Political Ramblings

[punk-a-doodle]

http://www.amazon.com/Retirement-He...e=UTF8&filterBy=addThreeStar&showViewpoints=0 is something I would like to read to better understand 401 K programs, and how they currently function. My understanding a the momment is that they began as an executive tax loophole, and are often not beneficial to the average employee.
http://www.dailykos.com/story/2012/09/17/1132891/-The-401k-is-a-Government-Subsidy-for-Wall-Street My understanding is that gov subsidies and corporate interest mean they will be sticking around, but not for my benefit.

But, I don't really know much about it and have just started looking into it.

 

[MamaRoo]

This is more of what I am afraid of:

http://www.shtfplan.com/headline-ne...of-401k-accounts-may-be-reality-soon_10112010

http://www.foxandhoundsdaily.com/2012/09/the-government-seizure-of-private-retirement-plans/

http://www.humanevents.com/2010/05/04/republicans-sound-alarm-on-administration-plan-to-seize-401ks/

Most of this talk started in 2010, but there is nothing as pervasive or all enduring as a bad idea.

? Allowing people to privatize their own retirement? I think it's a great idea for people that are good with money, and a bad idea for people that aren't.

Instead of reading the sensationalized misrepresentation, why don't you read the original report: http://www.dol.gov/ebsa/newsroom/ty100710.html
and a straightforward commentary: http://money.cnn.com/2010/11/22/pf/expert/retirement_401k_government.moneymag/index.htm

 

[chickened]

? Allowing people to privatize their own retirement? I think it's a great idea for people that are good with money, and a bad idea for people that aren't.

Instead of reading the sensationalized misrepresentation, why don't you read the original report: http://www.dol.gov/ebsa/newsroom/ty100710.html
and a straightforward commentary: http://money.cnn.com/2010/11/22/pf/expert/retirement_401k_government.moneymag/index.htm

Is Congress good with money? just sayin

 

[MamaRoo]

Punk, from reading the reviews on the first book, it seems like it mainly addresses pensions. I've never worked at a company that offered pensions and it seems like they're on their way out anyway.

I skimmed the daily kos piece, but it seems quite one sided. I've always used my 401k accounts to may advantage.
1) I keep an eye on my income, and the wage brackets for taxes, and if possible I contribute more to my 401K in order to keep my income from pumping up into a higher tax bracket.
2) Most companies match at least some portion. If I put in 7.5%, and my company matches it, I've doubled my money without any risk at all.
3) As necessary, when changing jobs, I've moved my money from 401ks into retirement accounts. Two have no fees, one charges $1 per year - not a lot in management fees.

Sure, the accounts may benefit the company, and Wall Street, but I get quite a lot of benefit from them as well.

 

[MamaRoo]

Quote:
No, which is why I'd rather have my SS money turned over to me Let me run it the way I run the rest of my life.

 

[Africanchild]

*SS should be JUST like my 401k. What I put in, I should get out or just stop taking it out of my check and let me have my money to put in my 401K.

So if a person NEVER works in their life, do they get social security?

I better brace myself for this answer because if it's not what I want to hear then..............*holding my breath for the answer*.

If a person never works in their life they might be able to qualify for SSI (Supplemental Security Income) how much you qualify depends on many factors but the most I've ever seen someone be awarded is $698. You can also get SSI if you have a disability but never worked or put enough into the system so you don't qualify for SSDI (Social Security Disability Income).

 

[Capvin]

No, which is why I'd rather have my SS money turned over to me Let me run it the way I run the rest of my life.

That would obviously work for you. However, for the 75% (at least) of the rest of the people who will screw it up and wind up with zero when it comes time to retire, it will not work at all. What happens then?

PS: Sorry Mom, I just realized you said the exact same thing above.....

 

[rufus]

Chickened, I am not so sure of your optimistic outlook there. Investing is a gamble. I retired eight years ago and got my money out of my 457 plan, but most of the people I worked with are still working because their deferred comp money disappeared into nothing. They are in their seventies and eighties and still working. They will probably die in the traces.

I was lucky.

 

[punk-a-doodle]

Thanks mamaroo. Need to find out more about them! Anyone have any recommended reading on saving for retirement in general?

 

[ChickensRDinos]

You should also read about ROTH IRAs, punk.