Are any of y'all anti- 401K or IRA | Page 3 | TigerDroppings.com

Posted byMessage
LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
82805 posts
 Online 

re: Are any of y'all anti- 401K or IRA


quote:

what are yall's thoughts on 401K if NOTHING is matched?

Those types of plans usually have such low average employee participation that the plan fails to meet the participation tests prohibiting plans from being designed primarily for the highly compensated employees.

When that happens, the employer often just cancels the plan rather than pay administration costs for something few employees use.






Back to top
LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
82805 posts
 Online 

re: Are any of y'all anti- 401K or IRA


quote:

I'm not sure the precise limits of this though
There are no limits on how much the employer can match other than the annual limit on how much total tax-deferred money can go into an employee's account, which I think is approximately $22,500 for 2013.






Back to top
Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
56641 posts
 Online 

re: Are any of y'all anti- 401K or IRA


Unless you are talking about a defined benefit plan. Which is an entirely different animal.





Back to top
TigerDeacon
Wake Forest Fan
West Monroe, LA
Member since Sep 2003
24550 posts

re: Are any of y'all anti- 401K or IRA


Who ever said that your only retirement investments should be an IRA or a 401K? They are tools that are available. If you don't want part of your investment matched, then put your money somewhere else.





Back to top
  Replies (0)
Cold Cous Cous
LSU Fan
Obvious and pointed jeering
Member since Oct 2003
13704 posts

re: Are any of y'all anti- 401K or IRA


quote:

The downside is the employee withdraws the money, pays the taxes and 10% penalty (if he's under 59 1/2) and then has zero left for retirement or a rainy day. I realize no one should be protected from their own stupidity, but in the real world some employers actually do want their employees to have some money put away for when they retire.

I understand this. However, replace the word "employer" with "government" and you're suddenly the Ghiracci chick.

ETA: I'm not attacking the concept of 401(k) or employer matches or anything. I'm just curious as to why you get irate at the idea that the gov't controls the employee's account, but think it's cool for the employer to also do so. I assume you think the employer is inherently more trustworthy/capable than the government, but we both know that may or may not be true, depending on the employer.



This post was edited on 5/3 at 10:55 am


Back to top
LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
82805 posts
 Online 

re: Are any of y'all anti- 401K or IRA


quote:

Unless you are talking about a defined benefit plan.


A 401(k) plan is a defined contribution plan and not a defined benefit plan so, yeah, it is different.

Employees do not have set amounts put into an account for them in defined benefit plans so the amount 'limit' is non-existent for DB plans.






Back to top
  Replies (0)
Catman88
LSU Fan
Baton Rouge, LA
Member since Dec 2004
40065 posts

re: Are any of y'all anti- 401K or IRA


As long as my company gives me free money for a 401k Im not sure I can understand how Im supposed to hate it.





Back to top
LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
82805 posts
 Online 

re: Are any of y'all anti- 401K or IRA


quote:

However, replace the word "employer" with "government" and you're suddenly the Ghiracci chick.

Nah.....not even close.

Employers are privately owned and not a public entity. Besides, the "Ghiracci chick" as you put it, advocates government mandated employee contributions into accounts the government controls. An employer (401k) plan is VOLUNTARY and the employee can simply choose to NOT participate if he doesn't like the way his employer administers the plan.

I assume you can discern that difference.






Back to top
  Replies (0)
ZereauxSum
LSU Fan
Lot 23E
Member since Nov 2008
8800 posts

re: Are any of y'all anti- 401K or IRA


quote:

As long as my company gives me free money for a 401k Im not sure I can understand how Im supposed to hate it.


Sums things up quite nicely.






Back to top
LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
82805 posts
 Online 

re: Are any of y'all anti- 401K or IRA


quote:

As long as my company gives me free money for a 401k Im not sure I can understand how Im supposed to hate it.



Sums things up quite nicely.

Yes, it does.






Back to top
  Replies (0)
RunningBlake
Mississippi St. Fan
Member since Aug 2011
2013 posts

re: Are any of y'all anti- 401K or IRA


I think quite a few people are finding out that, as retirement approaches, they will not be able to depend as much on ther 401k as they intially thought or were led to believe. In fact, in my own IRA, it's really done nothing over the past 10 years.





Back to top
LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
82805 posts
 Online 

re: Are any of y'all anti- 401K or IRA


quote:

In fact, in my own IRA, it's really done nothing over the past 10 years.

And you've had 100% control over your money*, right?

With the stock market (S&P 500) almost doubling since January 2003, maybe you should reconsider your investment process?

*My point to CCC earlier in this thread.






Back to top
donRANDOMnumbers
New Orleans Pelicans Fan
Lafayette Rouge
Member since Nov 2006
12306 posts
 Online 

re: Are any of y'all anti- 401K or IRA


quote:

Those types of plans usually have such low average employee participation that the plan fails to meet the participation tests prohibiting plans from being designed primarily for the highly compensated employees. When that happens, the employer often just cancels the plan rather than pay administration costs for something few employees use.


that's what we have. small business so it doesn't match anything. most everyone participates in it, but i actually don't. was wanting to start it, but i've wanted to keep cash on me for now since i just got married and i've had success trading on my own.

just seeing what others thought.






Back to top
dewster
Maryland Fan
Member since Aug 2006
9095 posts

re: Are any of y'all anti- 401K or IRA


quote:

In fact, in my own IRA, it's really done nothing over the past 10 years


What are you invested in?






Back to top
ZereauxSum
LSU Fan
Lot 23E
Member since Nov 2008
8800 posts

re: Are any of y'all anti- 401K or IRA


quote:

that's what we have. small business so it doesn't match anything. most everyone participates in it, but i actually don't.


It sounds like you'd be better off using a traditional IRA and deducting the contributions.






Back to top
  Replies (0)
RunningBlake
Mississippi St. Fan
Member since Aug 2011
2013 posts

re: Are any of y'all anti- 401K or IRA


My big loser is Windstream.

The others have done ok - VOD, AGNC, NLY, and SFNC. All are dividend paying. I have 100% control over my money.

eta: this is a roth ira.



This post was edited on 5/3 at 11:45 am


Back to top
  Replies (0)
Cold Cous Cous
LSU Fan
Obvious and pointed jeering
Member since Oct 2003
13704 posts

re: Are any of y'all anti- 401K or IRA


quote:

And you've had 100% control over your money*, right?

With the stock market (S&P 500) almost doubling since January 2003, maybe you should reconsider your investment process?

*My point to CCC earlier in this thread.


Not to go WikiTiger here, but this assumes it's justifiable for someone to take control over an employee's account "for his own good." The only disagreement between you and Ghiracci is whether that "someone" is the employer or the government. You and she both have very good intentions.

And yes I get the distinction between the gov't mandated contribution and the voluntary contribution. But let's assume that the employee is smart enough to know he wants to contribute something to retirement. Once he has made that decision, the company should take over? Sometimes the line between statist bastard and corporatist bastard can be pretty thin.






Back to top
LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
82805 posts
 Online 

re: Are any of y'all anti- 401K or IRA


quote:

But let's assume that the employee is smart enough to know he wants to contribute something to retirement. Once he has made that decision, the company should take over?
No, not at all. He can open his own IRA (Roth or traditional) and do whatever he wants to do with his retirement money and not participate in his employer's plan. (I assume you know employers have to PAY for a 401k plan to be set up and administered, right? They are not free.)

That seems simple enough.

quote:

Sometimes the line between statist bastard and corporatist bastard can be pretty thin.
So is the line between someone being an imbecile and an idiot......






Back to top
  Replies (0)
foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
30154 posts
 Online 

re: Are any of y'all anti- 401K or IRA


quote:

Unless you are talking about a defined benefit plan. Which is an entirely different animal.


An animal that is no longer found in the wild and mainly seen in government-run zoos.






Back to top
  Replies (0)
ZereauxSum
LSU Fan
Lot 23E
Member since Nov 2008
8800 posts

re: Are any of y'all anti- 401K or IRA


quote:

But let's assume that the employee is smart enough to know he wants to contribute something to retirement. Once he has made that decision, the company should take over?


No, because when a person makes that decision, he still doesn't have to use the 401K. He can invest in an IRA, open a brokerage account, trade FX or buy bitcoins and dinars.

If this Ghiracci broad has her way, you will have to contribute to the gov plan, regardless of whatever else you want to do. She wants a mandate.

Now, if the government wants to offer a voluntary alternative then that's sort of OK, ignoring the fact that they are using tax dollars to administer a new program that will likely end up being a SS-like cluster.

But that's not what they will do.

ETA: Russian types faster than I do



This post was edited on 5/3 at 11:55 am


Back to top


Back to top