Can I withdraw ROTH 401K somehow?

[Yaba Daba Do]

Worked out good for many

And for many it won't. At the very least they will have to cut future benefits. I'd much rather have control of my own money that was contributed for me than have to rely on someone else to pay in for me to get my benefit (think social security).

 

[Yaba Daba Do]

If the money was contributed to everyone's personal 401k instead, and was just put into an index fund, they would have better returns meaning more money and would have more certainty about their future. Instead younger workers have to plan like there will be no pension for them and treat whatever they do get as a bonus come retirement.

 

[brown_trousers]

Worked out good for many

It worked out well for me in the west. But im not not selfish enough to ignore the disaster that decision was for many teamsters. We would all have have been better off keeping our UPS pension dollars in a UPS only fund.

 

[Yaba Daba Do]

One of the problems with pensions is they are not allowed to invest the funds in a way to get the growth they need. If they were allowed to put the funds in an S&P index fund, which is a very safe investment, the average annual return would be a little over 10%. This is not being optimistic, this is the average annual return since the inception of the S&P 500 in 1928. Since the S&P 500 is all stocks pensions are not allowed to invest everything in index's like this because they are considered "too Risky". Average annual pension fund returns are somewhere between 5-7%. This is a huge difference especially with the amount of money we're talking about. I'm not trying to say that everything in the pension fund should go into the S&P, but there are other investments such as mutual funds and index's that could be invested in to diversify and get similar returns. Now all of this that can't be done in your pension, can be done in your 401k.

 

[1989]

And for many it won't. At the very least they will have to cut future benefits. I'd much rather have control of my own money that was contributed for me than have to rely on someone else to pay in for me to get my benefit (think social security).

Funny, I was saying this on here in 2008. And questioned what was gained in ‘97. The union elite said I should turn in my union card.

 

[Brownslave688]

One of the problems with pensions is they are not allowed to invest the funds in a way to get the growth they need. If they were allowed to put the funds in an S&P index fund, which is a very safe investment, the average annual return would be a little over 10%. This is not being optimistic, this is the average annual return since the inception of the S&P 500 in 1928. Since the S&P 500 is all stocks pensions are not allowed to invest everything in index's like this because they are considered "too Risky". Average annual pension fund returns are somewhere between 5-7%. This is a huge difference especially with the amount of money we're talking about. I'm not trying to say that everything in the pension fund should go into the S&P, but there are other investments such as mutual funds and index's that could be invested in to diversify and get similar returns. Now all of this that can't be done in your pension, can be done in your 401k.

The bigger problem I think is that when the market tanks they have to keep paying out the same amount every month. So not only does the value drop but they keep pulling money out. So it just makes it harder to recover.

An individual can do a few things. They can cut expenses and not make any big purchases while the market is down. They can keep a year or 2 worth of income in a safe investment to withdraw from when the market tanks.

 

[brown_trousers]

Funny, I was saying this on here in 2008. And questioned what was gained in ‘97. The union elite said I should turn in my union card.

Yep, that does seem to be the mentality. The union thugs want to crucify you, if you dont agree with every idea they have. Free thought is not allowed