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Originally Posted by jIM_Ohio
To me I read the article and there is a huge bias (calling the plans failures).
Yet I think most who use the plans
a) save less than 15% of their gross income per month (in 401k-IRA-savings accounts combined)
b) do not understand risks with some or all of the investments chosen (and there is more than one type of risk)
c) do not actually have a plan (they just save and think that is good enough)
I see a-b-c as the problems, not 401ks or similar plans.
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Agreed. There are problems with the programs, to be sure. But most of them are either the fault of the individual (choosing not to participate or adequately contribute) or the employer/investment company (expenses too high/not clearly stated, poor employee education). The 401k program itself is just fine. It's the idiots out there who follow the "Ready, Fire, Aim ... Complain" method that are screwing the pooch. Just ask the people who smartly decided to educate themselves and make intelligent choices regarding their 401k's -- their portfolios are down, but most aren't freaking out. Ignorance begets chaos begets poor decisions.
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Of course, if the stock market surprises everyone and marches back toward Dow 14,000, the debate will probably melt away, which is why reformers are moving now.
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This is what kills me -- the idea that the "reformers" have some temporary ammunition, they're going to attack with all they've got. IMO, the more interference that the government makes in all of this, the more things are only going to get
even more screwed up. To well-intentioned politicians and "reformers", I say BACK OFF, LET ME TAKE CARE OF MYSELF!