The Millionaire Cop Next Door

[hornadylnl]

The pension sword cuts both ways. A pension is only a promise. Whoever holds that pension can change it or default on it at any point in time.

So, governments could refuse to pay pensions, or reduce pensions.

A 401k is money in the "bank". No one can just arbitrarily take that from you like they can with a pension.

But the government won't cut those pensions. The only way they will do that is in the event of total economic collapse. Otherwise, they will just raise taxes to cover the shortfall. Everyone forget about the GM and Chrysler bailout already? Does anyone believe that was about anything other than bailing out the unions? The public sector unions will never stand for an end to pensions.

401k's would be much better than Social Security but do you ever see it going anywhere? Don't forget that 401k's are only good so long as government keeps their hands out of them. They've been rumbling for years that they want to take those over as well.

I have roughly $30k in my 401k. I'm about ready to stop my contributions to it as I keep pumping money into it every week and at best, it's staying flat. What then when I retire and the government decides it's not fair that I have money to live on while the other 90% of irresponsible people don't? They'll either take them over or tax them so highly that I effectively don't get any money out of them. I'd be better off putting my retirement money in gold and burying it.

 

[ATOMonkey]

If the government ever seizes private assets, like 401k accounts, you've got bigger problems to worry about, like how early you need to show up in the bread line.

Also, governments have already cut hours and benefits, pensions are right around the corner.

The teachers union recently experienced a crisis when their pension fund went bankrupt. It's not like it CAN'T happen.

 

[JBusch8899]

If the government ever seizes private assets, like 401k accounts, you've got bigger problems to worry about, like how early you need to show up in the bread line.

The way the current administration and Congrss has been harping upon the "rich", along with the Robin Hood mentality they portray, I'm rather surprised that it hasn't happened yet.