Some of you guys might want to keep tabs on your 401Ks.

#1
gsvol

gsvol

Well-Known Member
Joined
Aug 22, 2008
Messages
14,179
Likes
10
#1
This is from a year ago but worth some attention.

One of the nation's largest labor unions, the Service Employees International Union (SEIU), is promoting a plan that will centralize all retirement plans for American workers, including private 401(k) plans, under one new "retirement system" for the United States.

In effect, government pensions for everyone, not unlike the European system and regardless of personal choice.
----------------------------------------

Here is an article from two years ago.

Democratic leaders in the U.S. House discuss confiscating 401(k)s, IRAs
 
#2
#2
This will never happen, but I do remember the articles.
Posted via VolNation Mobile
 
#3
#3
I think more realistically variable annuities w guarantees will be promoted as a way to essentially purchase your own pension.
Posted via VolNation Mobile
 
#4
#4
Vols520 said:
This will never happen, but I do remember the articles.
Posted via VolNation Mobile
Click to expand...

I wouldn't put anything past this administration. When we lose our AAA bond rating and no one wants to buy our debt, I expect for Obama to push some BS through requiring all retirement accounts to consist of x% of US bonds.
 
#5
#5
Vols520 said:
This will never happen, but I do remember the articles.
Posted via VolNation Mobile
Click to expand...

Never say never.

Nowadays liberals seem to be having their way about everything.

The main liberal objection to 401(k)s seems to be that they let average Americans control their own investment decisions for retirement.

You might want to read the fine print in the upcoming banking reform bill.

If that doesn't do it then there is still the executive order.

Have you heard of Teresa Ghilarducci, economist at The New School for Social Research?

Have you heard of Adam Starchild??

Be prepared.
 
#6
#6
lumberjack4 said:
I wouldn't put anything past this administration. When we lose our AAA bond rating and no one wants to buy our debt, I expect for Obama to push some BS through requiring all retirement accounts to consist of x% of US bonds.
Click to expand...

Next you will be paid in a one world money, as soon as a name can be agreed upon.

My recommendation is 'Global Ponzis.'

Coins will be call ponzi change.

FROM THE COMMUNIST MANIFESTO:

Nevertheless, in most advanced countries, the following will be pretty generally applicable.

1. Abolition of property in land and application of all rents of land to public purposes.

2. A heavy progressive or graduated income tax.

3. Abolition of all rights of inheritance.

4. Confiscation of the property of all emigrants and rebels.

5. Centralization of credit in the banks of the state, by means of a national bank with state capital and an exclusive monopoly.

6. Centralization of the means of communication and transport in the hands of the state.

7. Extension of factories and instruments of production owned by the state; the bringing into cultivation of waste lands, and the improvement of the soil generally in accordance with a common plan.

8. Equal obligation of all to work. Establishment of industrial armies, especially for agriculture.

9. Combination of agriculture with manufacturing industries; gradual abolition of all the distinction between town and country by a more equable distribution of the populace over the country.

10. Free education for all children in public schools.

Actually that is just the front story for morons that appove of government run health care and such, the reality is that the social/political elites will have the planet for their playground and not have to be bothered with their lessers who will be herded about like cattle by their governments.

Think I'm joking, Homeland security just ordered 200 million .40 cal rounds loaded with 135 grain hollow points from Remington Arms to be delivered over the next five years.

Prepare to be reeducated.
 
#12
#12
today's annuities have 6% upfront sales loads and extremely high fees. and it makes no sense to buy a tax advantaged vehicle in a 401k which is already tax advantaged. this is just a way to rip off old people.
 
#13
#13
Vols520 said:
Equity indexed annuities are bad, not va's
Posted via VolNation Mobile
Click to expand...

you'd do far better maxing out your 401k or if you are already doing that buying stocks and municipals and holding them long term until retirement.
 
#14
#14
droski said:
today's annuities have 6% upfront sales loads and extremely high fees. and it makes no sense to buy a tax advantaged vehicle in a 401k which is already tax advantaged. this is just a way to rip off old people.
Click to expand...

You wouldn't do it for deferral purposes, but for living or death benefits.
Posted via VolNation Mobile
 
#15
#15
they only make economic sense if you outlive your life expectancy. otherwise you are far better off investing it and reducing your principle over time. all you need to know is that annuities are a major profit center for financial firms and also have the highest commisions to their advisors. always the sign of a bad investment.
 
Last edited:
#16
#16
droski said:
they only make economic sense if you outlive your life expectancy. otherwise you are far better off investing it and reducing your principle over time.
Click to expand...

At least 20% of you retirement. should be in a va with either a living or death benefit.

Do what u want w the rest.

If u are facing a 30 year retirment and are tskin out 4% in a 60/40 mix u have a 47% chance of outliving your income.
Posted via VolNation Mobile
 
#18
#18
Vols520 said:
At least 20% of you retirement. should be in a va with either a living or death benefit.

Do what u want w the rest.

If u are facing a 30 year retirment and are tskin out 4% in a 60/40 mix u have a 47% chance of outliving your income.
Posted via VolNation Mobile
Click to expand...

why would you buy a VA with a death benefit if you are worried about outliving your income? there is no free lunch here. the insurance companies are making a fortune off of these things and it's not because people are outliving the time it takes to pay back the priniciple with interest. if you are really concerned about it you buy a fixed immediate annuity with an cash payment at retirement, not a variable annuity where the death benefit get's reduced by the high fees for 20 years before it starts paying.
 
#19
#19
Vols520 said:
And those numbers are from a mf company
Posted via VolNation Mobile
Click to expand...

they have a huge incentive to get you to buy these things. the hidden fees are ridiculous. i suggest you do an analysis and see how long it takes you to run out of money assuming a modest return like 5% and reducing your principle by the difference the annuity company is offering you. use excel. i bet you find you have to live till your late 90s to have it make economic sense.
 
#20
#20
droski said:
why would you buy a VA with a death benefit if you are worried about outliving your income? there is no free lunch here. the insurance companies are making a fortune off of these things and it's not because people are outliving the time it takes to pay back the priniciple with interest. if you are really concerned about it you buy a fixed immediate annuity with an cash payment at retirement, not a variable annuity where the death benefit get's reduced by the high fees for 20 years before it starts paying.
Click to expand...


Fees of va's are only 1.5 more than a mutual fund.

Death benefits today are so solid that uncan take income and they won't be reduced. Or they will compund and lock in gains.

Spias u are essentially giving your lump sum away
Posted via VolNation Mobile
 
#21
#21
Vols520 said:
Fees of va's are only 1.5 more than a mutual fund.

Death benefits today are so solid that uncan take income and they won't be reduced. Or they will compund and lock in gains.

Spias u are essentially giving your lump sum away
Posted via VolNation Mobile
Click to expand...

1.5% a year is a lot of money. an extra 1.5% on 100K over 20 years is 35K.

guaranteed death benefits come with significant charges.
 
#22
#22
droski said:
1.5% a year is a lot of money. an extra 1.5% on 100K over 20 years is 35K.

guaranteed death benefits come with significant charges.
Click to expand...

You get what u pay for.

With that argument why would you ever by a luxury car when u can get a car for 15k?

And when u need to take out 4-6 percent in retirmentt u need a guarantee that the income won't be reduced or go away
Posted via VolNation Mobile
 
#23
#23
i'm actually arguing this is a case where you arent' getting what you are paying for. you are simply lining your investment advisor's pockets. i couldn't sleep at night if i sold this crap to my clients and i'm not the only person that feels this way. it's the same way with loaded mutual funds or high fee wrap accounts.
 
#24
#24
droski said:
i'm actually arguing this is a case where you arent' getting what you are paying for. you are simply lining your investment advisor's pockets. i couldn't sleep at night if i sold this crap to my clients and i'm not the only person that feels this way. it's the same way with loaded mutual funds or high fee wrap accounts.
Click to expand...

So if u gave me 500k. Took out 25k for twnety years and then passed away, and you wife got a check for 500k, u wouldn't be happy?
Posted via VolNation Mobile
 
#25
#25
Vols520 said:
So if u gave me 500k. Took out 25k for twnety years and then passed away, and you wife got a check for 500k, u wouldn't be happy?
Posted via VolNation Mobile
Click to expand...

no i wouldn't be happy with a 5% return for 20 years. particurally not a 5% taxable return.
 
New posts
You must log in or register to reply here.

VN Store



Back
Top