Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
See this is the problem when people don't understand the details. The statement above is entirely false and just deals w/generalities.
The push to privatize SS was for younger workers and only allow a PORTION to be privatized (rougly 5% of their portfolio). Obviously if you know you have a long time horizon and only a portion can be put into equities, your risk on the high or low side is minimized. OLDER workers would not have been affected.
People think that automatically people were going to put 100% of their entire SS into equities. THAT IS NOT THE CASE AND WASN'T ON THE TABLE.
When are people stop going to make statements when they don't understand what their talking about.
If you are a young worker w a 20-30 yr window, you'd be foolish to not want to privatize your SS. Would I be able to generate a higher return than Govco over 25 years? Absolutely IMO. Also, this push by dems in the house to take the deductino away from 401k's is ludicrous...
Just another reason why we've already gone down the socialist route in this country.
i want all MY money privatized not some of it
and yes i realize i would be down this year
ill take my chances over 40 years
People were also thrown out of pensions and put into 401K's and the very same thing happened. 401K's have lost between 30-40% of their value now whereas a pension is fixed.
If you are young then you have time to recoup but if you are within 10 years or so of retirement..your plans have just changed (for the worse).
HT,
Here's the thing. If you have to start drawing money from your 401k within 10 years, you prob shouldn't of been more than 50/50 in terms of stock/bond ratio this year. Granted, I do understand that the boomers have taken a hit, but if you've taken a hit, you should've had the gains in the first place from all the years of compounding interest in a defined benefit plan.
i want all MY money privatized not some of it
and yes i realize i would be down this year
ill take my chances over 40 years
That's my feeling also. I wish 100% could be privatized, however it will never happen. Look at all the mis-information and fear that's been spread from just the idea of a fraction to be privatized.....
I guess Govco can do better managing my money than me....
Here's the thing. If you have to start drawing money from your 401k within 10 years, you prob shouldn't of been more than 50/50 in terms of stock/bond ratio this year. Granted, I do understand that the boomers have taken a hit, but if you've taken a hit, you should've had the gains in the first place from all the years of compounding interest in a defined benefit plan.
Yes you are right..the closer to retirement the more conservative your investments should have been. But the popular financial magazines (Kiplingers and Money for example) were starting to change their outlook saying that bonds couldn't keep up with inflation and that more risk should be placed in equities. I thought that was some pretty dangerous advice then and I still do.
I myself got out of equities in my 401K last year right after Bear fell.
Made over 3% profit this year so far BUT I preserved all of my principle and that means more to me today than a measly 3% profit.
We have not seen anything yet as far as creeping socialisim. Just wait until the house and senate go to the left and Obama gets elected. Sad, but maybe we need a dose of Karl Marx to wake us up. Problem is, most countries that go that far rarely get their country back.
Pelosi, Reid and company are salivating at their expected Obama win. Not only will they have a far lefty in the Oval Office, but they'll have an inexperienced one, too, who will need their hands-on tutelage! There's still time to stop this, folks!
I heard on the news last night that one of the big car manufacturers (can't remember if it was Ford or Chrysler) has stopped contributing to workers' 401K plans. When one large company does something like this, the rest will take a look at following suit. This would play right into an entirely Dem-government's hands to create some sort of government program like the one described.
Pelosi, Reid and company are salivating at their expected Obama win. Not only will they have a far lefty in the Oval Office, but they'll have an inexperienced one, too, who will need their hands-on tutelage! There's still time to stop this, folks!
I heard on the news last night that one of the big car manufacturers (can't remember if it was Ford or Chrysler) has stopped contributing to workers' 401K plans. When one large company does something like this, the rest will take a look at following suit. This would play right into an entirely Dem-government's hands to create some sort of government program like the one described.
It was GM that stopped with the matching contributions. They said "temporary suspension" but didn't say for how long.
Waiting to see what other big Corp. will jump on this bandwagen.
It was GM that stopped with the matching contributions. They said "temporary suspension" but didn't say for how long.
Waiting to see what other big Corp. will jump on this bandwagen.
Thanks for the clarification and the link! It seems like once a benefit goes by the wayside, it's difficult to get it back. For the workers' sakes, I hope it is just temporary but I really doubt it.
Yes you are right..the closer to retirement the more conservative your investments should have been. But the popular financial magazines (Kiplingers and Money for example) were starting to change their outlook saying that bonds couldn't keep up with inflation and that more risk should be placed in equities. I thought that was some pretty dangerous advice then and I still do.
I myself got out of equities in my 401K last year right after Bear fell.
Made over 3% profit this year so far BUT I preserved all of my principle and that means more to me today than a measly 3% profit.
I went against my conventional wisdom to "stay the course" because I couldn't stomach the heavy losses and bailed several weeks ago. I know that goes against all conventional wisdom for young investors, but whether it was because I didn't have big enough ones or whatever, I'm now sitting on the sideline in CD's waiting to jump back in. (I got out about 10% above where we are now)....
I don't feel Im in any rush right now because 1. The housing mess is just going to pump more and more negative news which I feel will keep the market going sideways w/wild swings at best. 2. I just think there's going to be a lot of negative news in the short term.....
Again, I should be gung ho 100% back in equities right now, I just can't though....I'll probably tip toe early next year most likely...we'll see.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
