401(k)s in for double whammy?

Retirement accounts already battered by a steep market decline may get hit again as several companies suspend or reduce their 401 match to save cash. Full Story
First Prev
of 3
Next Last
jones

AOL

#41 Nov 12, 2008
yes wrote:
Article from today: AIG getting $40B in new aid
What did they do with the other billions of bailout dollars they already received? Paid their bonuses to their failure executives? That's our money, our taxes, our plummeting 401k totals.
"401(k)s in for a double whammy" yeah right it ain't gonna be only a one two punch. It will be punch after punch after punch until you crumple to the canvas and are called out.
AIG according to the latest news articles threw(blew) the money away on executive pay and another lavish party for the execs in Phoenix Ariz.
I think this is the 90 degree turnaround that the Fed made today. They're not just handing money out anymore , they'll buy stock in the company with the 700 billion bailout instead of just handing it to them to blough.

Whatever happened to public hangings in our country? Have a dozen or so and the rest will fall in line. Start with Frank and Pelosi and AIG.

It isn't going to work for the Auto Industry either. Wouldn't it be cheaper to give each citizen ,working or retired 150Ks and watch us spend it. The Gov was never good at bailouts for the rich.

watch me spend my days fishing in the Delaware bay.
Mazikeen

Philadelphia, PA

#42 Nov 13, 2008
t rex wrote:
<quoted text>
Sorry about the name calling. However I take offense at the inference that I'm stupid. Thanks for the offer for the beachfront pal, but I've had lake front on the Paupack for 10 years. I have done OK for a dumb salesman. Have a good one.
I Love the pocono's!
Mazikeen

Philadelphia, PA

#43 Nov 13, 2008
Jean wrote:
<quoted text>
Rush/Fox right wing noise machine listeners are the only ones discussing this issue. It's fabricated. That's how I know.
hey.. at least to words out, whether you believe it or not is up to you.. I take no sides, and again, wouldn't call LA Time a valid source to refute anything. Unless its the obituaries to see who has passed...im hoping they are accurate with that in the least.
Mazikeen

Philadelphia, PA

#44 Nov 13, 2008
MNevins wrote:
<quoted text>
To continue our exchange, and I was anything but insulted by your "mortgage broker" quote - this is my 23rd year in the business and I'm with a top company - and myself and others were simply bewildered by the "flexible" underwriting and "NINJA"-type loans that BANKS and others were willing to approve and securitize.
Why did they do this? Because these "super-genuises" KNEW that real estate would never decline in value.
I knew better and since I also knew that the type of loans that I was writing were ALL Triple-A credit and, stunningly, these 6-digit wage earners were all just one or two paychecks removed from destitution. Why? They lived paycheck-to-paycheck and have no savings.
Wait, they often did have semi-substantial 401K's (often with loans!)- guess what the value of those are today?
Most people can not afford to have a 20-yr horizon. I'll be 69 in 20 years. Worse, I know a lot of people near retirement and they've just seen their 401K's cut in half. Therefore, they ain't retiring!
Perhaps due to my experience or disposition, I do not unfortunately share your enthusiasm regarding the "experts," etc. that you use as resources.
Why? Look at where the "super-genuises" have just brought us - and very, very few (6?) even remotely saw what we are now facing coming.
And now, no surprise, Intel reports that its earnings did not meet expectations. It is a bellweather company. I see a pattern.
I "cry" not for me - I've been in cash and "Mr. Frugal" is my nickname. No, I "cry" for the people of this great country and others who are being daily devastated by what is occurring.
And what happens when the "paycheck-to-paycheck " people lose one of those paychecks? They no longer have any home equity and their 401K is shot.
Lastly, believe it or not, I DO consider myself an "optimist" - life IS great. We WILL muddle on through this - but it will bring a lot of pain first. My wife and I are prepared to be even more generous in our charitable contributions.
thanks for listening.
Hey.. you have super valid points.. and we can always argue, but people will always invest different. I follow a few simple rules i learned in school.. First you alwasy consider any job as temporary, and therefore continue to push onto success, but with a safety net. A basic rule would be always have at least 6 months of your income in savings for any rough road you may incounter. Second, reallocate your portfolio wisely.. stay on top of it.. Branch out with multiple types of savings.. I, for one, have several IRA's in addition to my 401K, defined pension, and savings. I am younger, and a risk taker. Therefore, I will wait this out as time is on my side.. i've seen this happen to many people.. I remember when a ton of people lost their money when they unwisely vesting into over 5% of company stock (most over 20% vested), and the company went belly up (agere, Enron, etc).. some fooled others consciouly vesting in such. There are numerouse other basics.. But I also understand the way it works in better detail than what you see on tv.. and for what I dont know, I pay some good money to advisors for their advice.. so i'll stick to mine, and you will stick to yours.. but if I gamble right, I will have much more in the long run.. I will play safer toward retirement age, that may never happn at this rate..lol
Ayuh

Scarborough, ME

#45 Nov 13, 2008
The people who were paying attention to what was coming got out of stocks before they crumbled and will wait for the stockmarket to bottom out before re-investing.

We have not hit bottom yet. Not even close. Just wait until credit card giants start to fail because nobody can repay what was borrowed against that magic plastic. And they will. Then there will need to be another bailout.

What would be next to fail? Or next to bail out? And when do we stop bailing failed businesses out? Nobody is going to bail me out once the business I work for closes and my wife and I lose everything we have worked hard for.

This goes beyond a recession. I have heard it called the Mini Depression and believe me, it will be years before we come anywhere close to where we were before these large banks failed us. Remember, you can not regulate greed as the feds would have us believe when they sais the banks would regulate themselves. BS!

The people who helped create this mess should be hung for their treason. Executives, board members and politicians alike. And believe me, it is treason, just made legal by the people we voted in to office to protect us and our investments.
Ayuh

Scarborough, ME

#46 Nov 13, 2008
jones wrote:
<quoted text>
AIG according to the latest news articles threw(blew) the money away on executive pay and another lavish party for the execs in Phoenix Ariz.
I think this is the 90 degree turnaround that the Fed made today. They're not just handing money out anymore , they'll buy stock in the company with the 700 billion bailout instead of just handing it to them to blough.
Whatever happened to public hangings in our country? Have a dozen or so and the rest will fall in line. Start with Frank and Pelosi and AIG.
It isn't going to work for the Auto Industry either. Wouldn't it be cheaper to give each citizen ,working or retired 150Ks and watch us spend it. The Gov was never good at bailouts for the rich.
watch me spend my days fishing in the Delaware bay.
Jones, rather than give us money, give us jobs. Create jobs in our own country. Stop pumping money into other countries. Stop giving tax breaks to companies who send our jobs overseas. Invest in our own country and take care of our own first.

Somewhere, at some time, we have lost our way.
Mazikeen

Philadelphia, PA

#47 Nov 13, 2008
Ayuh wrote:
The people who were paying attention to what was coming got out of stocks before they crumbled and will wait for the stockmarket to bottom out before re-investing.
We have not hit bottom yet. Not even close.
Right.. so you will continue to add to the stock drop by taking it out.. keep buying cheap stock.. time is on my side.. do you not rememeber the tech bubble burst of the 90s? I sure do.. i seen my investments drop.. i reallocated to other investments, and have nearly tripled since then.. my average year's yield beat the indexs year to year for the past 10 yrs.. i'd say i do pretty well.. and I am a mere amature.. I surely hope people do not take your advice.
Ayuh

Scarborough, ME

#48 Nov 13, 2008
Mazikeen, you are going by what has traditionally happened during recession times. This is not a traditional recession. It is much worse than that and we have never seen times like these, at least not in our lifetime.

I am not arguing your point, because you are right. Taking our money out of the stockmarket will not help the market, but it will help us smalltime investors keep at least some of our hard earned money. I was lucky to be paying attention to what was coming before it hit, so I got out before the crash (which we are still going through).

When we reach rock bottom, I will re-invest in the stockmarket, but not until that time. For now I will be happy making 2 to 3% interest and keep investing, just not in stocks.

I believe it will be another year or two before we reach rock bottom, and we will not recover like we have in past recessions. Just what I believe. Like I said, this is like no recession we have ever been through, and is starting to turn into something more like a depression.

I could be wrong, and honestly, I hope I am. I am just as scared as the next guy and am only trying to protect myself and hold tight to the money I have earned until a time when I think I can use it to make more money. Or until a time when I have to use it for my wife and I to survive.
Mazikeen

Philadelphia, PA

#49 Nov 13, 2008
Ayuh wrote:
Mazikeen, you are going by what has traditionally happened during recession times. This is not a traditional recession. It is much worse than that and we have never seen times like these, at least not in our lifetime.
I am not arguing your point, because you are right. Taking our money out of the stockmarket will not help the market, but it will help us smalltime investors keep at least some of our hard earned money. I was lucky to be paying attention to what was coming before it hit, so I got out before the crash (which we are still going through).
When we reach rock bottom, I will re-invest in the stockmarket, but not until that time. For now I will be happy making 2 to 3% interest and keep investing, just not in stocks.
I believe it will be another year or two before we reach rock bottom, and we will not recover like we have in past recessions. Just what I believe. Like I said, this is like no recession we have ever been through, and is starting to turn into something more like a depression.
I could be wrong, and honestly, I hope I am. I am just as scared as the next guy and am only trying to protect myself and hold tight to the money I have earned until a time when I think I can use it to make more money. Or until a time when I have to use it for my wife and I to survive.
Traditional recession.. wasn't aware there was such a thing..lol 6 month continual decline is the definition.. there is nothing traditional about this..

at any rate, I used the historical data of the stock market, and it has ALWAYS rebounded.. Just a matter of time, and again, I have time on my side.
Ayuh

Scarborough, ME

#50 Nov 13, 2008
I hope you make out well and I hope you are right about the rebound. I question how long it will be before this happens and can't help but wonder if we will ever fully rebound. We have quite a ways to go before we hit the bottom, and many more levels of businesses to fail. People are scared and are holding tight to their money, forcing more businesses to close, further driving up unemployment(repeat ad-nauseum).

I deeply fear the house of cards is just starting to fall.

I hope Obama can make good on his hopes to create millions of jobs by investing in America and taxing those who sent our good American jobs overseas. I have my doubts that anybody can stop this freefall, but all we can do now is start to move in the right direction for the sake of all Americans.
Mazikeen

Philadelphia, PA

#51 Nov 13, 2008
Ayuh wrote:
I hope you make out well and I hope you are right about the rebound. I question how long it will be before this happens and can't help but wonder if we will ever fully rebound. We have quite a ways to go before we hit the bottom, and many more levels of businesses to fail. People are scared and are holding tight to their money, forcing more businesses to close, further driving up unemployment(repeat ad-nauseum).
I deeply fear the house of cards is just starting to fall.
I hope Obama can make good on his hopes to create millions of jobs by investing in America and taxing those who sent our good American jobs overseas. I have my doubts that anybody can stop this freefall, but all we can do now is start to move in the right direction for the sake of all Americans.
hope the same.. however, you are fooled by obamas articulated bad ideas.. I dont know what to say, but I hope the best, and dont want to see failure.. My kids are depending on this country being strong when they are able to contribute.
t rex

Warminster, PA

#52 Nov 13, 2008
Mazikeen wrote:
<quoted text>
I Love the pocono's!
We do too. I spend as much time as I can up there. 9 more years to work, and I'll spend even more time. Good luck to you and yours.
Ayuh

Scarborough, ME

#53 Nov 14, 2008
Over 500,000 people signed up for unemployment benefits last month alone. Let's see what this month brings. I'm afraid things are winding down and eventually will stop.

Tell me when this thread is updated:

Subscribe Now Add to my Tracker
First Prev
of 3
Next Last

Add your comments below

Characters left: 4000

Please note by submitting this form you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator. Send us your feedback.

Camden Discussions

Title Updated Last By Comments
ME Who do you support for Governor in Maine in 2010? (Oct '10) Sep 12 Half a Bubble Off 121
Rockland - Genealogy - Family History (Jul '08) Sep 5 Dona P 4
Trouble behind Maine's prison bars (Feb '13) Aug '14 scooter 2
Spear May Stover Aug '14 Interested 1
More than 400 cruise ships - carrying 265,000 p... Jun '14 Susan 1
Ugro guilty of sex assault, drug furnishing (Oct '06) Jun '14 Anon 37
Tonight 6pm - Homemade Tempeh & Natto presentation Jun '14 betsy shipley 1
•••
•••
Camden Dating

more search filters

less search filters

•••

Camden Jobs

•••
Enter and win $5000
•••
•••
•••

Camden People Search

Addresses and phone numbers for FREE

•••

Camden News, Events & Info

Click for news, events and info in Camden
•••

Personal Finance

Mortgages [ See current mortgage rates ]
•••