It makes sense, since current law also allows clients to seize managers’ personal assets to recover losses, amiright?
if they ever removed the 401k tax deduction. i totally would never save. lol
yea… first 401k’s are used by corps to gut pensions, next they will gut 401ks and youll have people who work til they day they die (which will likely be a younger age due to lack of access to healthcare) this country is awesome lmao
The policy should be to raise taxes during economic booms and cut taxes during economic downturns. Simple! Elect me President!
There will become a certain point where repubs hit a conundrem… picture it now. 2150: Taxes are at 0%, repubs struggling to win an election after years of cutting taxes and no economic gain think up a plan. One says “Guys, lets go back to what has ALWAYS worked for us… cutting taxes! They even pay for themselves!” Brilliant they all think, one of the brightest ideas anyone has ever thought of.
While studying their proposal one comes upon a terrible fact - “we will turn rates negative! we cant have government handouts!”
Fin.
It’s kind of crazy people need to be incentivized to save for their own future
It will never get to that point because before it can dems will have expanded social programs to the point where no one actually works anymore and therefore no one pays taxes.
there are several reasons why i woudlnt:
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tax deduction, is immediate gain.
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lack of flexibility, now i dont have access to my cash, and its stuck in whatever mutual funds my employer has.
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10% penalty, if god forbid, i ever have to withdraw it.
pensions are essentialy like 401ks, and companies get a tax write off on it. so if anything 401k should be unlimited contributions :). haha (i keed i keed)
i’ll obvi still save, but i would rather save it in a brokerage/savings account.
I assume thats the natural end game. If 100% of things were fully automated and computers were making better decisions than humans and we were in a post scarcity world - its interesting to wonder what that would look like. Capitalism is great at creating progress but it also does a fantastic job of concentrating wealth. At a certain point capitalism in its current format wont make sense at all because the owners wont need to employ anyone to produce, and thus no one will have income.
i bet they said the same thing about picking cotton. i keed i keed. but you get what im saying. farming etc. manufacturing etc.
I do agree its absurd, however you need to think of how financially illiterate the average person is. We are constantly told we need to incentivize investment by the wealthy, naturally those with less resources have tougher time saving. In general the 401k system doesnt seem to be working. Not sure what the answer is but hopefully someone much smarter than me is working on it.
Which is a valid argument: But at a certain point machines will make better decisions than humans, and machines to manage and fix those machines. Some human intervention will be needed but with a growing population and dwindling need for a work force, something will have to give.
Yup. Thaler describes it in his book. https://www.amazon.com/Misbehaving-Behavioral-Economics-Richard-Thaler/dp/039335279X
solution is ubi, just tax the rich more. i honestly cant wait for the day when i dont have to work. lol
big fan of this
http://crr.bc.edu/briefs/australia’s-retirement-system-strengths-weaknesses-and-reforms-2/
Cursory glances at the weekly shopping behavior of my fellow neighbors over the past decade leads me to the conclusion that it is in no way surprising that the majority have little to nothing saved for retirement. The rate at which people spend every cent of their disposable income, or worse go into debt, on shit they don’t need is really depressing. The malls and shopping centers around here are utterly insane every weekend. And that’s considering a lot of people do their consumer product buying on Amazon.
Snark aside, what the heck is wrong with this? Working blows.
Especially pointless work like finance
The problem with it is that I, and presumably you, enjoy a lifestyle that is not supportable by current social programs and it will take an awfully long time for the economy to transition to the point that my lifestyle, and again presumably yours, can be supported by social programs. In the meantime, I, and presumably you, will continue to slave away to support not just our own families, but the ever growing number of families who decide that the lifestyle provided by social programs is good enough for them. If you could flip a switch tomorrow that allows me to maintain my current lifestyle, or even a slightly reduced one, without working, I’d say hell yeah. That’s not going to happen though. That utopia is an option that’s way, way, way out of the money for me.