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Rachel Maddow warns us all about our 401Ks(authorized in 1978). Our nest eggs give us a false sense of security. They are riddled with hidden fees. Everyone needs to see this segment of Rachel Maddow. Meanwhile, don’t be lulled into a false sense of security.
Just a few tidbits about your 401k–it is only worth 76% of what you see. Why? Taxes haven’t been taken out. The 403B is its ugly evil twin (those often have annuity zingers attached that cost you money). That’s if you live in Virginia. Most people who contribute to a plan get some free money. That is good. However, if you don’t get matching funds, you are far better off using an IRA as a retirement vehicle. Why? More choices. Company 401k plans are usually limited in choices.
Pensions, savings and social security were the pillars of retirement. Do you even have a pension? Savings. Has anyone found a savings plan that pays any interest at all? Social Security is continually under fire. Our choices are diminishing.
Are there any ways to keep your retirement from being sliced and diced by Wall Street? You might want to check with an independent financial advisor. Many of us recently got our quarterly statement from the most recent quarter than ended September 30. Some folks are still picking their jaws up off the ground. It was a bad bad hit. Things were going along at a fairly good clip last summer until the debt ceiling debacle. After our credit rating was downgraded, the markets went into free fall and never quite recovered. Your statement reflects what happens when Congress gets into a pissing contest and what brinkmanship can do to your retirement accounts.
Had me excited for a second. So much so that I actually watched the video thinking I’d agree. So in the text you talk about how 401k don’t cover you….why? Taxes….and that’s right! But taxes aren’t Wall St…..that’s everyone’s heros in DC. So Maddow attempts to portray Cain as being incorrect, and saying “I understand the whole personal responsibility thing” like it’s some odd concept. Is Wall St. driven by greed? You bet! But if it fails, let it fail. Instead, our good ole’ government gives these jokers a trillion bucks of debt for our children. And everyone is mad at Wall St. It’s so twisted. Are we really this dumb?
That’s very true, that the taxes part isn’t the blame of Wall Street. That is just something that isn’t explained very well by companies. Everyone talks about how neat a 401k is, and I agree, up to a point. But it really isn’t going to do the job you want it to do just putting in your 5-10% and whatever face value you see, that’s only 76%.
Turning down free money is stupid though.
I do think Cain is wrong insinuating that people who are unemployed are at fault.
At any rate, I think she brought up some important ideas, even if you don’t agree with all of it. If we understand the situation, we are much better able to have personal responsibility.
Retirement is really going to be bleak for a lot of people. I know all sorts of people who have deferred it and I also know a whole lot of people who, because of changes in life’s circumstances, aren’t exactly looking at Happy Acres.
I also left out, anyone opting for a 401k over a pension is nuts. Didn’t McDonnell try to sell that one last year? That goes right up there with…I have a bridge for sale……
Someone needs to invent a different retirement vehicle.
Man….I wish I had a 401K……had to cash mine in
Many people have. Or you could have just lost it. Either way it is gone.