Today...say goodbye to your 401k (safe, moving, to eat)

[dman72]

The tea party turned the non-issue of raising the debt ceiling into a huge political circus.

Part of why S&P downgraded is because of the debt, but their spokespeople also said that they fear gridlock in Washington due to the polarization of the 2 sides is their biggest fear because there is no potential for any policy to be enacted.

The tea party "no tax increases ever" idealogues make up half of the Republicans in Congress, and the Republicans control one house. That one faction turned the debt ceiling into the fiasco that we had over the last few weeks. The Bush tax cuts should have been repealed (I'd be paying more too) months ago but the Republicans said they would filibuster when Obama suggested it, so he caved.


You should all be happy to know that we created a crisis over 2% increase on taxable income over 250K. This is what happens when you elect hard core idealogues to public office.

Keep listening to Glenn Beck Americans.....his gold scheme is going to make him a very rich man while your country collapses.

[MikeyKid]

There are elements of the GOP baggers who went on record they wanted to default when the whole circus started. These same people voted against the compromise deal and would have liked to see it not pass.

The ratings agencies are as broken and crooked as they come, but it doesn't change the fact that if these political arse clowns weren't out voted the US would have missed payments.

It's like giving your car keys to a 12 year old and sending them to the store to food shop and "get what you need"... If they even make it back, they'll have loaded up on junk because they simply don't get it. They don't understand what it means to take on even the slightest serious responsibility and the concept of consequences means little to them.

[dman72]

Originally Posted by MikeyKid

There are elements of the GOP baggers who went on record they wanted to default when the whole circus started. These same people voted against the compromise deal and would have liked to see it not pass.

The ratings agencies are as broken and crooked as they come, but it doesn't change the fact that if these political arse clowns weren't out voted the US would have missed payments.

It's like giving your car keys to a 12 year old and sending them to the store to food shop and "get what you need"... If they even make it back, they'll have loaded up on junk because they simply don't get it. They don't understand what it means to take on even the slightest serious responsibility and the concept of consequences means little to them.

Exactly. They hate the government and want to see it collapse. "Starve the beast" was their prerferred method, they would have loved a straight up default. If you think what is going on now is bad, what would have happened if the debt ceiling increase hadn't happened?

[workingclasshero]

since most of my 401k is from when the dow was at 2k and I added big time in 09 when it hit 6k, it is still up

if you ONLY inversted when it was 12k-14k..then you might be hurting right now...but it will go up again

the dow is STILL up 9% from a year ago

401k's are NOT SHORT TERM

[scottzilla]

Isn't the S&P the same dudes that gave all the banks A+ ratings prior to the banking scandal?

I'm tired of my future being gambled away by unknown forces stealing from me.

[Wes927]

The recent happenings in the stock market are of no negative significance if you have more than 10 years to retire. When you have less than 10 years to retire, you gradually put your money in safer investments--or just keep all your retirement in a target date fund.

In fact, every time the market drops more than 10 percent, I increase my contribution.

I wish more had pensions (I am lucky enough to have both) but there's no reason for alarmism/trashing of 401k/403b IMHO.

[Gpsma]

Very true....and those with less than 10 years to go should have moved to a safer mix of investments by now. However, the sheeple see the market go up and they are jumping in to move their savings to higher risk assets so they dont miss out...then a week like last week comes and they are bailing out.

[FrmlyBklyn]

Originally Posted by haywood16

.....and to think there are still rocket scientists on here suggesting a 401k should replace pensions for the majority of workers.

Unbelievable!

Perhaps if you maintained a sensible allocation one would worry less.
If you care to invest solely in equities, may I suggest a more convienent and suitable location - Mohegan Sun, the craps table, roll the dice. That is essentially what many folks have done with their retirement plans.

[Gpsma]

Originally Posted by FrmlyBklyn

Perhaps if you maintained a sensible allocation one would worry less.
If you care to invest solely in equities, may I suggest a more convienent and suitable location - Mohegan Sun, the craps table, roll the dice. That is essentially what many folks have done with their retirement plans.

Many?...I would say that most self-directed 401 plans have participants selecting a balanced allocation of investments. Of course, you will get those who select inappropriate allocations..either too conservative or too aggressive.

[FrmlyBklyn]

Originally Posted by Gpsma

Many?...I would say that most self-directed 401 plans have participants selecting a balanced allocation of investments. Of course, you will get those who select inappropriate allocations..either too conservative or too aggressive.

A balanced allocation? Ha! Just take a look at some of those Target funds being shopped to 401 k participants - waaay too risky. Yeah, diversified - mixed into a portfolio of investments managed by the same firm, charging way high expense ratios and laughing all the way to the bank.

Those who invest in company stock are not balanced. Those heavy in international/emerging markets are not balanced either. The level of risk selected (conservative or aggressive) is not the result of a balanced allocation. A balanced allocation would account for level of risk, to say many participants have a balanced allocation while experiencing while swings due to being aggressive or conservative is quite a stretch.