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The Champions of the 401(k) Lament the Revolution They Started (Teresa Ghilarducci, again)
http://www.wsj.com/articles/the-champions-of-the-401-k-lament-the-revolution-they-started-1483382348 ^ | January 2, 2017 | Timothy W. Martin

Posted on 01/02/2017 11:45:22 AM PST by abb

snip

Economist Teresa Ghilarducci, director of the Schwartz Center for Economic Policy Analysis, says she offered assurances at union board meetings and congressional hearings that employees would have enough to retire if they set aside just 3% of their paychecks in a 401(k). That assumed investments would rise by 7% a year.

snip

Ms. Ghilarducci wants to ditch the 401(k) altogether. She and Blackstone Group President Tony James are recommending a mandated, government-run savings system that would be administered by the Social Security Administration and managed by investment professionals. While both are Democrats, they believe their solution has bipartisan appeal.

She says she has already reached out to President-elect Donald Trump’s advisers to float the plan.

snip

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


TOPICS: Business/Economy; Extended News; Government; News/Current Events
KEYWORDS: 401k; ira; socialsecurity; teresaghilarducci
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To: abb

These radical leftists want to squeeze taxes out of your IRAs before you retire. Be wary of them.


41 posted on 01/02/2017 12:41:14 PM PST by Oldeconomybuyer (The problem with socialism is that you eventually run out of other people's money.)
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To: abb
They really don't care to much about the structure of your plan. They want your money to cover their social spending schemes, and they are going to take it - one way or another.

If you accept any kind of government tax deferral, you are giving them custody and control of your account until all taxes are paid, anyway. It's a short step for them to just, sort of, take it - and give you an IOU in its place.

42 posted on 01/02/2017 12:43:54 PM PST by Mr. Jeeves ([CTRL]-[GALT]-[DELETE])
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To: abb

They never factored in the possibility of a poop-for-brains disaster like Barack Obama willfully destroying the economy.


43 posted on 01/02/2017 12:48:53 PM PST by Iron Munro (If Illegals voted Rebublican 50 Million Democrats Would Be Screaming "Build The Wall!")
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To: abb
She and Blackstone Group President Tony James are recommending a mandated, government-run savings system that would be administered by the Social Security Administration

You mean like Social Security?

and managed by investment professionals.

... right up to the point that the government thieves need more money and can raid the fund to pay for corrupt programs that don't work.

44 posted on 01/02/2017 12:49:21 PM PST by IronJack
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To: SamAdams76
I cancelled my WSJ subscription so what’s the gist of this article? That 401(k)s are now bad because common people are doing so well with them?

Too many people don’t get in to 401Ks

People lost money in the 2000’s in market down turns.

Too many companies don’t have 401k plans.

Low interest rates have hurt earnings on 401ks.

Some people don’t invest enough in their 401k to provide for their retirement.

Companies have eliminated their defined benefit pension now that 401k’s are available as a cost savings measure.

People are too stupid to handle investing.

Wall Street makes too much money managing 401k’s

And of course ‘Government could do it better’.

45 posted on 01/02/2017 12:55:14 PM PST by Pontiac (The welfare state must fail because it is contrary to human nature and diminishes the human spirit.)
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To: SamAdams76

I still have my WSJ subscription but Im not ready this tripe. Lament, Democrat, Blackstone, Social Security. I do not need to see anything else. “Blackstone is not getting enough fees in this low yield era so they have lobbied their friends in government for help under the guise of looking out for the little guy.” Reads much better.


46 posted on 01/02/2017 12:56:07 PM PST by FreedomNotSafety
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To: wastoute

ding ding ding


47 posted on 01/02/2017 12:56:29 PM PST by ak267
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To: 2banana
How about giving me back my SS with the employer match and interest. And I will never bother SS again...

They would rather you just died so they wouldn't have to pay you.

48 posted on 01/02/2017 12:56:50 PM PST by Pontiac (The welfare state must fail because it is contrary to human nature and diminishes the human spirit.)
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To: blueunicorn6

If you allow Democrat government employees access to your money, they will help themselves to some of it.

ALL OF IT!!!!!


49 posted on 01/02/2017 12:57:40 PM PST by ak267
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To: freedumb2003
Ms. Ghilarducci wants to ditch the 401(k) altogether. She and Blackstone Group President Tony James are recommending a mandated, government-run savings system that would be administered by the Social Security Administration and managed by investment professionals.

Yah, that’s the ticket!

To see how well that will work just look at how well the state and city pension funds are doing.

50 posted on 01/02/2017 12:59:45 PM PST by Pontiac (The welfare state must fail because it is contrary to human nature and diminishes the human spirit.)
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To: abb

I would not trust people who mismanaged Social Security to take over a SECOND source of money.


51 posted on 01/02/2017 1:08:32 PM PST by tbw2
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To: All

They can’t even fund gov’t pensions let alone SS.

My parent’s generation (both in their 80’s) will be the LAST generation to have a so called “retirement”. Both parents were in the military and had post-military jobs in the gov’t sector. Both have double pensions and medical benefits.

For us siblings...not so much. We may get an “inheritance” but are not counting on it. We’ll probably work well into our 70’s and die within few years after we can physically no longer work.

Expect a drop in the standard of living and a decreased life expectancy.


52 posted on 01/02/2017 1:08:43 PM PST by ak267
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To: dljordan

Why are you fabricating claims against republicans? Republicans came up with 401s, 403s, IRAs, and Roth IRAs, the best thing that ever happened for retirement investors.


53 posted on 01/02/2017 1:09:38 PM PST by Neoliberalnot (Marxism works well only with the uneducated and the unarmed)
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To: Mr. Jeeves
They really don't care to much about the structure of your plan. They want your money to cover their social spending schemes, and they are going to take it - one way or another.

My 401(k) is in company stock. How would the government "take" my money without forcing a divesture of my stocks?

Wouldn't seizing my 401(k) be a de facto nationalization of the company whose stock I hold?

-PJ

54 posted on 01/02/2017 1:13:29 PM PST by Political Junkie Too (If you are the Posterity of We the People, then you are a Natural Born Citizen.)
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To: Neoliberalnot

401Ks and Roths are the best thing that ever happened for retirement investment firms. Options have gotten better, but forced investment in constrained funds with fees that far exceed returns is hardly the best thing for investors.


55 posted on 01/02/2017 1:15:30 PM PST by antidisestablishment ( We few, we happy few, we basket of deplorables)
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To: Skywise

Great post. There’s no “lockbox” with trillions in it.

The SS fund were thrown into the budget and used for other things.

Anything that might have been inflationary, life oil, etc. has been taking out of the inflation index so as to give no increases in SS for a decade or so.


56 posted on 01/02/2017 1:19:32 PM PST by dp0622 (The only thing an upper crust conservative hates more than a liberal is a middle class conservative)
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To: antidisestablishment

You sort of neglected the tax incentive which is why they are so attractive. The Roth IRA is the most attractive of all. How is your savings account doing?


57 posted on 01/02/2017 1:25:54 PM PST by Neoliberalnot (Marxism works well only with the uneducated and the unarmed)
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To: Neoliberalnot

My trading account is doing well. Thanks for asking.


58 posted on 01/02/2017 1:31:47 PM PST by antidisestablishment ( We few, we happy few, we basket of deplorables)
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To: dgbrown
"I do not trust the system now. I feel the whole 401k thing is good in theory but who has gotten a 7% return?"

The "matching" contribution from my employer has gotten me 50% ROI before market on most of my plan.

59 posted on 01/02/2017 1:32:10 PM PST by outofsalt ( If history teaches us anything it's that history rarely teaches us anything)
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To: Neoliberalnot

And the tax incentives in a traditional IRA is? Paying more later doesn’t sound like a deal to me.


60 posted on 01/02/2017 1:33:28 PM PST by antidisestablishment ( We few, we happy few, we basket of deplorables)
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