Posted on 11/15/2008 1:27:02 PM PST by Libloather
Rush Limbaugh's plot to keep us from fixing retirement
Posted by Justin Fox
Friday, November 14, 2008 at 1:18 pm
The American system of retirement saving is in big trouble. Not so much Social Security: That has some long-term funding issues, but they are--actuarily, if not politically--easily fixable. The big problems are with workplace pensions and retirement accounts.
As everybody knows, the corporate pension system that evolved after World War II is on its last legs. Its replacement, the 401(k), just isn't very good. It has improved some over the past couple of years, as many companies have taken the lessons of behavioral economics to heart and rejiggered their 401(k)s to encourage more saving and more rational asset allocation. Congress passed legislation in 2006, sponsored by noted leftist agitator John Boehner, encouraging them to do just that. But 401(k)s still leave individuals extremely exposed to market swings--as we've relearned over the past couple months--and huge segments of the American workforce either don't take full advantage of 401(k)s or don't even have access to them.
**SNIP**
These accounts would insure that all American workers have some sort of retirement savings, but they'd still suffer from the existing flaw of 401ks and IRAs in that they would subject individuals to an awful lot of market risk. They'd also cost a bunch of money, which would have to come from somewhere.
Enter Teresa Ghilarducci, an economics professor at the New School for Social Research in New York.
**SNIP**
Nowhere is there any acknowledgment that pretty much everybody in the pension world agrees that 401(k)s are deeply flawed, in that they are failing to provide retirement security for most Americans.
(Excerpt) Read more at curiouscapitalist.blogs.time.com ...
Justin Fox is an Idiot’s idiot.
Is Rush saying that Americans need to be forced to use 401s? I can’t imagine I read that correctly. Everyone who puts money in the stock market knows it can go up and down. Yes currently most 401 portfolios look like penny stocks, but this is cyclical and will return to big gains someday. He should just give his opinion that people should save if they feel like it....no mandatory!!!
Because, well, you know, he's rich. That about sums it up, after you wade through a thousand-plus words of gibberish.
It’s more propaganda and training for the great unwashed masses.
There’s $3T in 401Ks that the politicians are itching to get at and confiscate. The carrot is returning your balance to some preset date, say Aug 08.
No thanks!
Time might try actually listening to Rush. He really is much, much smarter than the Obamalooooon is - even with half his brain tied behind his back.
Am I wrong? Let’s wait a couple of years and see who was more prescient on the economy and foreign affairs.
Heh.
I would rather see a licensing effect for existing 401Ks. Everyone gets a basic mix of something. If you want to change your selection options, you go and pass a test.
The test is more designed to make sure you are not a complete idiot and understand that you CAN loose money with a 401K and that there are tools to AVOID such losses. And any such profits / losses are on your own head.
Pass the test ..... you get to invest how you want within the company plan. Otherwise you are stuck with the basic mix.
One comment there:
jakerader Says:
Friday, November 14, 2008 at 11:36 pm
I knew Professor Ghilarducci when she was on the board of directors of the Indiana Public Employees’ Retirement Fund. She’s a very intelligent and a provocative thinker. People would be well advised to at least give her proposals careful study.
The Republican/Conservative reaction amply illustrates why that party is rapidly going down the drain.
Only if the government stops nationalizing companies and banks.
These are some dangerous people. I don't know how deep this ideal has leaked into the current congress or if it's even being considered or written, but I fully expect it to be in the headlines within a year. Obammy will sign it and his appointed liberal justices will squash any and all challenges related. Anoyther ss fund waiting to happen.
Not if you liquidate.
It is interesting to me that those who have huge retirement gimmes are quick to screw the average guy....not talking military personnel but those idiots on capital hill who get 100 percent retirement for what? 6 years of service. Sheesh and they ALL fail at their jobs too...what a racket. If they start taxing IRAs and 401Ks then I truly believe mortgage deductions are next...
ping
You can't be both serious and a conservative.
It's MY money. If I want to invest it in penny stocks, antique automobiles and colored beads, I should damn well be able to do so.
There is NO freedom...if we aren't free to be stupid.
It's my money, is it not? If I invest like an idiot then I suffer the consequences. It's not really any of your business.
Like keeping it in a money market. No Wall Street investments are required.
Up until the RATS confiscate it - yes.
I would rather see people keeping the he** out of other peoples business. You are as bad as any liberal or fascist. Pass a test before you can invest your money? People are free, or should be, to invest their money as they see fit. If they don't know what they are doing they can seek expert help. They don't need you, or the government, to tell then what they can and cannot put their money into.
Just what we need, more government control/SAR
Rush may not say it, but I will. Take your 10% hit on early withdrawl, if there’s anything left. You have a mattress, don’t you?
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