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Old 12-10-2016, 04:12 PM
 
1,190 posts, read 659,175 times
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Secure Choice
http://www.latimes.com/business/la-f...nap-story.html

Signed into law the end of Sept 2016. Just curious what you all think about this so far.

It allows typical Californians whose employers have5+ employees -and- DO NOT offer a typical retirement plan, to participate in this State Retirement Plan called Secure Choice. From what I gather, you can opt out.
Otherwise they will likely take 3% of each paycheck to deposit to a ROTH IRA Account. Penalty free withdraws after age 65 with a few exceptions beginning at age 59 1/2 for certain expenses.

I have a 401k I'd like to roll over from my second employer (still employed) later on... to get tax free distributions in my Senior years
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Old 12-10-2016, 04:27 PM
 
Location: Florida
4,365 posts, read 3,700,708 times
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What was wrong with using an IRA or ROTH?

What are the fees charged to each employee?

How good are the investments.
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Old 12-10-2016, 04:39 PM
 
Location: SoCal
13,229 posts, read 6,331,374 times
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I don't remember voting for this law.
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Old 12-10-2016, 04:47 PM
 
1,190 posts, read 659,175 times
Reputation: 1021
Quote:
Originally Posted by NewbieHere View Post
I don't remember voting for this law.
You didn't vote for it. It went to committee, passed, to house, then passed, then to senate, so passed house and senate then to governors desk. Governor Brown signed into law. Something akin to that
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Old 12-10-2016, 04:50 PM
 
1,190 posts, read 659,175 times
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Quote:
Originally Posted by rjm1cc View Post
What was wrong with using an IRA or ROTH?

What are the fees charged to each employee?

How good are the investments.
The first three years not so good because they will be working it out.

They will invest in safe bank securities like treasury bonds which yield 1% or less.

1% would be high to manage this so the fees plus little interest accrued will likely come out as a wash.
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Old 12-11-2016, 07:38 AM
 
Location: Florida
4,365 posts, read 3,700,708 times
Reputation: 4105
Quote:
Originally Posted by NancyDrew1 View Post
The first three years not so good because they will be working it out.

They will invest in safe bank securities like treasury bonds which yield 1% or less.

1% would be high to manage this so the fees plus little interest accrued will likely come out as a wash.
Thus inflation will make the "investment" a loser. The investments can not be in instruments that will not grow as they approach retirement. Seems very misleading to tell these wage earners that they have a good government retirement plan when they could do better in a ROTH or regular IRA.

In short they have to save more than a dollar to day to pay for there expense in retirement. Thus they might need to set aside 30 years of living expenses. If they are low wage earners how can they afford to save this much?
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Old 12-11-2016, 08:52 AM
 
Location: SoCal
13,229 posts, read 6,331,374 times
Reputation: 9844
They have problem investing for CALPERS so why take in more.
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Old 12-11-2016, 08:57 AM
 
Location: Seattle/Dahlonega
547 posts, read 388,387 times
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Withdraws after 65?
No thanks.
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Old 12-11-2016, 09:00 AM
 
Location: SoCal
13,229 posts, read 6,331,374 times
Reputation: 9844
That just means small business is going to stop hiring after 4-5 people. Some can barely survive.
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Old 12-11-2016, 12:51 PM
 
Location: Backwoods of Maine
7,116 posts, read 8,156,220 times
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Quote:
Originally Posted by NewbieHere View Post
They have problem investing for CALPERS so why take in more.
Quite likely the whole idea behind it is to help bail out CALPers.
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