VIDEO ON MSN MONEY
This article brings out a number of very valid points. The Defined Benefit system didn't go away because it wasn't a sound system. It went away solely because of governmental intervention with legislation such as ERISA and AFFIRMATIVE ACTION. Legislation not only increased the costs of administration, but it also added a great deal of volatility to the stability of employment.
For employers, DB plans administration and funding became unaffordable as investment returns became far less predictable. For employees, employment volatility generally meant that they didn't have enough single employer seniority to gain any benefit from DB plans.
The result is that more employees work for small firm employers than ever before. Most of these small employers were forced to start their business as the larger firms they worked for terminated their positions during the economic downturns over the past 30 years.
The present system is confusing for employees and a real challenge for their advisors. The more money that is printed by the U.S. Treasury, the more the money we have in our pockets is devalued. Some investments will retain their value better than others, but the uncertainty of our situation (which Congress apparently is determined to ignore) adds additional market volatility.
Given our present economic environment, even professional advisors cannot say with ANY degree of certainty how much we will need for retirement tomorrow. At best, we can only say what is needed for the present.
However, one thing is certain. We must save and invest or we will have nothing! The question now is... 'What should we invest in?' and 'How much liquidity do we require.' Some investments, unlike currencies, are always worth 'something'. Governmental forces though, are legislatively seeking every venue they can to 'seize' whatever 'property' the citizenry has that is of any value.
Put your money in mason jars and bury it in the back yard.You will be better off in the long run.
Never trust other people to handle your money.People see a chance to take it and they will. As a matter of fact ,they already have.And will continue.It ls greed ,you know.Take a look at the guy above this article.He looks like he is a member of the 401 k. WHY DOES HE LOOK LIKE HE IS GOING TO CRY??????????Greedy system has took him for a ride.
I do believe companies should increase their matching contributions. Since many do not want the liability of a pension, a 401-K makes book keeping easier and cleaner.
Maybe if the government would pass a law to remove any liability to companies that talk about the investments available in their 401-K's the companies would feel more obligated to help people invest better.
My wife and I have a nice 401-K amount and have been taking money out monthly to be added to our social security and we have a comfortable life style.
It can be done, but you will not be able to have all the vacations and toys you want all your life.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
- Precious metals traded higher today as a weaker dollar index boosted prices.
- Apr gold rose for a third consecutive session and climbed as high as $1371.30 per ounce in late afternoon pit trade. It settled at $1370.60 per ounce, booking a gain of 1.8%.
- May silver came off its session low of $20.95 per ounce set moments after floor trade opened. It touched a session high of $21.43 per ounce and settled with a 2.6% gain at $21.36 per ounce.
- Apr ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'