401K & Politics Anyone?

[Kannorsk]

I'm confused how Bush, Clinton, the war, the current market trends, the bailout, and Koolaid have anything to do with analyzing this plan of shifting 401K's into a government control type Social Security system. Take away all blame, party affiliation and look at this plan on it's own merit. Then try to explain how any of this plan is a good thing.

[ianmoede]

All you listed above has to do with 401k's because its based off of things that government, politicians, and market trends effect. And to all you obama-haters, BOHICA. look it up.

[Kannorsk]

All you listed above has to do with 401k's because its based off of things that government, politicians, and market trends effect.

You are referring to market influences on IRA's, that was not my question. My question was on the topic of shifting control of 401K's over to the federal government (see below) and how does one justify it as a good plan.

Powerful House Democrats are eyeing proposals to overhaul the nation’s $3 trillion 401(k) system, including the elimination of most of the $80 billion in annual tax breaks that 401(k) investors receive. House Education and Labor Committee Chairman George Miller, D-California, and Rep. Jim McDermott, D-Washington, chairman of the House Ways and Means Committee’s Subcommittee on Income Security and Family Support, are looking at redirecting those tax breaks to a new system of guaranteed retirement accounts to which all workers would be obliged to contribute. A plan by Teresa Ghilarducci, professor of economic-policy analysis at the New School for Social Research in New York, contains elements that are being considered. She testified last week before Miller’s Education and Labor Committee on her proposal. … Under Ghilarducci’s plan, all workers would receive a $600 annual inflation-adjusted subsidy from the U.S. government but would be required to invest 5 percent of their pay into a guaranteed retirement account administered by the Social Security Administration. The money in turn would be invested in special government bonds that would pay 3 percent a year, adjusted for inflation.
The current system of providing tax breaks on 401(k) contributions and earnings would be eliminated.

http://online.wsj.com/article/SB122477680834462659.html
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[wesheltonj]

One cannot justify it as a good plan in a Capitalist market. One can however justify in a planned central society. ie: to each according to their needs. . . Karl

[captexas]

Um. . . Obama was mentioned because . . um, he could be the next president of the US and one of his many plans along with the other Obama coat tail riding democrats could include this doing away with private 401k plans to turn it into another up government owned, citizen funded program. They ruined our social security program, so why would anyone trust them to magically do better with this? Especially as both sides helped mess up the housing and financial conditions in our country. Add a $700 to $800 billion dollar bail out that hasn't done anything so far other than give banks money to keep to themselves. A major part of the constitution was written to limit government, not allow it to control every part of our lives. Freedom means being allowed to choose for yourself what you do, especially with your own hard earned money. From what I heard of this proposed plan, they are dangling a few carrots in front of people thinking they are dumb enough to bite, and there are some out there that will. Everyone else needs to think about not only what they will be getting up front, but what they will really be losing in the end.

[brewercm]

Ask any financial adviser out there if it is a good idea to put "all" of your savings into an account that would earn at a rate of 3% annually and see how long it takes for him/her to get up off the floor from laughter. Not to mention you're trusting the government to do this for you. The same government who has ruined the so called guaranteed Social Security system because they can't keep their little hands out of that pot of gold at the end of their self created rainbow.

[Joshua]

I'm putting my money under my pillow, of course I only have about $20 to save so it'll fit nicely.