UnThreaded | Threaded | Whole Thread (89) | Ignore Thread Prev | Next
Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 81591  
Subject: Re: Retirement, college, and Obamanomics Date: 12/30/2012 10:03 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
401k's...there have been serious discusions on how to end the benefits "because they aren't fair" and also talk if government seizing the assets and replacing with gov sponsered plans similar to SS...you haven't heard of this possibility?

Not from rational people.

It sounds to me like your operating from fear instead of facts.

401k plans (and IRAs) are nothing more than long-term tax arbitrage. Avoid current income taxation in exchange for income tax payments down the road. The theory being that you're in a higher tax bracket when working than after you retire. Roth IRAs and 401ks provide for those who think their taxes will be higher in retirement rather than lower. So both positions are covered.

The benefit to society being that if you are encouraged to save for your own retirement through a bit of a tax break, you are far less likely to need public assistance when you do retire. I don't know how anyone can consider them unfair by any means. At worst, they are some social engineering mashed into the tax code.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (89) | Ignore Thread Prev | Next


The Retire Early Home Page
Discussion on accelerating retirement day.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.