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The idea of the 401k is such an amazing hustle for the wealthy. * Middle-class Americans consistently pump money into the stock market generically (not informa

by bo1024 7y ago

The idea of the 401k is such an amazing hustle for the wealthy. * Middle-class Americans consistently pump money into the stock market generically (not information trading), raising the value of all your stocks over time. * Now you have a gun to their head to support policies that pump up the value of your stocks even more. * Also, when shit hits the fan, they can't easily cash out, but you can. Both on a mega-scale (recession), and individual stocks (when companies tank, you sell first, and 401k index or diversified funds take a hit). I'm not an expert in this stuff but it smells from miles away.

ardy42 7y ago
> The idea of the 401k is such an amazing hustle for the wealthy. You make a very interesting point! I wonder what a "reverse 401k" program would look like (e.g. box the wealthy into aligning their actions with the interests poor/middle class while only marginally benefiting themselves).
- q92z8oeif 7y ago
  > aligning their actions with the interests poor/middle class Any attempt to recognize classes exits will lead to class war. Everyone is upper class, or waiting to join upper class, anytime now.
  - eli_gottlieb 7y ago
    Class war is good.
- SketchySeaBeast 7y ago
  Taxes?
- nitrogen 7y ago
  I wonder what a "reverse 401k" program would look like (e.g. box the wealthy into aligning their actions with the interests poor/middle class while only marginally benefiting themselves). Pensions? Those also don't seem to work all that well.
jazzyk 7y ago
Just a pedantic note - I have most of my 401K money in Certificates of Deposit, so you do not have to pump the market. However (thanks, Federal Reserve!), you get punished with interest rates below inflation, so people, increasingly desperate to protect their savings from inflation, put their money in risky investments (not just the stock market, also overpriced real-estate, etc).
thedragonline 7y ago
If you research the history, you discover that the 401k was designed for the C-suite, not ordinary workers. Some calculating Wall Streeter(s) somewhere decided that it's a reasonable retirement vehicle for ordinary shlubs. It is not. See this: https://www.pbs.org/wgbh/frontline/article/teresa-ghilarducci-why-the-401k-is-a-failed-experiment/ https://www.pbs.org/wgbh/frontline/article/teresa-ghilarducc...

by bo1024 7y ago

ardy42 7y ago

> The idea of the 401k is such an amazing hustle for the wealthy. You make a very interesting point! I wonder what a "reverse 401k" program would look like (e.g. box the wealthy into aligning their actions with the interests poor/middle class while only marginally benefiting themselves).

q92z8oeif 7y ago
> aligning their actions with the interests poor/middle class Any attempt to recognize classes exits will lead to class war. Everyone is upper class, or waiting to join upper class, anytime now.
- eli_gottlieb 7y ago
  Class war is good.
SketchySeaBeast 7y ago
Taxes?
nitrogen 7y ago
I wonder what a "reverse 401k" program would look like (e.g. box the wealthy into aligning their actions with the interests poor/middle class while only marginally benefiting themselves). Pensions? Those also don't seem to work all that well.

jazzyk 7y ago

Just a pedantic note - I have most of my 401K money in Certificates of Deposit, so you do not have to pump the market. However (thanks, Federal Reserve!), you get punished with interest rates below inflation, so people, increasingly desperate to protect their savings from inflation, put their money in risky investments (not just the stock market, also overpriced real-estate, etc).

thedragonline 7y ago

If you research the history, you discover that the 401k was designed for the C-suite, not ordinary workers. Some calculating Wall Streeter(s) somewhere decided that it's a reasonable retirement vehicle for ordinary shlubs. It is not. See this: https://www.pbs.org/wgbh/frontline/article/teresa-ghilarducci-why-the-401k-is-a-failed-experiment/ https://www.pbs.org/wgbh/frontline/article/teresa-ghilarducc...