The last 401K Generation

Insurance Networking News/Reuters ^ | 3/1/2012 | Linda Stern

[Wicket]

(Reuters) - Will the baby boomers be the only generation to retire with 401(k) plans? It could happen.

Last week many of the nation's biggest thinkers on retirement got together in a Senate hearing room to discuss the future of pensions and retirement. There were representatives of unions, employers, financial services providers, government agencies and consumer groups. And the only thing they all seemed to agree on was this: The 401(k) plan has been sort of a failure.

Those are strong words, and probably overstate the case. Current and future retirees now have some $4.3 trillion for retirement that wouldn't be there if it weren't for their 401(k) and other defined contribution accounts, so it's hard to declare them a complete failure. . . .

One type of policy proposal would divert 401(k) funding (either prospectively, or, in some cases, using existing assets) to buy into more pension-like plans. Hank Kim of the National Conference on Public Employee Retirement Systems is proposing that states, already used to running efficient pension plans, could run private pensions for small employers.

Plans advanced by a broad spectrum of experts, including Teresa Ghilarducci of the New School for Social Research, C. Eugene Steuerle of the Urban Institute and Richard Shea of Covington & Burling, would compel employees and employers to put money towards pension-like guaranteed plans. . . .

[Mariner]

Once the private money is in the hands of the public plan administrator, he will use that money to purchase the high-risk and underwater assets of the public plan at face value.

Thereby showing returns as projected...not the enormous losses they would incur if the assets had to be marked to market.

Magic. All problems solved.

[Silentgypsy]

“...powers that be are coveting that 4.3t stash of hard currency.” They’re also trying to figure out how to get a hold of corporate retained earnings.

[funfan]

So is the run up on stories that will enable them to steal all 401k plans?

[Boomer One]

Strongly agree. The 401K Plan allows you to leave funds to a spouse. By rolling these into pensions/income streams, any excess will be placed in the pot to overcome other shortfalls. With the creation of “death panels” to shorten our lives under Obamacare, want to bet on collecting your full benefit?

[Myrddin]

The weasels want to get their hands on the assets in the private 401k accounts so those can be squandered as well. My 401k is ALL I have for retirement. If it is stolen, I'm left with no assets except social security. Others similarly situated will create a large population fully dispossessed of a lifetime of prudent savings. When you have nothing left to lose, the reaction may be less than cool headed and rational.

[nascarnation]

Well the reality is that most everything else is tapped out.
It’s the last reservoir of wealth the govt can try and suck dry.

[Trod Upon]

I will fly the country before I am forced to buy any US bonds; they’re junk, and at this point they are backed by nothing more than the regime’s ability to inflate the currency. We already saw what the 0bama regime thinks of bondholders with the GM fiasco. No thank you.

[funfan]

Bull crap on the top expert title. “Plans advanced by a broad spectrum of experts, including Teresa Ghilarducci of the New School for Social Research”
Teresa Ghilarducci was on the Mark Levine program in 2008 and basically she wants you to have a Social Security type of plan- This lady wants to confiscate your current 401K
make no mistake about it. I don’t know who the other “Experts” are but she is a fox in sheeps clothing
watch out!!!

[JediJones]

Explains even more why the establishment is against Newt so much. He wants to expand personal accounts by giving us our Social Security money back to put in our own accounts. He’s for taking money and control away from the power-mad pigs in D.C. and giving us back money and control over our own lives.

[berdie]

later

[Mike Darancette]

Hank Kim of the National Conference on Public Employee Retirement Systems is proposing that states, already used to running efficient pension plans, could run private pensions for small employers.

Ummmmmmm....NO!

[Tallguy]

The article is written from the standpoint that investors need to pool their 401k money to achieve greater returns. Fine. Whose going to run the pool? The US Government with their current attitudes toward private enterprise isn’t going to allow insurance companies & banks do it. And even if they did, the goverment will take maximum political advantage of a large failure and grab the rest. I’ve seen this movie before.

[G Larry]

Folks seem to underestimate the disaster that is Obama.
Should he be re-elected, this will be:

THE LAST AMERICAN GENERATION!

[Mike Darancette]

Is this the plan where you accrue benefits in an account which they annuitize at retirement age; but, if you die the government keeps the money?

[Freddd]

‘Current and future retirees now have some $4.3 trillion.-—

Well they did before the government spent it.

[JediJones]

Wait for it...

http://en.wikipedia.org/wiki/Teresa_Ghilarducci

She obtained a B.A. in Economics from University of California, Berkeley in 1978.[4][11] She graduated from there in 1984 with a Ph.D. in Economics.[2][3][4][11]

She serves as a public trustee for the health care VEBAs for United Auto Workers retirees of General Motors, Ford Motor Company and Chrysler, and United Steelworkers retirees of Goodyear Tire and Rubber Company.[3][4][11][7][9][10]

Classic Alinsky-ite title for her book...claims there's a "plot against pensions" to cover up the fact that she has a plot against 401Ks...

In her book When I'm Sixty-Four: The Plot against Pensions and the Plan to Save Them, Ghilarducci proposed mandatory participation in a government-run savings plan to which each worker and their employer would supplement their Social Security pension by contributing 2.5 percent each of her or his salary.[3][4][7][8][9][10] The plan would be administered by the Social Security Administration, but would be separate from Social Security records. In turn, a refundable tax credit of $600 would go to each participant, regardless of his contributions. The account would have a guaranteed interest rate equal to the government's official inflation rate plus three percent.[1]

James Pethokoukis of U.S. News & World Report in jest called her "the Most Dangerous Woman in America".[12]

401(k) Foe Teresa Ghilarducci, the Most Dangerous Woman in America

By James Pethokoukis

http://money.usnews.com/money/blogs/capital-commerce/2008/10/29/401k-foe-teresa-ghilarducci-the-most-dangerous-woman-in-america

In an interview with my guy, Kirby Wilbur of KVI 570 AM in Seattle, Ghilarducci says one of her goals is—you guessed it—to "spread the wealth." Go about 12 minutes into the interview to hear it for yourself, gang.

[Billthedrill]

Is this the plan where you accrue benefits in an account which they annuitize at retirement age; but, if you die the government keeps the money?

Yeah, something like that. But with 0bamacare, you'll live forever! Or at least until the government finds your demise...useful...

[JediJones]

Doesn’t make sense to me. Aren’t we already pooling our 401K money by putting it in various mutual funds and such?

[funfan]

Ugh! It is getting harder day by day to stay cheerful. My husband had said if they try to confiscate his 401k he will just take the penalty and get an early distribution. My only hope is that we will get fair warning before they steal the money.

[RhoTheta]

Time to repost the parody of The Grasshopper and the Ant?

One of my remaining apprehensions, now that I am retired, is that the government will "nationalize" the fruits of my prudence.

After this administration turned the rule of law on its head by robbing the stock and bondholders of GM and redistributing ownership to their friends the unions, why should I not be apprehensive about anything they contemplate, legal or not.