The system is working
 

recently viewed a television special which compared Pension Funds to 401Ks. it showed that companies saved major $$$$ when switching from Pension Funds to 401Ks. only problem with this plan is the worker bees get screwed. it is amazing that the Principal group is telling people they can't get their own money!! The system is working.

http://articles.moneycentral.msn.com/Investing/Extra/401k-funds-putting-locks-on-your-cash.aspx

This is a case of violated expectations mixed with greed because the system is lax and the fox is guarding the hen house.

401(k) programs are good if you do not intend to stay more than 5-10 years because previously unvested employees got $0 pension.

Now companies are using this to cut costs and just pass it on to certain people in the form of bonuses.

To those who would say that "all people have a choice," no-- they don't. If you need a job and that's the only one available or all companies do the same thing, you are stuck. Unless you want to start your own company or resort to illegal activities.

The only alternative is an IRA savings plan which you fund yourself. And which every one should have.

When my son hits 21, I'm giving him $2,000 as a gift-IRA. He'll forget about it for 40 years and then from there he can do what he wants with it. I'll be 102 and I won't care.

Hope that one works out like you plan, I'm guessing that if the average parent did this for the average 21 year old you would have a different outcome.

I've had IRA's since I was 22 years old, I've been hurt in the last few years but overall I much prefer this set-up to the standard pension plans I've seen.

As I see it the great advantage to an IRA is the ability to change jobs anytime I want without worrying about what will happen to "my pension" - I can't tell you how many people I've met (mostly in government because they seem to be the only ones that still have standard pension plans) that are just 'hanging on' so they can get their pensions. They are unhappy with their situation but don't have the freedom to pursue other opportunities because of 'the pension' issue.

Privatize social security I say. :rolleyes:

Privatization is the problem here, not the solution.

X2.

Wanna give your money to AIG? or maybe invest it in credit default swaps where the agent gets away scot free and your cash is gone? No thanks.

X2.

Wanna give your money to AIG? Or maybe invest it in credit default swaps where the agent gets away scot free and your cash is gone? No thanks.