Video:60 Minutes - Those Who Are 401(k) Screwed & Even Unemployed; Wall Street Racket

[Brandonf]

Quote from short&naked:

WRONG. Any person with half a brain should know that money doesn't grow on trees.

It's funny how many of the same people who freak out that I would dare to try to sell something of value to a person have no problem with what Wall Street has done to the average person and to our country as a whole.

 

[nutmeg]

One thought I try to keep in mind, what if this is as good as it gets?

If the 50 - 60 year olds lose their jobs and along with it health insurance, assets are going to be selling faster than code blue with zero choice when the starbucks geezer gets a heart attack and no insurance.

 

[nkhoi]

 

[short&naked]

Quote from Brandonf:

It's funny how many of the same people who freak out that I would dare to try to sell something of value to a person have no problem with what Wall Street has done to the average person and to our country as a whole.

Where did I say that I have no problem with what Wallstreet did? However, this is a dangerous world and it is our own responsibility to protect our selves against it. You are making excuses for boomers who thought they could cheat the system. Darwin is indeed alive and well

 

[dandxg]

I fell horrible that these folks lost so much. You are hearing a lot of these horror stories. One thing a lot of them have in common they had their money in speculative investments at the same time they needed the money, within a few years. If you need the money in a few years what the hell is it doing in a speculative investment? Come on take some responsibility for acting so careless.
A dad was talking on Clark Howard's show how the college fund for his kids had taken a bath and doesn't know what to do know that his daughter needs the money? The damn money should have been in a money market or CD at minimum.

 

[RoughTrader]

What I don't get is that people are crying over paltry amounts. $140k for the guy, several tens of K for the fat lady. It hurts to lose money, but it literally takes millions (likely more than $1MM) to be able to live comfortably for 2 or 3 decades in retirement without income.

People's 401k's have taken a hit, but from the start the funds didn't seem to be enough to sustain more than a few years into retirement. Maybe I'm missing something...

rt

 

[ByLoSellHi]

Quote from RoughTrader:

What I don't get is that people are crying over paltry amounts. $140k for the guy, several tens of K for the fat lady. It hurts to lose money, but it literally takes millions (likely more than $1MM) to be able to live comfortably for 2 or 3 decades in retirement without income.

People's 401k's have taken a hit, but from the start the funds didn't seem to be enough to sustain more than a few years into retirement. Maybe I'm missing something...

rt

You're not missing anything except that the news story of the next decade will be how many seniors and retirees will be eating pet food because they either have no retirement nest egg, or because they have so under-saved for retirement.

This is now true more than ever given that home values have plunged anywhere from 20% to 80% depending on market area, and so few people can even sell their homes at any price given the loan market and number of active buyers.

 

[WinSum]

Don't blame the victims.

Not all investment losses on 401(k) resulted from poor judgement on placing money in speculative assets.

Some of the pension fund assets were placed in AAA securites. AAA rating meant not speculative before the Sept 2008. The 401(k) retirees were lied to.

 

[Landis82]

Quote from Brandonf:

It's funny how many of the same people who freak out that I would dare to try to sell something of value to a person have no problem with what Wall Street has done to the average person and to our country as a whole.

Whatever happened to personal responsibility?

Seems to be a very rare commodity these days.

 

[Brandonf]

Quote from Landis82:

Whatever happened to personal responsibility?

Seems to be a very rare commodity these days.

I agree with that too Landis, but you should be able to trust the advice of a professional. Retirement is not cancer of course, but its pretty serious in any event..and when I was sick I never had to worry about buyer beware with doctors. People who are not financially sophisticated should not have to worry about those who are taking them for suckers.