Posted on 01/02/2017 11:45:22 AM PST by abb
snip
Economist Teresa Ghilarducci, director of the Schwartz Center for Economic Policy Analysis, says she offered assurances at union board meetings and congressional hearings that employees would have enough to retire if they set aside just 3% of their paychecks in a 401(k). That assumed investments would rise by 7% a year.
snip
Ms. Ghilarducci wants to ditch the 401(k) altogether. She and Blackstone Group President Tony James are recommending a mandated, government-run savings system that would be administered by the Social Security Administration and managed by investment professionals. While both are Democrats, they believe their solution has bipartisan appeal.
She says she has already reached out to President-elect Donald Trump’s advisers to float the plan.
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(Excerpt) Read more at wsj.com ...
These radical leftists want to squeeze taxes out of your IRAs before you retire. Be wary of them.
If you accept any kind of government tax deferral, you are giving them custody and control of your account until all taxes are paid, anyway. It's a short step for them to just, sort of, take it - and give you an IOU in its place.
They never factored in the possibility of a poop-for-brains disaster like Barack Obama willfully destroying the economy.
You mean like Social Security?
and managed by investment professionals.
... right up to the point that the government thieves need more money and can raid the fund to pay for corrupt programs that don't work.
Too many people don’t get in to 401Ks
People lost money in the 2000’s in market down turns.
Too many companies don’t have 401k plans.
Low interest rates have hurt earnings on 401ks.
Some people don’t invest enough in their 401k to provide for their retirement.
Companies have eliminated their defined benefit pension now that 401k’s are available as a cost savings measure.
People are too stupid to handle investing.
Wall Street makes too much money managing 401k’s
And of course ‘Government could do it better’.
I still have my WSJ subscription but Im not ready this tripe. Lament, Democrat, Blackstone, Social Security. I do not need to see anything else. “Blackstone is not getting enough fees in this low yield era so they have lobbied their friends in government for help under the guise of looking out for the little guy.” Reads much better.
ding ding ding
They would rather you just died so they wouldn't have to pay you.
If you allow Democrat government employees access to your money, they will help themselves to some of it.
ALL OF IT!!!!!
Yah, that’s the ticket!
To see how well that will work just look at how well the state and city pension funds are doing.
I would not trust people who mismanaged Social Security to take over a SECOND source of money.
They can’t even fund gov’t pensions let alone SS.
My parent’s generation (both in their 80’s) will be the LAST generation to have a so called “retirement”. Both parents were in the military and had post-military jobs in the gov’t sector. Both have double pensions and medical benefits.
For us siblings...not so much. We may get an “inheritance” but are not counting on it. We’ll probably work well into our 70’s and die within few years after we can physically no longer work.
Expect a drop in the standard of living and a decreased life expectancy.
Why are you fabricating claims against republicans? Republicans came up with 401s, 403s, IRAs, and Roth IRAs, the best thing that ever happened for retirement investors.
My 401(k) is in company stock. How would the government "take" my money without forcing a divesture of my stocks?
Wouldn't seizing my 401(k) be a de facto nationalization of the company whose stock I hold?
-PJ
401Ks and Roths are the best thing that ever happened for retirement investment firms. Options have gotten better, but forced investment in constrained funds with fees that far exceed returns is hardly the best thing for investors.
Great post. There’s no “lockbox” with trillions in it.
The SS fund were thrown into the budget and used for other things.
Anything that might have been inflationary, life oil, etc. has been taking out of the inflation index so as to give no increases in SS for a decade or so.
You sort of neglected the tax incentive which is why they are so attractive. The Roth IRA is the most attractive of all. How is your savings account doing?
My trading account is doing well. Thanks for asking.
The "matching" contribution from my employer has gotten me 50% ROI before market on most of my plan.
And the tax incentives in a traditional IRA is? Paying more later doesn’t sound like a deal to me.
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