BoatBanter.com - Something to think about

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On Tue, 22 Sep 2009 11:12:08 -0700, "nom=de=plume"
wrote:

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On Tue, 22 Sep 2009 06:26:55 -0700 (PDT), wf3h
wrote:

On Sep 21, 9:16 pm, wrote:

The problem is that the federal government was doing this. If it was
local government or even local charity, onezee twozee is not that
hard to do.
I lived in SE DC when the great society programs hit and I saw those
neighborhoods decline into the cesspools they are now (Marion Barry's
8th ward for you folks outside the beltway)

now let's see....who was it that destroyed my 401K...the 'free market'
or the govt?...hmmm....let me think

The answer to that is "both".

Your 401k is a ponzi anyway. If you are much under 60 you will lose
your ass on it no matter what. When the boomers are forced to draw
down their 401ks (by law) the stock market will be history, along with
the whole concept of "retirement".

If you look at the entire financial system, in a way you're right.
Financial
markets are built upon trust and confidence, but historically, they've
done
pretty well for people. There are ups and downs. Anyone relying on one
thing
for retirement is foolish. It's called diversification and participation
in
your financials. You can let any investment just ride along and hope
everything will turn out ok.

I would never put more into a 401k than your boss matches.
Invest the rest of your savings in a variety of instruments with after
tax money. The Roth makes sense for a lot of people.

The biggest lie of the 401k and IRAs scam is that you will pay taxes
at a lower rate than you would when you were working. That will only
be true if you are living below the poverty level when you cash it in.
For most of us the government will be coming after that money with a
vengeance.
For one thing, it is all taxed as ordinary income, not capital gains.
You may also be forced to sell into a declining market if you wait too
long.

Not entirely accurate. You can manage your 401K withdrawls. Yes, you have to
be careful, but it's doable with minimal taxes.

Lots of people are currently being forced to sell in a declining market
right now. However, that's not catastrophic if you've saved enough.

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Nom=de=Plume