Posted on 01/17/2017 4:56:59 AM PST by BradtotheBone
Experts, including some pioneers of the 401(k) savings plans , worry that the current retirement system is not working for many Americans.
More than half of workers — roughly 55 million — don't have access to a retirement plan on the job and 29 percent of households with members age 55 and older don't have a nest egg or a traditional pension plan.
Perhaps a guaranteed mandate would work better, according to an odd couple of retirement system reformers.
Teresa Ghilarducci, director of the Schwartz Center for Economic Policy Analysis at the New School, and Hamilton "Tony" James, president and chief operating officer of asset manager Blackstone Group, have proposed replacing 401(k) plans with a guaranteed retirement account run by the federal government and managed by investment firms.
Ghilarducci said she has shared their proposal with officials from President-elect Donald Trump's transaction team and said she thinks the plan offers a public-private solution that could gain bipartisan support.
"The number one priority for many of Trump's voters is retirement security," Ghilarducci said. "This could be a Nixon-goes-to-China moment for Trump."
In guaranteed retirement accounts, every employee would contribute a mandatory 2.5 percent of their salary and employers would pay another 2.5 percent of a worker's earnings. (This is on top of the combined 15.3 percent of wages workers and their employers contribute to payroll taxes to fund Social Security and Medicare.)
The accounts, which would guarantee at least a 2 percent annual return regardless of market conditions, would be controlled by the Social Security Administration and the contributions would be invested by managers selected by the federal government.
(Excerpt) Read more at yahoo.com ...
“I-O”.......agree completely! Our SCOTUS needs to get back to the original intent of the Constitution. Hopefully Trump will appoint people who will nullify the two Communists (and appparently very good persuaders/manipulators) that Obama put on the SCOTUS (and the Republicans CONFIRMED).
HOOOLLLEEEE Cow!
It is just a matter of time before they figure they can prop up a disaster with all those retirement dollars.
Look for this idea to be “floated” continually until it gets traction.
After you are 59-1/2, you can remove your 401K funds to an IRA and if you are willing to take the time, you can get it to a situation where it is out of the grasp/control of the Treasury.
This is going to be the biggest looting of the American taxpayer in history.
I hope Trump can stave it off for a bit, but the numbers are such that it is inevitable.
Pay your money, take your chances.
Roth is after tax money contribution. You pay tax going in, but proceeds are tax free. Roth IRA's went on line in the late 90's. Roth 401K's became available around 2006.
LOL - run by the government!
Another government program that would be forced on us but Congress would exempt themselves. Sure.
Hopefully, after such a blessed 16 years, we'll have had two administrations show Americans how to be great again. And being great means that people who want to work for meaningful wages, can find work. Being great means that a rising tide lifts all boats, so to speak. And if you have people working, those people can legitimately save and be in control of their destinies, not dependent upon some government scheme for some future promise of a pittance.
If we can have that, getting America back on the right track, where we're making things, and not being told how "mediocre" we are by people like Obama, people won't have a need for the likes of this witch.
#43 I have some close that have the same opinion.
My response is “If you truely feel that way, instead of trying to steal from me why don’t YOU fund them? If you truely support it, then do it with your INCOME not mine.
Then ask them how many of those don’t have a smart phone, 250 dollar sneakers, gold grill(teeth), a vehicle with a 1,000 dollar sound system with a subwoofer that is ruining their hearing, 1500 dollar rims on that ride and the latest trendy clothing?
At that point they usually roll their eyes and walk away. :)
Who will be "encouraged" to buy nothing but Treasuries.
And what's with the "guaranteed" 2% growth no matter the economy?
Where the heck do you get this idea you have to work at several jobs to invest money?
Simply don’t take that weekend trip, go pay to see movies, pay to go to entertainment venues, buy stuff you want..not need. The list goes on and on and on. It’s a common known fact that the more you make the more you spend on things you like and want. Everything except saving it. In most cases today, married or co-habituating couples have plenty of excess money to “stash away for a rainy day.” It’s not up to your employer to be your “baby sitter” financially.
Using your time productively; if you want to accelerate wealth accumulation, work more. Living within your means goes without saying.
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