Should the federal government seize 401k holdings to save social security?

[w¡n9Nµ7 §£@¥€r 123]

I heard this on a radio show some time ago. The thread ongoing right now reminded me of it. Basically, there's a school of thought that if the federal government were to somehow 'take' all 401k holdings (both employee contributions and employer matches) and inject them into social security, it would be enough to keep SS solvent for a long time to come and allow for increased benefit levels.

Would you support this?

[Steve Y Jessica 1]

Hell no!!! I can manage my account much better than the government.

[w¡n9Nµ7 §£@¥€r 123]

Hell no!!! I can manage my account much better than the government.

Maybe, but if you agreed, then all those people without your financial management skills who will depend on social security for their post-retirement survival, will actually survive.

Won't you do that much for your fellow man?

[Dr. A ♥ O 203]

I would not support this. I say do away with social security and let us manage our own retirements.

[w¡n9Nµ7 §£@¥€r 123]

I would not support this. I say do away with social security and let us manage our own retirements.

What about low income people?

I can defer 15% of my income into a pre tax account, and that 15% is a decent sized number.

But for someone who makes, say, $30000/year, 15% is only $4500. That persons 401k will never be large enough to sustain retirement, even at healthy (say 6-8%) average annual returns.

[Dr. A ♥ O 203]

Hell I am low income and I know there are several ways to make your money earn money for you once you have a good nest egg.

They should teach investment and retirment to the youths at a young age in school and give it more importance than they have.

[w¡n9Nµ7 §£@¥€r 123]

Hell I am low income and I know there are several ways to make your money earn money for you once you have a good nest egg.

How much money your money earns is generally proportional to the amount of the money to begin with.

No way around that.

[wakeywakeup 1]

I heard this on a radio show some time ago. The thread ongoing right now reminded me of it. Basically, there's a school of thought that if the federal government were to somehow 'take' all 401k holdings (both employee contributions and employer matches) and inject them into social security, it would be enough to keep SS solvent for a long time to come and allow for increased benefit levels.

Would you support this?

He##@# No.. That is not something I would even consider.

[Dr. A ♥ O 203]

Right. So my point is if you have a good financial planner educate you say from the age of ten then all that babysitting money, law mowing money, burger flipping money can start being saved to accumulate that nest egg. Then when you get to your teens you can park your money in a CD for several months to a year and let it grow and keep reinvesting it over and over. CD's don't make as much as securities or annuities or even investing in equity but it's a healthy start. Then in your 20's once finished with your education and working on a career you can sit down with your financial planner again and discuss retirement savings ect... If only I knew then what I know now.

I firmly believe that the government should write us our checks for social security so we can invest it the way we want and do away with the system.

[w¡n9Nµ7 §£@¥€r 123]

CDs

What's next, a "high interest savings account"?

[Dr. A ♥ O 203]

Guess u didn't read everything I wrote?

[w¡n9Nµ7 §£@¥€r 123]

I did. It's not a "healthy start".

Small money + weak returns = no retirement.

[Dr. A ♥ O 203]

Securities, annuities, equity as well?

[w¡n9Nµ7 §£@¥€r 123]

Sure, but all of it depends on larger sums of seed money.

You can't throw a BK paycheck into stocks and expect to retire on it.

This is why a rescue of SS is so vital. It will allow everyone to retire, not just those who made more during their working lives.

[Dr. A ♥ O 203]

When you're 10 years old coming from low income a $5,000 CD is your main option at first to have your money make money until you can get a large sum such as $25,000 to invest in a securities option which may not be possible until you're in your 20's. That is what I was originally getting at.

Stocks are a whole different story if ppl are fortunate to get that option with a company they sign onto but not everyone is aware of them. There needs to be more financial education at a younger age so ppl are aware of their option.

I am saying if S.S. didn't take that money out of my paycheck at a younger age I could have started investing that money the way I wanted and insure my own retirement. Now ppl are at the mercy of a system that even Alan Greenspan was saying will be bankrupt by 2008.