General Discussion

badtoworse

(5,957 posts)

5. My sense is that the big problem with 401k's is that participation is voluntary

Mon Sep 16, 2013, 03:57 PM

Sep 2013

Participation should be mandatory at some minimal level (8% - 10% of base salary) and optional above that. Companies should be required to match the employees contribution up to some level (at least 3%). All of the companies for whom I've worked matched at least 3% of the contribution which is a strong motivation to participate. I could never understand people not participating at a level that got at-least the maximum match - it's free money.

I've been in 401k's since the mid-80's and all of the plans I've been in had at least one or two conservatively managed balanced fund that held both stocks and bonds. They would be good investments for someone not well versed in managing investments. Some plans I've seen had funds that targeted a particular retirement date and balanced the portfolio to be appropriate for a person planning to retire in that time frame.

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How America�s 401(k) Revolution Rewarded the Rich and Turned the Rest of Us Into Big Losers [View all] xchrom Sep 2013 OP

I see a different byproduct of the 401k, that soem people scoff at wercal Sep 2013 #1

Executive pay is out of whack mainly due to Bill Clinton Bunnahabhain Sep 2013 #2

I tend to agree gopiscrap Sep 2013 #4

I think maybe the word you want is "averse"? Jackpine Radical Sep 2013 #51

yup, you're right. English is not my original language gopiscrap Sep 2013 #52

Well, native speakers are always screwing things up Jackpine Radical Sep 2013 #53

I was born in Germany gopiscrap Sep 2013 #54

My mother was born to German-speaking immigrants. Jackpine Radical Sep 2013 #55

I love it! gopiscrap Sep 2013 #56

Currently in the country near Chippewa Falls, which is near Eau Claire. Jackpine Radical Sep 2013 #58

I've been to those places gopiscrap Sep 2013 #59

I spent a lot of years in school at Madison. Jackpine Radical Sep 2013 #62

He should also be horsewhipped for allowing the repeal of Glass Steagall. Squinch Sep 2013 #26

It also funded Hostile Take Overs FreakinDJ Sep 2013 #28

Another way to look at it, is the millions of dollars once WestSeattle2 Sep 2013 #3

My sense is that the big problem with 401k's is that participation is voluntary badtoworse Sep 2013 #5

Some companies out there, and mine is one, SheilaT Sep 2013 #8

That is very wise; keep doing it. badtoworse Sep 2013 #9

From my side Hydra Sep 2013 #30

The big problem is they are completely inadequate and inferior in every way to pensions. duffyduff Sep 2013 #33

Unfortunately, pensions aren't coming back badtoworse Sep 2013 #36

CORRECT Skittles Sep 2013 #41

Unless that pension is from one of the many companies that have gone into bankruptcy hughee99 Sep 2013 #44

And if you lose your job and can't get hired again or take a giant cut? Well, there it goes. duffyduff Sep 2013 #34

If the same thing happened and you weren't vested in a pension plan, you'd be in worse shape badtoworse Sep 2013 #38

+ underpants Sep 2013 #6

Someone else finally gets the 401k lie... Evasporque Sep 2013 #7

The first time I heard the 401k hard-sell, I sensed it was bullshit Orrex Sep 2013 #11

I have been calling b.s. on 401(k)s for thirty years duffyduff Sep 2013 #35

"Fund managers make tens of millions" A HERETIC I AM Sep 2013 #46

My parents did not earn a lot of money. They really struggled. JDPriestly Sep 2013 #10

I'd rather gamble my money in Vegas than on Wall St. CrispyQ Sep 2013 #63

Agreed! JDPriestly Sep 2013 #65

401ks also turned citizens against their own public workforce. SleeplessinSoCal Sep 2013 #12

401 k's are Wall Street snake oil. JEB Sep 2013 #13

It wouldn't have been created if it hadn't rewarded the rich. nt valerief Sep 2013 #14

You guys do realize Jimmy Carter signed this law Bunnahabhain Sep 2013 #15

what 'we' realize is that both political parties have had the fingers in the process of fucking the xchrom Sep 2013 #16

So you feel Jimmy and the 95th Congress Bunnahabhain Sep 2013 #17

i hink president carter was a good president -- xchrom Sep 2013 #18

It got thread jacked Bunnahabhain Sep 2013 #19

'free trade' is also a 'liberal' idea. xchrom Sep 2013 #20

You are 100% incorrect. Bunnahabhain Sep 2013 #25

There's no reason not to have a 401k, but DEPENDING on it is a disaster. SleeplessinSoCal Sep 2013 #21

I never said DEPENDING on it was wise Bunnahabhain Sep 2013 #24

You asked if Carter created a "boondoggle". SleeplessinSoCal Sep 2013 #29

That's Washington for you. They left a loophole a mile wide for companies to exploit. duffyduff Sep 2013 #32

401k's aren't loopholes! SleeplessinSoCal Sep 2013 #40

401K's and IRA's were not intended to replace defined benefit pensions. LongTomH Sep 2013 #22

I did not say 401ks were intended to replace defined benefit pensions Bunnahabhain Sep 2013 #23

My statement was intended as historical background, not as a personal attack! LongTomH Sep 2013 #27

That's like saying "Cell phones are the cause of NSA overreach" SleeplessinSoCal Sep 2013 #39

I did not attempt to identify "the problem" Bunnahabhain Sep 2013 #42

It's here in black and white . . . SleeplessinSoCal Sep 2013 #45

You think that was me saying it was a problem? Bunnahabhain Sep 2013 #47

Apology accepted. SleeplessinSoCal Sep 2013 #49

Worth a thousand K&Rs duffyduff Sep 2013 #31

I think I asked before Lurker Deluxe Sep 2013 #61

One of the great fleecing schemes of all time. marmar Sep 2013 #37

Right on ^^^^^^ sarcasmo Sep 2013 #43

K&R. Our resident right wingers and their sophomoric arguments crack me up. nt PETRUS Sep 2013 #48

i'm investing in cat food. nashville_brook Sep 2013 #50

K&R Jefferson23 Sep 2013 #57

K&R YoungDemCA Sep 2013 #60

401k's are an accident of history, policy makers didn't decide anything. Sen. Walter Sobchak Sep 2013 #64