strictly anecdotal on 401Ks...and a question

[northernlights]

A couple weeks ago I read an article while at work (we only have access to finance pages) that the financial industry is advising (strongarming?) companies to increase company 401K investments to default at 8% and allowing employees to choose to modify or opt out of that. According to the article, it's working and most people are choosing to have 8% of their salaries invested. (or maybe, if they're like me, they are so overwhelmed struggling just to survivie they haven't yet found a moment to read the tiny print.) So I guess this is one of the ways they are now attempting to re-inflate the stock bubble. I tried to find the article after I got home, but wasn't able to.

Anyway, the other day in my mail I got a pin number for my 401K plan. Interesting, because I thought I'd waived all my benefits when I started this part time job.

And then today in my mail I got a notice that 3% (at least not 8%, benefit of working at a financial firm is they are cheap and don't want a bigger number to match) would be invested in my 401K unless I choose to opt out. If I want to opt out, I am to call them at the contact information provided below.

Here's where it gets *really* fun. THERE IS NO CONTACT INFORMATION PROVIDED. THERE IS A BIG EFFING BLANK SPOT instead. :rofl: :rofl: :rofl:

I will attempt to track down who to contact to opt out. I need every penny just to survive right now, and I think the market has no place to go but down for a good long time.

If I can't find where I opt out, does anyone know the government agency I should contact to advise I'm being scammed? x(

[exboyfil]

1. If you are being matched then, at all possible, do enough for

the match. It is the best investment that you can make. You could elect to stay in a cash mutual fund (all plans should have at least that option). After that consider spliting it up between the S&P500 and whatever bond funds which they may have. Right now no investment looks great (even cash with the potential for inflation and zero interest is unattractive). Unfortunately most 401(k) funds (and especially bond funds) are not very good. Low cost index funds are your best option to reduce risk and expense. I would be a little worried about a Long Term Bond fund right now because of the potential for later interest rate spiking.

If you don't get a match then never contribute to a 401(k) (unless you already have maxed out other options), you are better off with an IRA that you can control more fully. For example my brokerage IRA allows me access to Treasuries and corporate bonds along with ETFs (including short ETFs if you think the market is going down).

Your employer should have contact information (both your HR and the mutual fund company handling your 401(k)).

[northernlights]

2. this job is temporary

and I need the money now. It won't do me a damn bit of good if I freeze to death this winter. It gets to 15 below here. That's not something to eff around with. Not even for 50 cents on the dollar that may be there for me someday when I retire, which isn't going to happen anyway.

Bottom line is I've already been robbed of my retirement savings. There's no time to earn it back. I'll either win the lottery or work until I drop. I want no part of this society's 401K scams. Or any of the other scams. Just give me back my effing earnings, NOW, tyvm. x(

[dixiegrrrrl]

3. Go to your personnel or HR dept. They have the power re: deducts/ retirement plans.

Taking out money for 401 k under your circumstances is the same as an illegal tax.
You are right to trust your gut on this one.
You probably noticed that the big firms which have all of our retirement funds and pensions are claiming they are broke. The truth is our money was gambled away long long ago by them.
Don't let anyone tell you otherwise.
I moved all of my retirement funds to a safe place just in time. They are counting on most people leaving their money alone for 25 or more years, not bothering to check on it.

edit to add this link to a DU thread on pensions I just spotted:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x71679