My comment: For US friends. Arable land with good water supply.
Commodities. Grow food at home.

That will not turn rich to anyone probably, but it can give a better
life without dramatic troubles

Peace and best wishes.

Xi

Investors Sit Tight as Flaws in 401(k) Plans Exposed

http://www.bloomberg.com/apps/news?pid=20601087&sid=aKLKGUoUrjLg&refer=home

....

It may take more than the worst bear market in 77 years to rattle U.S.
retirement-plan investors.

...

On Feb 24, 5:29 pm, xi <[email protected]> wrote:
> http://www.bloomberg.com/apps/news?pid=20601087&sid=aw1LU5_qRb.I&refe...
>
> Feb. 24 (Bloomberg) -- House Education and Labor Committee Chairman
> George Miller said 401(k) retirement plans do not provide sufficient
> retirement security for many Americans and must be revamped.
>
> Miller, a California Democrat, recommended better disclosure of 401(k)
> fees and more objective marketing of retirement products to investors
> at a Washington hearing today on the effectiveness of existing
> retirement savings plans.
>
> Investors had $2.7 trillion in 401(k) accounts as of Sept. 30,
> according to the Washington-based Investment Company Institute, which
> represents mutual funds. The Congressional Budget Office estimated
> that workers lost $2 trillion over a span of 15 months from declining
> stock markets at an October hearing of the House Education and Labor
> Committee.
>
> “For too many Americans, 401(k) plans have become little more than a
> high-stakes crap shoot,” said Miller. “We are realizing that Wall
> Street’s guarantees of predictable benefits and peace of mind
> throughout retirement was nothing more than a hallow promise.”
>
> Miller questioned at the October hearing whether the U.S. had gotten
> its money’s worth from the estimated $80 billion in tax subsidies the
> retirement accounts receive each year. At the hearing, Teresa
> Ghilarducci, a professor at the New School for Social Research in New
> York, proposed replacing 401(k) plans with government-run retirement
> savings accounts.
>
> ‘Preserve and Strengthen’
>
> Today, Miller said “we must preserve and strengthen 401(k)s.” About 55
> million private-sector employees have defined-contribution retirement
> plans, in which workers are responsible for managing their own funds,
> according to the Center for Retirement Research in Boston. The 401(k)
> plans, which generally are tax-deferred savings accounts, are one of
> the most common retirement plans.
>
> John Bogle, founder of fund manager Vanguard Group, echoed Miller,
> saying, “the 401(k) plan is an idea whose time is come” yet “our
> existing defined contribution system is failing investors” because of
> high fees, low levels of saving, excess flexibility that permits
> cashing out and too much borrowing and inappropriate asset allocation.
> Bogle recommended a single defined contribution structure using low-
> cost annuities, among other options.
>
> Retirement savings are too exposed to market risk, according to Dean
> Baker, co-director of the Center for Economic and Policy Research in
> Washington and another witness at today’s hearing. Baker proposed a
> government-run pension system providing a modest guaranteed rate of
> return, according to a statement released last night.
>
> Employees must work longer to extend retirement savings and social
> security could be stabilized and supplemented by target- date funds,
> said Alicia Munell, director of the Center for Retirement Research at
> Boston College, in prepared remarks. Target-date funds shift money
> into more conservative investments as an investor approaches
> retirement.
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