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Do You Have a 401(k) Plan?

Discussion in 'Uncategorized Threads' started by JBrooks, Oct 24, 2008.

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  1. JBrooks

    JBrooks TS Member

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    If you do, maybe not much longer.

    Would Obama, Dems Kill 401(k) Plans?

    "October 23, 2008 10:47 AM ET | James Pethokoukis | Permanent Link | Print
    I hate to use the "S" word, but the American government would never do something as, well, socialist as seize private pension funds, right? This is exactly what cash-strapped Argentina just did in the name of protecting workers' retirement accounts (Efharisto, Fausta's Blog). Now, even Uncle Sam isn't that stupid, but some Democrats might try something almost as loopy: kill 401(k) plans.

    House Democrats recently invited Teresa Ghilarducci, a professor at the New School of Social Research, to testify before a subcommittee on her idea to eliminate the preferential tax treatment of the popular retirement plans. In place of 401(k) plans, she would have workers transfer their dough into government-created "guaranteed retirement accounts" for every worker. The government would deposit $600 (inflation indexed) every year into the GRAs. Each worker would also have to save 5 percent of pay into the accounts, to which the government would pay a measly 3 percent return. Rep. Jim McDermott, a Democrat from Washington and chairman of the House Ways and Means Committee's Subcommittee on Income Security and Family Support, said that since "the savings rate isn't going up for the investment of $80 billion [in 401(k) tax breaks], we have to start to think about whether or not we want to continue to invest that $80 billion for a policy that's not generating what we now say it should."

    More at the link.
     
  2. highflyer

    highflyer TS Member

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    I had one. I don't think it will matter anymore if the government confiscates what's left. Not much left to steal.
     
  3. wolfram

    wolfram Well-Known Member

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    I'm down about 30% but fortunately have about 18 years to rebuild something. Wonder what the folks in their late 50's with active investments are going to do. Talk about the rape of the american dream!
     
  4. crusha

    crusha TS Member

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    There is a non-sequitur in the Democrats' reasoning here...on the one hand, they say, "Savings rates aren't going up"...in other words, workers aren't utilizing the plans as much as they should.


    But on the other hand: they're saying the government can no longer afford the amount of tax break being conferred?


    Um...what?


    If workers contributed more, the "cost" to government would go up - so it's disingenuous. The a-holes are simply against any kind of individual savings that isn't taxed.


    I find it ironic that the same people who assailed Bush's plan to "Privatize Social Security" (truth-check - it was only a few percent)...are now advocating pushing the football the other way.


    How's this for word-smithing: we should shout from the rooftops that "Democrats want to Nationalize your 401k"...and then let THEM worry about the fairness and accuracy of that definition.
     
  5. highflyer

    highflyer TS Member

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    It looks like we are in the middle of a complete meltdown. Time to ask yourself which candidate will have the best soup lines. Maybe one of them will give us some crackers with our soup.
     
  6. ArmySGM

    ArmySGM Member

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    'I believe that banking institutions are more dangerous to our
    liberties than standing armies. If the American people ever allow
    private banks to control the issue of their currency, first by
    inflation, then by deflation, the banks and corporations that will
    grow up around the banks will deprive the people of all property
    until their children wake-up homeless on the continent their fathers
    conquered.'

    Thomas Jefferson 1802

    Gary
     
  7. oleolliedawg

    oleolliedawg Banned User Banned TS Supporters

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    I now have a 201K. The market seems to be pricing in an Obama presidency!!
     
  8. scott calhoun

    scott calhoun Well-Known Member

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    Wolfram -

    People in their late 50's getting ready for retirement shouldn't be impacted by this - they shouldn't be that heavily invested in stocks.

    Scott
     
  9. halfmile

    halfmile Well-Known Member

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    They are pumping the dollar prior to the election.

    Conservative invested 401K's are OK so far. The ones that have a bond fund elected. There was a small down pulse in Q2, not this time.

    After the election, hope the fund managers are good at short positions, I feel the floor is going to disappear.

    The investment part of most 401K plans is usually a screw. Those who elected "aggressive growth", I have the utmost sympathy.

    Mutual funds have way too many pitfalls, the worst being your dependence on the ability of the fund manager.

    Most 401K plans only let you select from a very limited basket of funds, usually from the financial organisation that was able to bribe your management most effectively.

    Those that aren't are lucky.

    HM
     
  10. grnberetcj

    grnberetcj Active Member

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    My 401(k) is +45% YTD.

    +12.5% in the last month.

    Curt
     
  11. halfmile

    halfmile Well-Known Member

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    Nice shot. Were you lucky, or did you do your due diligence and research before electing?

    Conservative, or Hairy?

    What group of funds?

    HM
     
  12. highflyer

    highflyer TS Member

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    So much for retiring early from investments in my 401k. Now my only hope is an Obama election along with a strong majority of Democrats in the house and Senate. Then I plan on quitting work completely and living off the government dole. This whole "working thing" wasn't working for me anyway. I would much rather be hunting or shooting.
     
  13. hoggy

    hoggy TS Member

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    Hey ARMY SGTM isn't that what the oil cartels are doing to us now? Only with oil?
     
  14. jimx200

    jimx200 Member

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    I have kept 50% of my 401 in Ca. tax free bonds (Franklin/Templeton) the past 12-15 years and have averaged almost a 6% return...tax free. The remainder is a mix emerging countries large cap, utilities, and a little gold. Down about 10% combined, but have been buying this week as there are real bargains to be had (Wells Fargo, GM, Ford, and Waste Mgmt). Got my fingers crossed, but this is a good time to pick up some seriously undervalued stock. I'll let you know next year how smart I was...lol.
     
  15. grnberetcj

    grnberetcj Active Member

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    Joe, et.al,

    Check out the Black Rock Global Resources (Intl, A, B, & C)

    Black Rock has many funds, these are the ones that are producing, others are floundering with recent events...but not these.

    Curt
     
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