and future retirees now have some $4.3 trillion for retirement that wouldn't be there if it weren't for their 401(k) and other defined contribution accounts, so it's hard to declare them a complete failure. . . .

One type of policy proposal would divert 401(k) funding (either prospectively, or, in some cases, using existing assets) to buy into more pension-like plans. Hank Kim of the National Conference on Public Employee Retirement Systems is proposing that states, already used to running efficient pension plans, could run private pensions for small employers.

Plans advanced by a broad spectrum of experts, including Teresa Ghilarducci of the New School for Social Research, C. Eugene Steuerle of the Urban Institute and Richard Shea of Covington & Burling, would compel employees and employers to put money towards pension-like guaranteed plans. . . .

(Excerpt) Read more at insurancenetworking.com ...


TOPICS: Crime/Corruption; Government; News/Current Events; Politics/Elections
KEYWORDS: 401k; babyboomers; nanny; retirement; seniors; spending; trends
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We're from the government and we're here to help - yeah, right.
1 posted on 03/01/2012 5:41:13 PM PST by Wicket
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To: Wicket
Normally I'd be skeptical, but hey, these are experts. Top experts.

I do think, though, that they ought to lay out their own personal finances for public inspection before they decide to change ours.

2 posted on 03/01/2012 5:43:41 PM PST by Billthedrill
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To: Wicket

Unions hate 401K plans since THEY want to claim credit for any benefit!


3 posted on 03/01/2012 5:47:05 PM PST by Kansas58
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To: Wicket
Would OUR money be invested as the heads of CALPERS decide to invest them?

Or would there be an even more stupid way to invest money in mob related activities and leftist companies?

4 posted on 03/01/2012 5:47:11 PM PST by texas booster (Join FreeRepublic's Folding@Home team (Team # 36120) Cure Alzheimer's!)
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To: Wicket

Financial repression.

Main threads here: 1) If you don’t make enough money to sock away a retirement, we need a program to socialize that, 2) Because some investments may go bad, let’s force everyone into a plan heavy on government securities (which incidentally helps government funding near term), and 3) the fund holding industry is looking for ways to give you less back than you’ve saved.

Great. The lesson here—once you’ve let the government control your assets for the promise of tax benefits, they’re going to take more than they initially said.


5 posted on 03/01/2012 5:48:59 PM PST by Pearls Before Swine
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To: Wicket

4.3 Trillion Dollars that the Feds would dearly love to get their grubby little hands on...


6 posted on 03/01/2012 5:49:03 PM PST by Tallguy (It's all 'Fun and Games' until somebody loses an eye!)
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To: Wicket
Aren't they kind of raising the bar? I thought the 401k was originally intended to be a simple encouragment for workers to save towards retirement, not provide a garaunteed living wage from retirement until death.

I think its more likely the powers that be are coveting that 4.3t stash of hard currency.

7 posted on 03/01/2012 5:49:48 PM PST by skeeter
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To: Billthedrill

It’s kind of ridiculous to call 401K’s a failure when government pension plans are so grossly underfunded. Pensions are the real failure. Pension plans are extremely expensive to fund. Think of large corporations like Bethlehem Steel that collapsed under their cushy pension systems. The company cannot grow enough to fund people into their 80’s and 90’s.

The real bubble that is going to explode is government pensions. We’re screwed.

They are just hitting on 401K’s because the government wants to get their hands on the money and have everyone living on the pittance they decide to give us in our retirement. When you stop producing and cost more than you contribute, they’ll cut healthcare and let you die a quicker death.


8 posted on 03/01/2012 5:50:25 PM PST by No Socialist
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To: Wicket

Pfl.


9 posted on 03/01/2012 5:52:54 PM PST by ConjunctionJunction
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To: Wicket
Public Employee Retirement Systems is proposing that states, already used to running efficient pension plans, could run private pensions for small employers.

LOL yeah, let the gov't run it. That will take care of it

10 posted on 03/01/2012 5:52:54 PM PST by paul51 (11 September 2001 - Never forget)
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To: No Socialist
They are just hitting on 401K’s because the government wants to get their hands on the money...

You-better-believe-it BTT. :-)

11 posted on 03/01/2012 5:52:58 PM PST by Billthedrill
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To: paul51

Unreal. These guys can’t even stay fiscally balanced in ANYTHING.

Stay away from my 401k you greedy bastards!


12 posted on 03/01/2012 5:55:15 PM PST by CommieCutter
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To: Wicket
This Teresa G. is a proponent of taking all retirement savings and giving it to the Government to put into a trust fund in exchange for a guaranteed return.

Probably will work until the politicians find a way to raid it like they did with Social Security.

13 posted on 03/01/2012 5:57:45 PM PST by rocksblues (Obama, the biggest liar in the history of American politics!)
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My retirement plan: Drink, Drink, Drink, maybe smoke again. Go out on a fun note!


14 posted on 03/01/2012 6:00:24 PM PST by VastRWCon (The Middle Class is the Tea Party)
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To: rocksblues

Yes, you are correct. She is a big proponent of GRA’s....Government Retirement Accounts. Total leftist, socialist.


15 posted on 03/01/2012 6:01:43 PM PST by prairiebreeze (Who are you and what have you done with Ann Coulter?!)
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To: Wicket

I think Joe Biden once said while he was a Senator that all private pensions and 401K and other retirement plans are all an “asset of the American people”.


16 posted on 03/01/2012 6:01:49 PM PST by ColdSteelTalon (Light is fading to shadow, and casting its shroud over all we have known...)
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To: Wicket

Get ready. They are going to confiscate your 401k by forcing you to buy government bonds. If you have “too much” most of your money will be redistributed to people who didn’t save.


17 posted on 03/01/2012 6:03:14 PM PST by FightThePower! (Fight the powers that be!)
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To: Wicket

Not just no, HELL NO!!!! They would have us give them our hard earned money so they can dole it back to us on their terms. OVer my cold, hard dead body. Ghilarducci and her ilk can step off. I cannot BELIEVE this is up for discussion. Oh, HELL NO!


18 posted on 03/01/2012 6:09:18 PM PST by SueRae (Tale of 2 Towers - First, Isengaard (GOP-e), then 11.06.2012, the Tower of Sauron)
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To: FightThePower!

If I were a politician, I’d think that voting for this would drastically shorten my lifespan.<./Henry Bowman>


19 posted on 03/01/2012 6:09:49 PM PST by DCBryan1 ("Forget the lawyers, FIRST kill the journalists!"- Die Ritter, die "nee" sagen)
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To: Wicket

This is because the pension funds running out of money. They have to get a new source of funding, so they are going to get your 401k money.


20 posted on 03/01/2012 6:10:03 PM PST by Vince Ferrer
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To: Wicket
Once the private money is in the hands of the public plan administrator, he will use that money to purchase the high-risk and underwater assets of the public plan at face value.

Thereby showing returns as projected...not the enormous losses they would incur if the assets had to be marked to market.

Magic. All problems solved.

21 posted on 03/01/2012 6:10:34 PM PST by Mariner (War Criminal #18)
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To: skeeter

“...powers that be are coveting that 4.3t stash of hard currency.” They’re also trying to figure out how to get a hold of corporate retained earnings.


22 posted on 03/01/2012 6:12:14 PM PST by Silentgypsy
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To: Wicket

So is the run up on stories that will enable them to steal all 401k plans?


23 posted on 03/01/2012 6:12:43 PM PST by funfan (and his crew)
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To: Billthedrill

Strongly agree. The 401K Plan allows you to leave funds to a spouse. By rolling these into pensions/income streams, any excess will be placed in the pot to overcome other shortfalls. With the creation of “death panels” to shorten our lives under Obamacare, want to bet on collecting your full benefit?


24 posted on 03/01/2012 6:13:18 PM PST by Boomer One
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To: Wicket
The weasels want to get their hands on the assets in the private 401k accounts so those can be squandered as well. My 401k is ALL I have for retirement. If it is stolen, I'm left with no assets except social security. Others similarly situated will create a large population fully dispossessed of a lifetime of prudent savings. When you have nothing left to lose, the reaction may be less than cool headed and rational.
25 posted on 03/01/2012 6:14:22 PM PST by Myrddin
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To: Tallguy

Well the reality is that most everything else is tapped out.
It’s the last reservoir of wealth the govt can try and suck dry.


26 posted on 03/01/2012 6:14:57 PM PST by nascarnation (DEFEAT BARAQ 2012 DEPORT BARAQ 2013)
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To: FightThePower!

I will fly the country before I am forced to buy any US bonds; they’re junk, and at this point they are backed by nothing more than the regime’s ability to inflate the currency. We already saw what the 0bama regime thinks of bondholders with the GM fiasco. No thank you.


27 posted on 03/01/2012 6:16:04 PM PST by Trod Upon (Obama: Making the Carter malaise look good. Misery Index in 3...2...1)
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To: Billthedrill

Bull crap on the top expert title. “Plans advanced by a broad spectrum of experts, including Teresa Ghilarducci of the New School for Social Research”
Teresa Ghilarducci was on the Mark Levine program in 2008 and basically she wants you to have a Social Security type of plan- This lady wants to confiscate your current 401K
make no mistake about it. I don’t know who the other “Experts” are but she is a fox in sheeps clothing
watch out!!!


28 posted on 03/01/2012 6:18:03 PM PST by funfan (and his crew)
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To: Boomer One

Explains even more why the establishment is against Newt so much. He wants to expand personal accounts by giving us our Social Security money back to put in our own accounts. He’s for taking money and control away from the power-mad pigs in D.C. and giving us back money and control over our own lives.


29 posted on 03/01/2012 6:24:57 PM PST by JediJones (Watch "Gingrich to Michigan: Change or Die" on YouTube. Best Speech Ever!)
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To: berdie

later


30 posted on 03/01/2012 6:25:19 PM PST by berdie
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To: Wicket
Hank Kim of the National Conference on Public Employee Retirement Systems is proposing that states, already used to running efficient pension plans, could run private pensions for small employers.

Ummmmmmm....NO!

31 posted on 03/01/2012 6:25:19 PM PST by Mike Darancette (Romney just makes me tired all over.)
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To: nascarnation

The article is written from the standpoint that investors need to pool their 401k money to achieve greater returns. Fine. Whose going to run the pool? The US Government with their current attitudes toward private enterprise isn’t going to allow insurance companies & banks do it. And even if they did, the goverment will take maximum political advantage of a large failure and grab the rest. I’ve seen this movie before.


32 posted on 03/01/2012 6:26:00 PM PST by Tallguy (It's all 'Fun and Games' until somebody loses an eye!)
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To: Wicket

Folks seem to underestimate the disaster that is Obama.
Should he be re-elected, this will be:

THE LAST AMERICAN GENERATION!


33 posted on 03/01/2012 6:26:46 PM PST by G Larry (We are NOT obliged to carry the snake in our pocket and then dismiss the bites as natural behavior.)
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To: Wicket

Is this the plan where you accrue benefits in an account which they annuitize at retirement age; but, if you die the government keeps the money?


34 posted on 03/01/2012 6:29:01 PM PST by Mike Darancette (Romney just makes me tired all over.)
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To: Wicket

‘Current and future retirees now have some $4.3 trillion.-—

Well they did before the government spent it.


35 posted on 03/01/2012 6:29:24 PM PST by Freddd (NoPA ngineers.)
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To: funfan
Wait for it...

http://en.wikipedia.org/wiki/Teresa_Ghilarducci

She obtained a B.A. in Economics from University of California, Berkeley in 1978.[4][11] She graduated from there in 1984 with a Ph.D. in Economics.[2][3][4][11]

She serves as a public trustee for the health care VEBAs for United Auto Workers retirees of General Motors, Ford Motor Company and Chrysler, and United Steelworkers retirees of Goodyear Tire and Rubber Company.[3][4][11][7][9][10]

Classic Alinsky-ite title for her book...claims there's a "plot against pensions" to cover up the fact that she has a plot against 401Ks...

In her book When I'm Sixty-Four: The Plot against Pensions and the Plan to Save Them, Ghilarducci proposed mandatory participation in a government-run savings plan to which each worker and their employer would supplement their Social Security pension by contributing 2.5 percent each of her or his salary.[3][4][7][8][9][10] The plan would be administered by the Social Security Administration, but would be separate from Social Security records. In turn, a refundable tax credit of $600 would go to each participant, regardless of his contributions. The account would have a guaranteed interest rate equal to the government's official inflation rate plus three percent.[1]

James Pethokoukis of U.S. News & World Report in jest called her "the Most Dangerous Woman in America".[12]

401(k) Foe Teresa Ghilarducci, the Most Dangerous Woman in America

By James Pethokoukis

http://money.usnews.com/money/blogs/capital-commerce/2008/10/29/401k-foe-teresa-ghilarducci-the-most-dangerous-woman-in-america

In an interview with my guy, Kirby Wilbur of KVI 570 AM in Seattle, Ghilarducci says one of her goals is—you guessed it—to "spread the wealth." Go about 12 minutes into the interview to hear it for yourself, gang.

36 posted on 03/01/2012 6:31:03 PM PST by JediJones (Watch "Gingrich to Michigan: Change or Die" on YouTube. Best Speech Ever!)
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To: Mike Darancette
Is this the plan where you accrue benefits in an account which they annuitize at retirement age; but, if you die the government keeps the money?

Yeah, something like that. But with 0bamacare, you'll live forever! Or at least until the government finds your demise...useful...

37 posted on 03/01/2012 6:32:20 PM PST by Billthedrill
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To: Tallguy

Doesn’t make sense to me. Aren’t we already pooling our 401K money by putting it in various mutual funds and such?


38 posted on 03/01/2012 6:33:08 PM PST by JediJones (Watch "Gingrich to Michigan: Change or Die" on YouTube. Best Speech Ever!)
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To: JediJones

Ugh! It is getting harder day by day to stay cheerful. My husband had said if they try to confiscate his 401k he will just take the penalty and get an early distribution. My only hope is that we will get fair warning before they steal the money.


39 posted on 03/01/2012 6:37:41 PM PST by funfan (and his crew)
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To: Wicket; Egon
Time to repost the parody of The Grasshopper and the Ant?

One of my remaining apprehensions, now that I am retired, is that the government will "nationalize" the fruits of my prudence.

After this administration turned the rule of law on its head by robbing the stock and bondholders of GM and redistributing ownership to their friends the unions, why should I not be apprehensive about anything they contemplate, legal or not.

40 posted on 03/01/2012 6:38:11 PM PST by RhoTheta ("We're from the Government, and we're here to help you ... NOT")
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To: Mike Darancette

Belevie it is


41 posted on 03/01/2012 6:40:17 PM PST by funfan (and his crew)
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To: Tallguy

Whose going to run the pool? I can see a whole lot of John Corzine types ready to lead the way.

I will quit my job tomorrow and pull every last dime out of the 401K. I’ll make my OWN plans. And I’ll leave it to whoever I want to when my time here is done


42 posted on 03/01/2012 6:41:09 PM PST by SueRae (Tale of 2 Towers - First, Isengaard (GOP-e), then 11.06.2012, the Tower of Sauron)
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To: funfan
My only hope is that we will get fair warning before they steal the money.

An email will go out freezing all assets and trading, the next minute the (your) money belongs to the USA.

43 posted on 03/01/2012 6:45:00 PM PST by Mike Darancette (Romney just makes me tired all over.)
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To: Trod Upon
If you leave the country you have to pay the equivalent of the inheritance tax on your own money.

I think part of their plan is to pull the Federal Reserves support out from under the stock market. One it crashes, most people will beg for help from the Government, who will offer a guaranteed return on your money. It will end up being a popular measure.

I also think it will be a Republican who does this. The in the same sense that Nixon could go to China and Clinton could pass NAFTA and welfare reform. A Republican will confiscate 401k’s. Maybe Romney if he gets elected, if not it will be which ever Republican replaces Obama in 2016.

44 posted on 03/01/2012 6:45:48 PM PST by FightThePower! (Fight the powers that be!)
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To: Mike Darancette

Plans advanced by a broad spectrum of experts, including Teresa Ghilarducci of the New School for Social Research, C. Eugene Steuerle of the Urban Institute and Richard Shea of Covington & Burling, would “COMPEL” employees and employers to put money towards pension-like guaranteed plans.”

They are going to COMPEL or FORCE you into the plan


45 posted on 03/01/2012 6:47:52 PM PST by funfan (and his crew)
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To: Wicket
Retirement plans?
ROTFLMAO!

Every government hiree has a vested interest in making certain every nongovernmental employee keeps paying into their taxpayer funded retirement ponzi scheme.

All those income taxes on our W2 forms that are split three ways go into one bank account.
And that account is overdrawn, with interest and fees compounding daily...

401Ks were an attempt to give working people the chance to invest money for their own future benefit.
Epic fail.
Because every dollar placed in a 401K plan was a dollar taken out of the federal employee unions retirement mouthes.
We cant have people taking care of ourselves, can we?

46 posted on 03/01/2012 6:48:16 PM PST by sarasmom ( http://www.youtube.com/watch?feature=player_embedded&v=xZsFe6dM3EY)
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To: Wicket

Our government wants the 401k money.

You played by their rules. You did what they said. Now you’ll be punished for it.

I’m sure they are definitely going to try to fleece us.

Is anyone going to stop them? No?

Then it’s not even worth discussing.


47 posted on 03/01/2012 6:48:16 PM PST by Tzimisce (Never forget that the American Revolution began when the British tried to disarm the colonists.)
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To: justiceseeker93; ExTexasRedhead; Nachum

Between this and ObamaCare, it’s hard to be hopeful about the future if Obama wins a second term.


48 posted on 03/01/2012 6:50:56 PM PST by Clintonfatigued (A chameleon belongs in a pet store, not the White House)
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To: sarasmom
interest and fees compounding daily...

That's the scary part. Right now the only reason the deficit is as low (gag) as it is, is because the govt is borrowing at historic low interest rates. If those rates rise to normal levels, the deficit goes hyperbolic.

49 posted on 03/01/2012 6:55:34 PM PST by nascarnation (DEFEAT BARAQ 2012 DEPORT BARAQ 2013)
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To: FightThePower!

What makes you think Obama is not going to do this afterall Theresa Giladurchi or however you spell her name was called
by a Democrat panel to come up with it in 2008.


50 posted on 03/01/2012 6:58:39 PM PST by funfan (and his crew)
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