Posted on 01/02/2017 11:45:22 AM PST by abb
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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.
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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 ...
Just think of the wonderful things they could do with that money!/s
Oh HELL no!
It would work fine...until Congress raids the fund to pay for another war on poverty, or war in Vietnam, or war on drugs, or war on terror. or...
Been there, done that, got the debt.
I used to be the plan administrator where I worked. People were always co ing in wanting to take out some of their 401(k). I had it printed out what situations they could take a distribution or loan, and told them that I would have to have
proof to keep in my files.
“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.”
Ms. Ghilardcci went on the say that her new mandatory “savings” plan would be named “Social Security Deux”.
I put a lot in my 401(k) for years when I lived in CA and was in a high tax bracket. I moved to TX, where there is no income tax, and now I’m in a lower Fed bracket, so I saved a lot in taxes now that I’m getting distributions.
CA tried once to force people that worked in CA and then moved to another state to pay CA tax on their retirement distributions, but it was shot down by ERISA.
We’re experts...
I pay into the railroad pension fund. Instead of the 6% or so that you pay into SS, I pay in 11% out of every paycheck, with no employer match. I stopped my 401k after losing all of the gains in 2000 and 2008.
And yet, that POS paul ryan and his RINO/leftist looter buddies wanted to confiscate all of the money in the railroad retirement fund, and roll it into SS.
The RRF is administered and paid for by railroad employees. We’re exempt from SS because the railroad pension predates SS.
If the feds want to confiscate that, then they also have their sights set on your 401k and IRA plans.
“...a mandated, government-run savings system that would be administered by the Social Security Administration and managed by investment professionals.”
Uh...how about...Oh, Hell No!
The notion that government does ANYTHING better than the private sector (apart from national defense) is simply WRONG. History bears that out.
Social Security was a Fed Sanctioned Ponzi scheme. A private citizen crafting the same model would be in prison.
And, these a$$clowns now want an obligatory, mandated savings program? No.
Hitlery said she was going to nationalize our 401k’s but she lost so the minions and RINOs are going to try for it. They had better be sure to make their guards are exempt or their tax paid Caligula like orgy may end like his.
She’s on my Airport List.
L
The 401(k) is the worst thing to happen to the American worker.
It pumps money into funds that pumps money into the stock market that forces companies to scramble to meet their expectations, and they cut expenses to drive up efficiencies...which will result in employees getting laid off.
If the average American was able to invest the 14% that was taken out of his paycheck over his lifetime by Social Security, (7%, employer, 7% employee), he would be able to retire without financial concern in his 60’s. Social Security is a government run Ponzi scheme.
I retired on 31 December. I immediately pulled out my 401k and put it into an IRA.
You got it wrong! They will help themselves to all of your hard earned money!
Yes, instead of 1%, it’s the govt, so their management fee just happens to be 100%!
But then they let you apply for Section 8 and food stamps, so losing your 6-figure 401(k) really won’t be so bad...!!
Thanks, Teresa. Really.
bmp for later
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