Posted on 11/13/2008 5:48:27 AM PST by Libloather
Yes. As scapegoats.
Socialist governments have a way of inciting blame against anything that claims there's a higher power than Dear Leader.
You have to register with Motley Fool to read some of the articles, but their privacy policy is very good and I do not get spam email from them at all.
You have that right!
Excellent piece and thanks again!
I am no financial expert. But the question is, do you think the markets are going to go lower? Do you think there is a global financial crisis that is just beginning? Do you think a recession/depression will last for several years? If your answer is yes, then go ahead and move your money into the “cash” fund. You’ve already lost some, which is bad, but it’s not as bad as losing even more. I was holding on to the “conventional wisdom” too (markets always come back, don’t sell “low,” etc.), but now I realize it probably doesn’t apply to our current situation. Just my .02. Good luck!
Wells Fargo (our corporate bank) says recovery will take 10-15 years, so I am of the mindset that my investments may be back to square one by then. And that may be a stretch. The thought of losing 1/3 by moving to cash is just too painful right now, so I am taking the position that my adult children may reap the benefits; if not, maybe the grandkids?
Or are figuring that the government will renege on their promises regarding these accounts, and making other arrangements for retirement savings.
Haven't you heard the rumblings about nationalization of 401(k) accounts?
FR Thread: Who is Teresa Ghilarducci? Clue: She and the Democrats want to seize your 401k plans.
That Forbes article is very interesting! Here’s a snip:
“If EPS falls—as is most likely—to a level of $60, then with a price-to-earnings (P/E) ratio of 12, the S&P 500 index could fall to 720 (i.e. about 20% below current levels).
If the P/E falls to 10—as is possible in a severe recession—the S&P could be down to 600, or 35% below current levels.
And in a very severe recession, one cannot exclude that EPS could fall as low as $50 in 2009, dragging the S&P 500 index to as low as 500. So, even based on fundamentals and valuations, there are significant downside risks to U.S. equities (20% to 40%).
Similar arguments can be made for global equities: A severe global recession implies further downside risks to global equities in the order of 20% to 30%.”
***
So, you feel bad about losing 30%. But how bad would you feel if you lost another 20-40%? Really bad, I would guess! We’ve lost 25%, but I figure that’s much better than losing 50% or 80%. Just something to think about.
I’ve been thinking about it for months and wish I’d reacted when certain freepers were calling for precisely what’s happening. Isn’t there a maximum amount one can write off per year on income tax reporting? And is there also a number of years before you can’t report losses?
Go to discretionary employer contribution. That means the contribution made by the employer can be paid when they determine they can. If there is a profit, it benefits them to contribute and in a bad year they are not forced to match the employee’s contribution. The employee contribution is still made before tax.
I know, I wish we had gotten out sooner too! I really don’t know anything about taxes, but I don’t think you can claim any losses in a retirement account (401k or Roth or IRA, etc.). Maybe someone else here can answer your questions?
...”The purpose here is to convince us that Obama’s plan to eliminate the 401k tax deduction in favor of an expanded government retirement program is a wonderful idea. See these nasty employers can just take it away from you whenever they want. Never mind that the government can too,”...
That was my first thought, too.
Oh, I didn’t explain myself properly. I meant on losses from stocks, not 401k’s or IRA’s. We have to pay taxes on those!
I will not donate to my 401 ever again...it might not belong to me anymore....I might as well just bank it or put it under the mattress....
yes....the “match” is silly for me.....30 yrs of faithful service and this is what you get...and now to find out I may not even have my scrimping anymore/
but don't you think I should see my work's efforts say after 30yrs?....or should my husband, who has worked for someone somehow for 40yrs?
when people scrimp and save and postpone gratification, is it unreasonable that they spend some healthy years enjoying?....
I will do a roth for 2009 but I won't do 401k ......I also think I need to really boost my non-retirement money.......maybe that is safe from the govt but I just don't know
I didn’t look at mine, just asked a broker at my 401k to tell me the balance today and a year ago. Down by 1/3. Very troubling, but it’s not over yet! I’ve got pretty good nerves now but for awhile there I had trouble sleeping and heart related problems!
Well, a lot of companies are very worried that the tax advantage of the 401K is going away. So some are thinking to dump it now before Jan 1.
Heard hints of that where I work.
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