tag:blogger.com,1999:blog-293433952655399056.post8942627385921837400..comments2024-03-06T04:35:38.806-06:00Comments on Disaffected and it Feels So Good: 401(k) amounts to Businesses Taxing your Income and to Grand Larceny of your retirement savingsGrung_e_Genehttp://www.blogger.com/profile/01894879088472559055noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-293433952655399056.post-83236803748826178322014-04-14T00:04:33.534-05:002014-04-14T00:04:33.534-05:00Oh and Chickenhammer congrats on catching a Fish t...<i>Oh and Chickenhammer congrats on catching a Fish this ))///////////////////////// big.</i><br /><br />And <a href="http://www.candyindustry.com/ext/resources/KISS-L.jpg" rel="nofollow">kisses</a> to you too Gene. :) There's a reason I'm generally happy and your crew is most often angry.ChickenHammerhttps://www.blogger.com/profile/10228053200668293249noreply@blogger.comtag:blogger.com,1999:blog-293433952655399056.post-33455746622000270582014-04-13T19:58:53.400-05:002014-04-13T19:58:53.400-05:00The real purpose of a 401K is to lessen the liabil...The real purpose of a 401K is to lessen the liability of the company. It is sold to the employee as a means of giving them more freedom over their retirement. In reality, it exchanges security with uncertainty for the employee.<br /><br />It takes what was often a well defined guaranteed retirement plan and turns it into a stock market gambling scheme. For the company, however, it turns a long term fixed liability into a short term, flexible liability at often substantially reduced cost. <br /><br />True, the company often makes a 50%, 100%, or sometimes even a 200% matching contribution. But, because the severely limit the employee contribution to a few percent of their total salary, the actual cost to the company is a few percent of their total payroll. Plus, if the company decides that they are contributing more than they want to, they can change the percentages and they often do. If they want to contribute less next year, they can. And when they do, the company increases its profits, and the employees lose retirement funds. <br /><br />The one thing you never see is the company saying we are reducing our contribution to your retirement plan by $1000 per year and increasing your salary by $1000 per year. What happens instead is that the top management of the company receive large bonuses because they increased profits, even when it is at the expense and paid for by the employees.<br /><br />Jerry Critterhttps://www.blogger.com/profile/01870618647449723147noreply@blogger.comtag:blogger.com,1999:blog-293433952655399056.post-14929151229569852152014-04-13T17:57:18.006-05:002014-04-13T17:57:18.006-05:00As Jerry C, pointed out 401(k) is a Casino operati...As Jerry C, pointed out 401(k) is a Casino operation. <br /><br />While an individual <b>may</b> have an account which makes big returns the Fees, accounting and consultation costs are designed to siphon off money for nothing. <br /><br />The House always wins in the <b>aggregate</b><br /><br />Oh and Chickenhammer congrats on catching a Fish this <b>))/////////////////////////</b> big. Grung_e_Genehttps://www.blogger.com/profile/01894879088472559055noreply@blogger.comtag:blogger.com,1999:blog-293433952655399056.post-41744655639924095272014-04-13T10:44:02.446-05:002014-04-13T10:44:02.446-05:00LOL! My 401(k) is worth many multiples of what I&...LOL! My 401(k) is worth many multiples of what I've put into it. I saw 40% growth over 2013 while paying 0.5% in quarterly fees. QE has kept the market profitable and will continue to do so until Yellen starts tapering. When things change the firm that manages my account will re-allocate and I'll continue to earn.<br /><br />My 401(k) quit sucking when I quit trying to manage it myself.ChickenHammerhttps://www.blogger.com/profile/10228053200668293249noreply@blogger.comtag:blogger.com,1999:blog-293433952655399056.post-57781400263204613312014-04-13T09:49:44.005-05:002014-04-13T09:49:44.005-05:00At various times while working I had company spons...At various times while working I had company sponsored 401Ks. Not once did the account earn more interest than the fees charged to manage the account.Kulkurihttps://www.blogger.com/profile/09198195648066700925noreply@blogger.comtag:blogger.com,1999:blog-293433952655399056.post-79903898653251362622014-04-12T17:34:48.310-05:002014-04-12T17:34:48.310-05:00401K and IRA fees are kind of like a pot rake in p...401K and IRA fees are kind of like a pot rake in poker. The house always gets its cut whether you win or lose. And unless new money enters the game, ultimately the house ends up with most of the money.Jerry Critterhttps://www.blogger.com/profile/01870618647449723147noreply@blogger.com