VIDEO ON MSN MONEY
Totally BS, it was designed to allow Corporations to get away from providing great Pension Plans. So as the elite reward themselves with Record Wealth, they are ripping off the Workers in the process. The Race to the Bottom continues. However if your Employer matches dollar for dollar, take it the the Max.
Worked for many years in a small group practice with a very practical outlook on our 401K.
1) High earners can only maximize contributions by maximizing participation by lower earners.
2) Lowers earners will only participate if they understand the process. Our answers?
Generous match. Company pays administrative fees, not participant. Low cost panel of mutual funds (we used Vanguard for decades). And lots of education and encouragement.
Didn't always work, of course, but you can't help if you don't try...
Do we really want the goverment managing more retirement money? What is to stop them from steering funds to T-Bills when they need a loan?
People need to be held accountable for themselves and only then will we see an improvment in retirement savings.
The military still provides a pension after just 20 years of service. If you want a pension then enlist in the military and serve 20 years.
I'm not a fan of automatic enrollment nor automatic contribution escalation. It's my money so it should be my choice - not forced upon me. I'm not saying that 401(k) programs are bad - I'm saying that I want to make my own investment choices.
My employer sent me an e-mail with much fanfare about how they were automatically enrolling me into a 401(k) plan that they'd picked. Other than the name of the provider, there were only vague details about what made up the portfolio. I checked the provider's web site and couldn't find our plan name listed. When I called and asked (after a long hold) I was given a run-around and an attitude of "trust us". Sorry but I don't invest blindly and I don't trust salesmen.
I was assured that I could opt out easily, and they did provide instructions. But I found that those instructions did not work - the website menu selections did not exist. I called again and they admitted that I actually had to opt out with them over the phone, followed by a notarized letter! They purposely make it hard for us to get their hands out of our pockets.
Since then I got the cold shoulder with every interaction with my employer. They said I'm not a team player (since I wouldn't be one of their sheep). But they were just a contracting agency so I changed agencies. I wonder how much kickback they were getting?
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.
[BRIEFING.COM] The stock market capped the trading week with losses across the major averages. The S&P 500 fell 0.5% to surrender its weekly gain, while the Dow Jones Industrial Average (-0.7%) and Russell 2000 (-0.9%) underperformed. The two indices posted respective losses of 0.8% and 0.6% for the week.
Equity indices were pressured from the get-go after several heavyweights disappointed the market with their earnings and/or guidance, which led to some broader profit-taking. After ... 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'