401k (discussion)
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 supplemental 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 now 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. The census last night was we will be redefining RETIRED; many will have to work through retirement age to live comformatably.
From most of the what i heard on this 401k needs to be reformed along w/ social security.
I personally for one am not enrolled, I can't afford the luxury of 5-15% of my pay taken out since i have a wife in school fulltime. We need all of the money we make until she finishes school; then i plan on enrolling.
anyones thoughts...
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