We don’t want to give you any more to worry about. But with the government making new power grabs every day, it’s important to stay alert.
That’s why we listened when you told us about Congressional hearings last month that questioned the one retirement program over which we still have a lot of control -- our 401(k)s. Of course, the stock portion of our 401(k)s has been getting creamed. And that’s led some folks to suggest that you can’t handle the risk…that the government knows better than you how to handle your own money.
One of those people is professor Teresa Ghilarducci, who was a star witness at the October hearings. She presented a plan to eliminate many of the tax benefits of 401(k)s and turn guidance of your plans over to the government. Here’s what she said about 401(k)s back in October: “They are fatally flawed. They’re too risky, and it’s not good policy to have workers run their own retirement plan. They want government help.” This week on Scoreboard, Rep. George Miller, the man who chaired the October hearings and a man who speaks highly of Ghilarducci, did everything he could to distance himself from plans to radically alter 401(k)s.
But here’s what Congressman George Miller said back in October, before he got an earful from his constituents: “This is an opportunity to really look at what value taxpayers are getting for the $80 billion [in 401(k) tax breaks]. What value is the saver and retiree getting from this plan? And are they really equipped to handle the risk?”
We’re glad the Congressman used Scoreboard to back away full throttle from his earlier remarks. But we're gladder still that our spotlight on the issue may have just made your 401(k) a little safer from the meddling hands of big government.
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