Economist still think that contributing to a 401k will help you retire. In a voltile economy you'd be better off putting moeny in your own pocket. Think of this most companies only hire workers part time and flip them once they are elegabe for benifits. All that time you pay into a 401k legally if you don't stay with that company for a certain period of time you loose that benifit and the company pockets all that moeny that you put in. So do you really think that 401k's are a good idea when a company has total control over the accounts. What are you thoughts on this?
2007-09-30 16:17:18 · 3 answers · asked by Vivianna 4 in Business & Finance ➔ Personal Finance
you really have no clue on how a 401k works. First, most companies do not allow people to contribute to a 401k until they've been there for a year. So you pay in nothing until then. Second. If you pay money in then it's yours. You don't forfeit anything if you leave before any certain period of time. A company can require that you work that period of time before you are entitled to THEIR contributions...but not yours. Third, the company has ZERO control over the assets. They contributions are put into a trust that the company can't exert control over and are required to insure.
Trust me, you're more likely to have your house robbed then your 401k stolen.
2007-10-01 05:53:56 · answer #1 · answered by digdowndeepnseattle 6 · 0⤊ 0⤋
The money that you contribute to your 401k plan is your money. If the company is still in business, and doesn't give it to you, there's a US government agency you can appeal to for help. Its either the Dept of Labor or the Pension Benefit Guarantee Board, or something like that. If the company, goes out of business, they are supposed to help then, too. Companies do not typically have total control over the assets in a 401k plan.
The Enron deal was that many employees had Enron stock, and the stock became worthless because the whole company was like a house of cards. They really didn't own the assets that they said that they owned.
Are you saying that you lost money in a 401k, or is this just a political statement?
2007-09-30 16:36:09 · answer #2 · answered by hottotrot1_usa 7 · 0⤊ 0⤋
i havent been scammed by a 401k plan but it is not unheard off. look at all the enron employees for example. sad case especially for the older employees who were near retirement before that scandal happened
2007-09-30 16:25:09 · answer #3 · answered by Anonymous · 0⤊ 0⤋