Obama wants to steal your 401K

[w¡n9Nµ7 §£@¥€r 123]

Jan. 8 (Bloomberg) -- U.S. investors oppose federal initiatives that would force them to give up control over their 401(k) accounts, the Investment Company Institute said.

...

“People value the tool of the 401(k),” Paul Schott Stevens, chief executive officer of the institute, said at a news conference in Washington. “They do not want government to take it away from them. They think the structure works very effectively.”

...

The Obama administration will seek ways to promote conversion of 401(k) accounts after their average value fell in the past three years alongside a 46 percent drop in the Standard & Poor’s 500 Index.

The U.S. Treasury and Labor Departments will ask for public comment as soon as next week on ways to promote the conversion of 401(k) savings and Individual Retirement Accounts into annuities or other steady payment streams.

...

The average 401(k) fund balance dropped 31 percent to $47,500 at the end of March 2009 from $69,200 at the end of 2007.

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Those diminishing balances represent a bigger problem, said Roger Ferguson, chief executive officer of retirement-planning firm TIAA-CREF. Retirement plans should include a built-in, low- cost guaranteed-income option to cover basic costs, like housing and utilities, for life, he said.

“America is facing a retirement crisis,” Ferguson said in an e-mailed statement. “Choice is important, but the critical issue is whether an account can provide enough income in retirement.”

http://www.bloomberg.com/apps/news?pid=206...id=aR9zVMXzOeX0

[mawilson 2,133]

Yeah, let's give our 401(k) accounts to the government because they've done such a bang-up job managing social security.

[one...two...tree 2,762]

Yeah, let's give our 401(k) accounts to the government because they've done such a bang-up job managing social security.

Social Security has been one of the best domestic policies over the last 60 years.

[w¡n9Nµ7 §£@¥€r 123]

Take your social security dogfight to another thread, boys.

This thread is about Obama's attempt to redistribute our 401k money to the irresponsible schmucks (we all know who they are) who haven't made good use of them.

[scandal 951]

My 401K plan allows me to invest in a range of bond funds, money market funds, TIPS (Inflation protected) funds, etc.

Nobody forces me to put 100% into equities. I diversify across a range of income/growth options in accordance with my age, retirement horizon, and risk profile. I understand that markets go up and they go down. I don't let a one year loss scare me off my long term retirement goals.

If everyone acted in this way, there would be zero problems with 401K plans.

I do understand that some people are stuck with 401K plans that don't have as many options. Some require them to invest in only their own company's stock. That's a bad idea, no matter who you work for. People with such plans should try to convince their employers to give them a better deal, or look for a more enlightened employer.

[mawilson 2,133]

Social Security has been one of the best domestic policies over the last 60 years.

It would have been, had the politicians not squandered the money leaving the "SS lockbox" bankrupt.

[MrsCat 6]

Obama can have the $0.32 left in our 401K. Its costing us more than that to administer it each month.

[mawilson 2,133]

My 401K plan allows me to invest in a range of bond funds, money market funds, TIPS (Inflation protected) funds, etc.

Nobody forces me to put 100% into equities. I diversify across a range of income/growth options in accordance with my age, retirement horizon, and risk profile.

In fact, there are funds that do that for you automatically, based on your retirement age

(e.g. Fidelity Freedom 2020, 2030, 2040, etc)

[w¡n9Nµ7 §£@¥€r 123]

My 401K plan allows me to invest in a range of bond funds, money market funds, TIPS (Inflation protected) funds, etc.

Nobody forces me to put 100% into equities. I diversify across a range of income/growth options in accordance with my age, retirement horizon, and risk profile. I understand that markets go up and they go down. I don't let a one year loss scare me off my long term retirement goals.

If everyone acted in this way, there would be zero problems with 401K plans.

I do understand that some people are stuck with 401K plans that don't have as many options. Some require them to invest in only their own company's stock. That's a bad idea, no matter who you work for. People with such plans should try to convince their employers to give them a better deal, or look for a more enlightened employer.

How do you feel about the SEC taking your 401k away unless you explicitly opt to retain it?

[scandal 951]

How do you feel about the SEC taking your 401k away unless you explicitly opt to retain it?

Link? Nothing in your original post (yes I scanned the Bloomberg article) mentions the SEC anywhere.

[w¡n9Nµ7 §£@¥€r 123]

oops, I was thinking of the Obama/SEC attempt to steal your MMA accounts.