Nov 3rd, 2008
You Can Have My 403(b) When You Pry it From My Cold, Dead, Hands
There hasn’t been a ton made out of this (and some that is seems very political), but this past month Teresa Ghilarducci, professor at the New School of Social Research (I’ve never heard of either her or the school) testified before a House of Representatives subcommittee on not just eliminating preferential tax treatment of 401(k), 403(b), and similar plans, but her idea on having workers trade in those accounts for “guaranteed retirement accounts” which would have the government add $600 annually into it and pay about a 3% return with an adjustment for inflation.
This is possibly the worst financial idea since the 401(k) debit card.
I’m sorry, but the 401(k) and equivalent plans are some of the best things to ever happen to individual investors. They offer tax advantages and the ability for the investor to (at least in large part) manage their own money, many times with exceptionally low costs and great diversification. My 403(b) administrator is Vanguard and has a brokerage option, allowing me to invest in close to anything I want with very low costs.
If I wanted an annuity, I’d have gotten one.
If this one becomes law, maybe it’s time to think about moving overseas.
[...] says “you can have my 403(b) when you pry it from my cold dead hands.” LOL! You da man [...]
[...] Uncommon Cents: Ryan is aghast that some professor would question the preferential tax treatment that’s awarded to 401ks, 403bs and other similar retirement plans. [...]
[...] Uncommon Cents: Ryan is aghast that some professor would question the preferential tax treatment that’s awarded to 401ks, 403bs and other similar retirement plans. [...]