Sunday, July 22, 2012
The Great 401k Scam
For years we have been told the marvelous benefits of the 401k plan for retirement. One of the biggest lies is that we will be able to do what WE want with OUR OWN money. A nice conceit except for the fact that we have no idea what to do with it, little incentive or ability to save enough and ultimately precious little control over it. Or as Teresa Ghilarducci, a professor of economics at the New School for Social Research puts it.
It is now more than 30 years since the 401(k)/Individual Retirement Account model appeared on the scene. This do-it-yourself pension system has failed. It has failed because it expects individuals without investment expertise to reap the same results as professional investors and money managers. What results would you expect if you were asked to pull your own teeth or do your own electrical wiring?And now we have to worry about too many people we should be able to trust trying their best to steal what little we will get from Social Security. The Republican/Teabaggers would be thrilled if that happened. We wouldn't need to get sick to die soon.
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