Calls grow to overhaul 401(k) retirement plans (don't read if you have high blood pressure)

Los Angeles TImes ^ | 11/15/08 | Jim Puzzanghera

[sergeantdave]

Smells like a set-up. Panic people into believing the government will steal their 401s. People panic and withdraw money, getting hit with a big tax and penalty. The result? Billions come into the treasury to pay for nobama’s schemes.

[rb22982]

I moved my 401k to BB&T Short Term US Treasury Bonds and Vanguard Total Bond fund when the dow started dropping (only 2 conservative options I’m allowed to choose from). I’m fortunately down less than 10% since the peak in Oct of last year.

[jveritas]

If someone has contributed $ 10,000 so far in his 401(K) and before the financial crisis his balance was $ 30,000 and after the financial crisis his balance is $ 20,000 then he did not lose his contribution money.

I should have said most people did not lose their base contribution in the 401(k) because some did as in the case of eggman but that is because eggman.

[ThePythonicCow]

So you weren't making any claims that the base contributions to 401(K)'s are handled any differently; you were only claiming that most people have earned enough in their 401(K) accounts that these earnings have absorbed the losses so far.

I am skeptical that what you say is true, and even if it was, I doubt anyone is going to feel better on account of looking at it in your terms, if their 401(K) has gone from say $600K to $400K, but only $300K of that account was original base contributions. They still just got hit with a 1/3 loss of their 401(K) retirement money.

Whatever ... I'm just jawing over wording ... I should shut up ;).

Take care.

[an amused spectator]

Ill take the early withdrawal penalty, the capital loss in the current market, and head for Costa Rica.

They already planned for people like you this summer.

[a real Sheila]

This has gotten my husband so riled up, he says it would be a revolution if they did this.

A lot of folks say this, but what would we actually DO? A "yuppie revolution?" Please! We just aren't prone to violence and rioting. Who are we going to fight against? Who fires the first shot? Then what? Are we going to storm the Capitol or the White House? Yes, we'd be MAD AS HELL, but I just cannot SEE any of us actually taking to the streets and risking our lives over the government seizure of our money. We are too busy WORKING to support ourselves and our families. Truthfully, there is no money or material thing that I value more than my own LIFE. I just cannot see any of us civilized folks taking to the streets looking for a gun fight. I DO own weapons though, and would not hesitate to protect my home and family from any "uninvited" visitors.

[gpk9]

I’ve read the first 86 comments. Most people are saying they’ll take their money out when the confiscation becomes law.

DO YOU NOT REALIZE BY THE TIME IT BECOMES LAW, THAT LAW WILL ALSO SAY YOU *CAN’T* WITHDRAW YOUR MONEY?

How IGNORANT, BLIND, and FOOLISH can you people be?

[Rightly Biased]

Typical government response if they can screw it up worse they will