Quote Originally Posted by admin
401k (discussion)

I saw a really good specially on FRONTLINE last night on PBS on 401k and there are alot of things i didn't know. Its very crazy and alarming the info they had on this show.

What i didn't know that 401k was a suplemental retirement plan introduced back in the 70's b/c a few big companys were having issues (Kodak, Xerox)... after this got introduced companys found out it would be cheaper for them to do away w/ pentions and go to this system.

On the avg pention plan the empolyees shell out around 15% of cost and employers 85%, w/ the 401k this has shifted and employees are not taking on more cost approx 55% of cost while having to manage their own retirement.

I also found out that the avg middle income person needs to have 8x their annual salary when they retire to be able to carry them through, most are retiring w/ 3-4x their salary which is less then 1/2 of what they should.

From most of the what i heard on this 401k needs to be reformed along w/ social security.

anyones thoughts...
Yep I knew of this when I started putting into my 401k, basically big corporations put the responsibility on the employees. I dont really have time right now but I'll expand on it later.