looking-for-a-fix-for-retirement-security
This article is from Yahoo about the ideas President Obama is putting forward.
Here is an idea. To get people to save more how about letting people deduct $2 from their income for every $1 they put into a tax deferred account above some contribution minimum.
So for example the first $3000 (or whatever number) you deduct $1 per and above $3000 you deduct $2 per. Someone putting $10,000 into a 401k would be able to deduct $17,000 ($3000 X $1 plus $7000 X $2) from their income for tax purposes.
Additionally I would make the penalty for non-hardship withdrawals more onerous.
Is this idea crazy?
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7 comments:
I don't think so, but it would probably have to differentiate between company money and personal contributions.
I'd also love to see government bonds sold at a discount, say 99 cents on the dollar, if held for some predetermined period.
Nobody seems to think very creatively about things like this.
I think any idea that puts the primary responsibility for retirement on the future retiree is worth oonsidering.Getting individuals to take advantage of this logical,generous proposal is another matter. Our present retirement saving incentives are not used by many.
The current entitlement mentality that is pervasive needs to be treated as a destructive addiction. And withdrawl treatment for this powerful narcotic can be hell.
Roger for Retirement Czar!
T
The average person isn't smart enough to understand the advantage of this - assuming you're shooting for the average person.
Just 30 S&P points from the 200 day EMA, which also corresponds to the November lows...am wondering if that is our next stop on this never ending roller coaster ride to nowhere....
Not really shocking news: Wisdomtree is gonna liquidate some ETFs.
http://www.etfguide.com/news/665/WisdomTree-to-Liquidate-10-ETFs/
Where I work the 401K company contribution is 3%, and there is a 1 for 1 match on the next 6%. I have been told less than half the employees save the 6% for the free match. These are not minimum income hourly jobs. The mean hourly wage is over $60,000 a year. There is little or no economic discipline in our work force. Your ideas are good, they just would not be acted on by the majority of the employed.
Whats going to help the current retirees, especially those in upper 70's and above?
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