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View Diary: $6.6 Trillion Retirement Savings Deficit Shows 401(k)'s No Replacement for Pensions (47 comments)

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  •  But wasn't this the end game for those that ..... (9+ / 0-)

    proposed this back in the Reagan days?  It was a slick way to transfer the public's money into the private sector investment class for them to play with.  It was the first act to dismantle the New Deal gains.  There have subsequent actions as follow-up, but I won't get in that here.

    Just ask yourself:  How has your 401K done when compared to DOW 500 average over the course of the years?  Percentages -  Same?  Worse, Better??  The better yields were not the ones they offered you at the company meeting when you had to choose the plan, and amounts and risk factor.

    “The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane.” — Marcus Aurelius

    by LamontCranston on Fri Jan 25, 2013 at 06:30:38 PM PST

    •  Yes. (6+ / 0-)

      Exactly.

      The intent was always to siphon wealth out of the middle class into the hands of Wall Street.

      "What could BPossibly go wrong??" -RLMiller "God is just pretend." - eru

      by nosleep4u on Fri Jan 25, 2013 at 06:47:16 PM PST

      [ Parent ]

    •  Tonight's network news lead with stock market (2+ / 0-)
      Recommended by:
      marykk, Oh Mary Oh

      Tis now Higher than just before the crash in 2007 when he whose name cannot be said was Prez.

      I had/have a myriad of choices ranging CD's to Dow 500 to penny stock type mutual funds in my 401K. Don't think that lack of choices was/is that big a problem nowadays.

      It's a lot of people have borrowed against or cashed-out to (as diary notes) "survive." And a lot of people cashed-out because they said Fudge This, I going to Disneyworld. Been there done that.

      •  Yuppp. (1+ / 0-)
        Recommended by:
        Notreadytobenice

        Didn't do it with my IRA, but might have to tap the IRA if I can't get a job soon.

        Still, people WILL say, at some time in their lives, "What's the point?  Why am I saving, and saving, just so some nursing home can vacuum it all up when I finally go senile and start wetting myself?  What's the point of all this suffering if I don't get to do something I want, while I can still enjoy it? "  Because life for most of us is a long haul of perpetual delay of gratification, and it gets REAL tiresome to think that there's nothing else to it except more of the same, forever until they put you in a hospital bed and start attaching the tubes (and the more money in your account when they do that, the longer they'll keep you sedated and tube-fed so they can keep collecting it).

        •  Yup, happens all the time. Boston nursing homes (0+ / 0-)

          are ~$250K/year and up. Our family lawyer sets up trusts. Does it day- in-day-out. That's what' going on when you see a house sold for $1 in the paper. He sayz put everything in the trust except for ~$100K. That gets you into a "nice" nursing home for about half a year after which you go on medi-caid but stay in the nice nursing home.

          One company I worked for PAID for the trust paperwork.
          Oh joy.

      •  You don't need a lot of choices. (1+ / 0-)
        Recommended by:
        Notreadytobenice
        I had/have a myriad of choices ranging CD's to Dow 500 to penny stock type mutual funds in my 401K. Don't think that lack of choices was/is that big a problem nowadays.
        Basic asset allocation means that you can do pretty well with about 8-10 total options.

        Government bond funds (short term and long term)
        Domestic stock funds (small cap, midcap, large cap, dividend focused)
        Foreign bonds and stocks (probably covering at least two continents each).

        Assuming competent management and low expense ratios, that's a pretty damned good selection.

        -7.75 -4.67

        "Freedom's just another word for nothing left to lose."

        There are no Christians in foxholes.

        by Odysseus on Sat Jan 26, 2013 at 09:27:24 AM PST

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