I am so happy that all my about $20,000 retirement fund is in the US Treasuries. And that is all I have in my retirement fund. How am I supposed to make my ends meet with that kind of retirement fund when I am too old to work anymore? Luckily, I am beating Doug with $0 to $20,000 when it comes to retirement funds. But, I would be very happy to take him and his family to a decent vacation in the Bahamas for a week or two with that money one day. Then, maybe Doug and I will start a "revolution" in our old age.
Best, Sabri +++++++ Workplace Retirement Plans Suffer $2 Trillion in Losses By JENNIFER LEVITZ The Wall Street Journal, October 8, 2008 Americans have lost $2 trillion in their workplace retirement plans in the past 15 months, threatening the security of millions, according to government data. The Congressional Budget Office disclosed the figures at a hearing by the House Education and Labor Committee, prompting some legislators to question whether retirement-savings plans are inherently too risky. The $2 trillion figure includes 401(k) plans -- which have become the primary savings vehicle for 60% of workers -- as well as traditional pension plans. The 401(k) plans, which require workers to manage their own retirement savings, have been the hardest hit, according to the Congressional Budget Office. While some 401 (k) participants are making unwise investment choices, the "exposure to broad market risk is unavoidable" for nearly all workers, said Peter Orszag, the Budget Office's director. That's partly because investment choices in the plans are weighed in favor of equities. The losses, which are likely to force many people to delay retirement, are prompting some legislators to take a new look at the legislation that created 401(k)s and subsequent laws that have allowed investment companies to steer workers into riskier funds. Congress created the investment accounts about 25 years ago. Today, 401(k)s have largely replaced traditional defined-benefit pension plans. Rep. George Miller (D., Calif.), committee chairman, said "evidence is starting to accumulate that this is an inadequate vehicle." Teresa Ghilarducci, a professor of economic policy at the New School for Social Research in New York, said Congress should let workers trade 401(k) assets to the government -- perhaps valued at mid-August prices -- for a retirement account composed of government bonds. She called the 401(k) a "failed experiment." Write to Jennifer Levitz at [EMAIL PROTECTED] _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
