But...But...what if I don't want to play in the wall street casino???

okay, so I understand, there's alot of people withdrawing their money from the 401's and such.. because well, they need the money, or maybe because they've come to the same conclusion as I have....the whole system is a shame and it's gonna come crashing down before the last of the baby boomers...(that's me!!) reach retirement age. many companies have dropped the idea that they should be matching the contributions....so, well....please, explain this one???

More employers mandate 401(k) enrollment

More employers are mandating enrollment in 401(k) retirement plans, a report released Tuesday said.

The percentage of employers that automatically enroll workers in 401(k) has increased dramatically to 38%, according to financial services company Charles Schwab (SCHW, Fortune 500). This is more than seven times the rate in 2005, when automatic enrollment was at 5%.

money.cnn.com...

gee, we can't afford the health insurance, so well, the ptb just decide to force us to participate in that scheme....and now, well, looks like they intend to force us to participate in this scheme here also??
could they make it any more obvious??

Besides this little tidbit, we are forced into the casino anyway, through our tax-dollars. Eitherway, we are forced to roll the dice and the sad thing, even if those dice land on the right number, we can't partake in the winnings.

We have lost effective control of our fate a long time ago and now we are only paying the consequences for handing that control over. Blame the generations before our own and to some extent, we should blame ourselves for not only allowing this kind of thing to happen, but being apart of it by operating the "machine", willingly.

--airspoon

Your not "forced" to do anything.

Automatic enrollment means that the company opens a 401K for you on the day you begin employment. They put money into it regardless if you want them.

You have the choice as to whether you contribute to the account or not. Most companies match the funds you put into it. Some companies just put a set amount in.

My point is that you don't have to participate. No money will some out of your check.

Of the employers who automatically enroll their workers in a 401(k), some 37% also require automatic savings increases. This type of 401(k) plan might start at 3% for an employee, but the employer automatically adds another percentage point the following year. This practice has more than doubled from 14% in 2006 -- when Schwab clients first implemented the strategy.

The practice of automatic enrollment is important in today's economy as it ensures employees will save for their retirement. This is a particularly difficult thing to do during a recession when money is tight. In fact, based on Fidelity Investments' report that came out last week -- there has been an increase in the number of people withdrawing from their 401(k) savings accounts despite steep penalties.

maybe it depends on how you read it??

because I am not reading it the same way as you are...

It appears to me as if this is another means for corporations to move money around , ie cook the books, under the guise and protection of the tax incentives and tax free status of 401ks.

If one looks at how corporations pay taxes, simply put, it is categorically income after all expenses have been paid.

401K contributions, being benefits would categorically belong to expenses, reducing the overall tax burden of the company.

This is why they are making the 401k "contributions" for you.

It really doesn't surprise me at all.

Coincidentally, when leaving my last company in 2006, I closed out my 401k with $121K withdrawing it all and investing it into gold bullion coins, American Eagles, Canadian Maple Leafs, Australian Lunar Coins, Austrian Philharmonics, which have since doubled in value due to the price of gold relative to the Dollar.

Some have even more than doubled , due to their numismatic value.


I had left $36. in the 401K account with JP Morgan in order to keep the account open as well as assessing my return on investment.
I wasn't expecting much here....BTW.

About a month ago, JP Morgan sent me a letter stating that they were closing my account due to inactivity (boohoo) and have since closed the account sending me a check for the remaining balance for the amount of $27.10

So $36 4 years ago is now worth $27.10 today according to my 401K.

Which translates to: - 25%

And that doesn't even take into the account the losses due to inflation !

Some retirement income huh ?

they don't want it to provide you a a retirement, they want your money, now, to play with.....

they make the bets, get most of the rewards when things are going good, and well, hitting with for the losses when things go bad....

I don't see how the people can win with this kind of set up going on.

I don't do the markets, don't care. the big players are winning, no matter what happened... and the small players are losing usually, no matter what happens.

[edit on 24-8-2010 by dawnstar]

[edit on 24-8-2010 by dawnstar]