IBM is freezing its oh-so-industrial-age pension plan, and moving its employee retirement priorities to a 401(k) plan. I look forward to a day when all of the big employers make this transition. This must be the wave of the future, if only our own government had the courage to do this.
The difference between a pension and a 401(k) is that the employee actually owns the latter. A pension is a company’s promise to pay you in the future, but you do not own anything except an IOU. This is the concept behind the move to private accounts for Social Security that was floated in 2005, when bad politics killed a good idea.
I would jump at the chance to move my $$ into my 401(k) instead of Social Security taxes.
If I kick off before I begin collecting Social Security, that money is gone. Tens of thousands of dollars that could fund my nephews’ college, hundreds of man-hours, amounting to zero. Whereas, my 401(k) is real money that I can bequeath.
Plus, one might argue that it’s a bit immoral for me, in my old age, to ask the current working generation to support me. I will have had a lifetime to save, and honestly, if I've been fortunate in my life, I should not be draining resources from the next generation.
Keep in mind, Social Security is not designed to protect the poor from destitution in their old age -- that would be a welfare program, and we have those too. If our fear is poverty of the elderly, then let’s have a program designed to prevent it. SS is a program that funnels money from the wealthiest of the current generation to the wealthiest of the previous.
Make your life time easier get the mortgage loans and all you need.
Posted by: Navarro34Maura | 21 July 2011 at 12:11 PM
Gods determine what you're going to be. -- Julius Erving
Posted by: Air Yeezy For Sale | 22 September 2011 at 12:03 AM