DISQUS

AMERICAblog: American workers more cautious about 401K plans

  • LeftCoastOracle · 1 year ago
    Wow this is surprising. I've seen a certain well known financial adviser on CNN recently counseling people not to move out of the market; to hang in there because a "...401(k) is for the long term and the market will come back."
  • Older_Wiser · 1 year ago
    According to WAPO, the number of pension plans in 2005 was 21 mil compared to 47 mil for 401ks (interestingly, it was also reported that year that 47 mil Americans were without health insurance of any kind).

    Also, Bankrate.com reported that even earlier this year hardship withdrawals from 401ks were up.

    Exactly what percentage of working Americans actually hold 401ks? A large % cash them out when they change jobs to tide themselves over in meeting their regular bills. I did this...several times. None of my 401ks, all of which were matched by employers, held more than $2K after 2 or 3 years of savings at the maximum % allowed. Which means, of course, that higher income workers tend to contribute more because of the size of their salaries.

    Many workers have no access to 401ks because they're employed by small businesses which don't offer them, just as they don't offer health care plans.

    No one can infer that "middle class" Americans (who are defined as those in the $25K to $100K earnings group) are equal. I don't think that they are looking at the same houses to buy, either.
  • DankoRamone · 1 year ago
    It does seem as though conservatives might be screaming slightly less about individual savings accounts versus social security for the forseeable future, given the hit Wall St. has taken. That and knowing voters will scalp them.


    www.BusterGetMyPills.com
  • Andrew · 1 year ago
    It's painful watching my 401(k) lose half its value, but I'm young and am forcing myself to stay in it knowing that, if I trade out now, I risk losing significant upside. I contribute, but refuse to allow myself to make any changes except for annual rebalancing.
  • RitornaVincitor · 1 year ago
    I'm actually less concerned about my 401K plan than I used to be. 62% less concerned, to be exact.