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Ever since the stock market shake up last fall, I have ceased putting my money in a 401K.
I don't control 401K money. If I need it in an emergency, I can't get it without paying a penalty. I can lose the money by the actions of other people. Government can change the rules on how 401K's are administered since taxes are involved.
So the question is - do I trust my money with people I don't know, who may or may not have my best interest at heart? Right now, my answer is no.
The 401K which was supposed to be a supplement to defined pensions has not quite turned out the way they envisioned. Now billions of dollars are locked up (to us anyway) and are at play by the financial institutions holding that money
The only way to get at your 401K is to quit or get fired.
I quit investing in Wall Street (stock market) about five years ago.
I do find it ironic that those with left leanings (Michael Moore and now Arianna Huffington) are suddenly giving chic advice on how to deal with Wall Street. Too little too late....
Wall Street is a freaking strange place! It sort of reminds me of that scene in Alice in Wonderland where she's looking into the glass mirror.
My sentiments summed up from the lyrics to the song of Song, song of the south by Alabama:
"Well, somebody told us Wall Street fell
But we were so poor that we couldn't tell"
from karl denninger, on the economy: (i recommend reading his column daily)
Leave it to the WSJ to report the truth - and then try to paper over it:
Sales taxes declined 9% to $70 billion in the third quarter compared with the year-ago period, the Census Bureau said. Income taxes plunged 12% to about $58 billion. Together, sales and income taxes make up roughly half of state and local tax revenue.
The WSJ then goes on to opine:
State and local tax revenues tend to lag behind the downturns as well as the upturns in the economy because of the time it takes for collections to catch up with depressed store sales and diminished incomes.
This is true for income taxes.
It is absolutely false when it comes to sales taxes.
As someone who ran a registered establishment for more than a decade that was responsible for filing and paying sales taxes (I signed more returns "under penalty of perjury" than I can count during those years!) I can state that it is an absolute fact that sales tax returns are filed and monies are remitted MONTHLY - if there is an upturn in business - an actual upturn - it shows up NOT MORE THAN ONE MONTH LATER in sales tax receipts. Period.
There has been no recovery in final retail demand and the proof is right here in the form of sales tax remittances. (end)
it is equally clear there has been no recovery in employment as well.
what does this mean? it means that the government is now going to find other ways to get at your money, since they are not at all interested in cutting spending (as we have clearly seen). i am equally sure that there will be looking closely at 401k plans for revenue generation.
" The big banks on Wall Street, propped up by taxpayer money and government guarantees, have had a record year, making record profits while returning to the highly leveraged activities that brought our economy to the brink of disaster. In a slap in the face to taxpayers, they have also cut back on the money they are lending, even though the need to get credit flowing again was one of the main points used in selling the public the bank bailout. But since April, the Big Four banks -- JP Morgan/Chase, Citibank, Bank of America, and Wells Fargo -- all of which took billions in taxpayer money, have cut lending to businesses by $100 billion.
Meanwhile, America's Main Street community banks -- the vast majority of which avoided the banquet of greed and corruption that created the toxic economic swamp we are still fighting to get ourselves out of -- are struggling."
If you've got any money left, this is certainly worth a read!
I know several people who have closed their accounts at Chase, Citi and Bank of America- they are fed up. There are many alternatives, to he** with these guys!
from karl denninger, on the economy: (i recommend reading his column daily)
Leave it to the WSJ to report the truth - and then try to paper over it:
Sales taxes declined 9% to $70 billion in the third quarter compared with the year-ago period, the Census Bureau said. Income taxes plunged 12% to about $58 billion. Together, sales and income taxes make up roughly half of state and local tax revenue.
The WSJ then goes on to opine:
State and local tax revenues tend to lag behind the downturns as well as the upturns in the economy because of the time it takes for collections to catch up with depressed store sales and diminished incomes.
This is true for income taxes.
It is absolutely false when it comes to sales taxes.
As someone who ran a registered establishment for more than a decade that was responsible for filing and paying sales taxes (I signed more returns "under penalty of perjury" than I can count during those years!) I can state that it is an absolute fact that sales tax returns are filed and monies are remitted MONTHLY - if there is an upturn in business - an actual upturn - it shows up NOT MORE THAN ONE MONTH LATER in sales tax receipts. Period.
There has been no recovery in final retail demand and the proof is right here in the form of sales tax remittances. (end)
it is equally clear there has been no recovery in employment as well.
what does this mean? it means that the government is now going to find other ways to get at your money, since they are not at all interested in cutting spending (as we have clearly seen). i am equally sure that there will be looking closely at 401k plans for revenue generation.
Wall Street Journal?! Karl Denninger?!
No offense, but i never have nor will i ever follow the WSJ. I don't even consider Karl Denninger's opinions worth my time.
For a second there, i thought you actually had something meaningful to say that we both could relate to.
The 401K which was supposed to be a supplement to defined pensions has not quite turned out the way they envisioned. Now billions of dollars are locked up (to us anyway) and are at play by the financial institutions holding that money
The only way to get at your 401K is to quit or get fired.
Yeah, the do-it-yourself pension plan had its' contributors running around if it were the second coming of the Gold Rush of yesteryears.
I'll even take it a step further, it is, IMO, a big reason why GWB even got elected twice to office. There was this "pull 'em up by the bootstrap" mentality going around at that time due to the 401k. Everyone was a psuedo-conservative investor....
Bascailly why would i get out of wall street markets when that is now I have recovered most of my money.Local banks are not paying enopugh to keepup with inflation. In the end evryone is responsible for their own money and investments. The 401K is nothing different than the old pensions except for the person investing and making decisions.As far the collpase there is plnety of responsiblity to go around both on wall street and main street.
what does this mean? it means that the government is now going to find other ways to get at your money, since they are not at all interested in cutting spending (as we have clearly seen). i am equally sure that there will be looking closely at 401k plans for revenue generation.[/quote]
The House had a hearing last year about the gvt getting involved with 401K plans.If I recall they were making it mandatory to have,and guaranteeing a 7% return.Imagine that,it would most likely end up being a slush for those traitors in DC.They would make Maddoff look like a amateur.
WASHINGTON -- The Treasury Department's surprise Christmas Eve move to uncap the potential aid to Fannie Mae and Freddie Mac should be investigated, lawmakers from both political parties said Wednesday.
Rep. Dennis Kucinich (D., Ohio) said his congressional subcommittee plans to investigate Treasury's decision to lift the existing $400 billion cap on government cash available to the two firms. Separately, Reps. Scott Garrett (R., N.J.) and Spencer Bachus (R., Ala.) called for the House Financial Services Committee to hold a hearing on the matter.
Have any of you thought of putting your money into a online bank. Like ING OR ALLY, AMERICAN EXPRESS BANK, OR DISCOVER, and if any of you have them, are you happy, seems they pay higher interest rates.
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I agree
WSJ -- Wall Street Journal?!
