Comments on: Reforming the 401k: Good Ideas and Bad Ideas http://thefinancebuff.com/2008/12/reforming-the-401k-good-ideas-and-bad-ideas.html like a friend telling you about money ... Thu, 19 Nov 2009 19:44:17 -0600 http://wordpress.org/?v=2.8 hourly 1 By: Jeff http://thefinancebuff.com/2008/12/reforming-the-401k-good-ideas-and-bad-ideas.html/comment-page-1#comment-1232 Jeff Tue, 16 Dec 2008 02:36:54 +0000 http://thefinancebuff.com/2008/12/reforming-the-401k-good-ideas-and-bad-ideas.html#comment-1232 I think that people should have an option to roll the 401k out yearly to a rollover IRA. Some 401k plans have expensive or poorly performing funds. Folks should have an option of rolling out fully vested assets. I think that people should have an option to roll the 401k out yearly to a rollover IRA. Some 401k plans have expensive or poorly performing funds. Folks should have an option of rolling out fully vested assets.

]]> By: Pelon http://thefinancebuff.com/2008/12/reforming-the-401k-good-ideas-and-bad-ideas.html/comment-page-1#comment-1231 Pelon Tue, 16 Dec 2008 00:22:37 +0000 http://thefinancebuff.com/2008/12/reforming-the-401k-good-ideas-and-bad-ideas.html#comment-1231 Retirement plans are a pet peeve of mine. Can someone please give me a logical explanation for why we need 2,000 plans based on your employment status, your income, your age, your dog's name, etc? It's a ridiculous system that only a government could come up with. I think good idea #6 is absolutely critical. There should be only one plan with the same saving limit for everyone regardless of income or employer. If your employer or anyone else wants to contribute, they can choose to do so. You get to pick your own plan, so you don't have to worry about getting stuck with a limited range of investment choices. I can't believe anyone would even seriously consider bad idea #3. I'm already in a "guaranteed" state government pension program that is short multiple billions of dollars. If the whole country got into a similar plan, the shortfall would quickly grow unmanageable. The last thing we need to do is to add an additional burden to the system that already can't fund Social Security and Medicare. Here is one additional suggestion: - Teach basic financial skills in school. Most of the changes on that list would not be necessary if people understood the consequences of their actions. Retirement plans are a pet peeve of mine. Can someone please give me a logical explanation for why we need 2,000 plans based on your employment status, your income, your age, your dog's name, etc? It's a ridiculous system that only a government could come up with.

I think good idea #6 is absolutely critical. There should be only one plan with the same saving limit for everyone regardless of income or employer. If your employer or anyone else wants to contribute, they can choose to do so. You get to pick your own plan, so you don't have to worry about getting stuck with a limited range of investment choices.

I can't believe anyone would even seriously consider bad idea #3. I'm already in a "guaranteed" state government pension program that is short multiple billions of dollars. If the whole country got into a similar plan, the shortfall would quickly grow unmanageable. The last thing we need to do is to add an additional burden to the system that already can't fund Social Security and Medicare.

Here is one additional suggestion:

- Teach basic financial skills in school. Most of the changes on that list would not be necessary if people understood the consequences of their actions.

]]> By: name http://thefinancebuff.com/2008/12/reforming-the-401k-good-ideas-and-bad-ideas.html/comment-page-1#comment-1230 name Mon, 15 Dec 2008 19:16:44 +0000 http://thefinancebuff.com/2008/12/reforming-the-401k-good-ideas-and-bad-ideas.html#comment-1230 Social Security is a giant Ponzi scheme. Social Security is a giant Ponzi scheme.

]]> By: TFB http://thefinancebuff.com/2008/12/reforming-the-401k-good-ideas-and-bad-ideas.html/comment-page-1#comment-1229 TFB Mon, 15 Dec 2008 16:17:03 +0000 http://thefinancebuff.com/2008/12/reforming-the-401k-good-ideas-and-bad-ideas.html#comment-1229 Don - That's what I'm saying. If you are already a saver, Saver's Credit is an extra bonus. If you are not already a saver, a Saver's Credit is not enough to turn you into a saver. If people are giving up their employer match, they are willing to forgo the credit too. Don – That's what I'm saying. If you are already a saver, Saver's Credit is an extra bonus. If you are not already a saver, a Saver's Credit is not enough to turn you into a saver. If people are giving up their employer match, they are willing to forgo the credit too.

]]> By: Don http://thefinancebuff.com/2008/12/reforming-the-401k-good-ideas-and-bad-ideas.html/comment-page-1#comment-1228 Don Mon, 15 Dec 2008 16:08:08 +0000 http://thefinancebuff.com/2008/12/reforming-the-401k-good-ideas-and-bad-ideas.html#comment-1228 I love the saver's credit, and I would love if it were expanded. But maybe that's just me, and admittedly, I'm a good saver already. I love the saver's credit, and I would love if it were expanded. But maybe that's just me, and admittedly, I'm a good saver already.

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