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(Marketwatch)   EU finally figures out how to regulate their financial system. Will be allowed to sit at the adults table at the next G-8 conference. Positive note: Your 101(k) might be a 201(k) by the end of the day   (marketwatch.com) divider line 17
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1255 clicks; posted to Business » on 29 Jun 2012 at 10:10 AM (2 years ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2012-06-29 09:35:18 AM  
What is a 101(k)?
 
2012-06-29 10:21:29 AM  

minoridiot: What is a 101(k)?


Sounds like an entry level economics class at the local community college which subby obviously forgot to take.
 
2012-06-29 10:39:30 AM  
A 101(k) is what's left of your $300,000 nest egg after the speculators are done gambling with it.
 
2012-06-29 10:43:53 AM  
I wondered why the Dow was up 230 points this morning.

Anyway, you better sell before news of Miley Cyrus' pregnancy knocks it down 300 points next week, but then get in before the announced production of Ghostbusters 3 pushes it back up 200 points.
 
2012-06-29 11:07:02 AM  

Rapmaster2000: I wondered why the Dow was up 230 points this morning.

Anyway, you better sell before news of Miley Cyrus' pregnancy knocks it down 300 points next week, but then get in before the announced production of Ghostbusters 3 pushes it back up 200 points.


Damn, could you imagine what an Evil Dead 4 would do to the market?
 
2012-06-29 11:42:26 AM  

Rapmaster2000: I wondered why the Dow was up 230 points this morning.


Heh. I had the same thought when I looked at my stock account this morning: "All right. What did you do, Ray?"
 
2012-06-29 11:46:38 AM  
Cripes. This headline just sucks.
 
2012-06-29 11:51:33 AM  

BolloxReader: A 101(k) is what's left of your $300,000 nest egg after the speculators are done gambling with it.


Sounds to me like you're doing it wrong.
 
2012-06-29 12:04:22 PM  
Hmmm...

Solving the debt problem by getting deeper into debt.

People really are f*ck tards.
 
2012-06-29 12:13:20 PM  

TIKIMAN87: Hmmm...

Solving the debt problem by getting deeper into debt.

People really are f*ck tards.


You're one of Merkel's alts, aren't you?
 
2012-06-29 12:38:42 PM  
Tomorrow: Oops, did we mention that there's still no realistic way for all of Spain's banks to survive?
 
2012-06-29 01:18:04 PM  
I don't think subby knows much.
 
2012-06-29 01:40:32 PM  

RumsfeldsReplacement: BolloxReader: A 101(k) is what's left of your $300,000 nest egg after the speculators are done gambling with it.

Sounds to me like you're doing it wrong.


Not at all. The speculators don't get a penny from me. My parents OTOH went through this. Hell, one of my clients pulled his money from the stock market when that collapsed and put it into real estate before stocks recovered. Lost about 80% of his net worth by the time he liquidated his real estate to convert from speculation to something providing actual income for retirement. I don't hold a securities license so I wasn't able to provide any advice to him as his financial stability exploded, except to discuss fixed income products. By the time he could get liquidated though fixed annuities went from 3% to about 1% annual return as Treasuries became all the rage. I ended up telling him there was no viable strategy I could help him with as a producer. Growth annuities were still more attractive than CDs due to being tax-advantaged, but he was in full panic mode and kept it all in cash. He eventually started creating income streams with his piggy bank but he was done with the markets as a whole. Too many bubbles, too much money pursuing too few investment opportunities. We still see it going on today in various markets.

I have my own strategies that don't rely on perpetually rising prices or market timing. I focus on steady income streams rather than price speculation. I also stay away from the stock market altogether for the most part. When 80% of the transactions that matter take place in dark pools rather than the open market, I consider it more of a sucker's game.

Of course, I'm self employed so I can't even get into a 401(k) if I wanted to. But a 401(k) is about the last reason I'd accept a position somewhere. The concept is reasonable for people who don't know how money works, but the execution is frequently heavily stacked against the participants. Your HR department is usually going to pass on whatever advice the administrator of the 401(k) suggests, and generally that is going to be whatever puts the most money into their pocket. There are two standards in the industry: advice that is suitable for the client, and advice that is in the client's best interests. Most plan administrators that I have known subscribe to the first, which allows them to maximize their income. But that extra income comes out of any upside that the plan participants may otherwise see.

In my quite heretical opinion the public would be better off if companies went back to the old "here's a gold watch and a SPIA" upon one's retirement. But we're not going to see that because the companies make far more money on more complex products. It also makes sense only if people didn't live for decades after retirement.

The mandatory minimum distribution schedule for retirement accounts pretty much guarantees that if you spend it all as you take it out you'll be effectively broke in your 80's, relying mostly on Social Security. With multiple income streams the government is more than happy for you to keep your investments in place because you're probably paying at least some taxes rather than sheltering your money. You don't need to execute a change in direction when you're in the getting-soft-in-the-head age and vulnerable to any predator who decides to be your best friend and take your check. SPIAs provide protection against this, but they are fixed income products and 30 or 40 years of inflation will destroy the purchasing power. Our lengthening lifespans work against us financially.

So yeah, in my viewpoint many many people are doing it wrong. I'm sure I'm doing it wrong in the viewpoint of many many people as well. But I have the relative luxury of understanding how products work, their weaknesses and strengths, and having people around me who have made themselves independently wealthy outside of the heavily promoted financial mainstream.
 
2012-06-29 02:18:56 PM  

opiumpoopy: TIKIMAN87: Hmmm...

Solving the debt problem by getting deeper into debt.

People really are f*ck tards.

You're one of Merkel's alts, aren't you?


Well, certainly he isn't a Keynesian. I too have wondered about EU governments issuing more debt to bail out the banks when the governments themselves are already teetering on the edge of bankruptcy as evidenced by Spain's yield on 10 year bonds hovering dangerously close to 10%. Add that we appear to be headed into another global recession as evidenced by the slowdown in Asia and the disappointing jobs numbers in the U.S.,, there doesn't seem to be a light at the end of the tunnel and how long can they possibly keep this up?

I hope I am wrong, but I just see this as the proverbial rearranging the deck chairs on the Titanic, or putting a band-aid on a cancer. After this little rally, I am a little tempted to short European banks, specifically Spanish ones.
 
2012-06-29 03:01:50 PM  
Hooray. My pissant $5,700 in mutual funds might be worth $5,800 by the end of the day just to be back at $5500 by the end of Monday
 
2012-06-29 07:28:10 PM  
So, they finally managed to con Germany. I guess it was inevitable.
 
2012-06-30 07:09:21 AM  

TIKIMAN87: Hmmm...

Solving the debt problem by getting deeper into debt.

People really are f*ck tards.


You really ant that bright, eh cupcake?

Seen a few of these troll posts from this account. Ignore listed
 
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