FINANCIAL: Not so sure about ‘Super Catch-Ups’ for 401(k)s

Monday, January 20, 2025

https://www.barrons.com/articles/401k-retirement-super-catch-up-contributions-e2358dd8?mod=past_editions

How to Make the Most of the New ‘Super Catch-Ups’ for 401(k)s
By Elizabeth O’Brien
Updated Jan 09, 2025, 8:53 am EST / Original Jan 09, 2025, 2:30 am 70EST

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Savers in their early 60s can sock away nearly $35,000 in their 401(k) account for retirement in 2025, thanks to the new “super catch-up” rules. The higher contribution limits aren’t a slam dunk for everyone, though, and you may need to make adjustments to other retirement accounts to maximize your savings.

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Unfortunately behind a paywall.

I’m not so sure that if I was 60 and had 35k$ to spare that any tax deffered savings plan would be the course I would chose.

Tell me what the inflation rate will be between now and say age 70 and that might be a case of getting out “depreciated dollars”.  For the very rich in a high tax bracket, the tax savings MAY offset the loss of “purchasing power”.  Everyone else has to guess what reality will have to offer.

I’m no Warren Buffet By far, I’ve made some great trades and some terrible decisions.

YMMV

I am a firm believe that you can’t trust the Gooferment, its politicians and bureaucrats, or any “celebrity spokesman”.   If you see it on TV, hear it on radio, or read it on the net, then ask “cut bono”.  Who’s paying for the advertisement?  Even if you can see it, some one is getting a cut.

I’m old enough to remember lessons from a family friend who lived thru the Weimar Republic inflation. Wife would go to the old man’s office at lunchtime every day, take whatever he earned that morning, and run out an buy something,  Anything!  When she spoke of it, her hands trembled in fear almost 50 years later.  Who she buy the “right thing”, or anything. Or be left with a handful of worthless paper.  Made a big impression on me.

So where ever you put that “extra” 35k$, make sure it’s money well spent.

I’d select gold rounds, silver rounds, bitcoin, or goldbacks.  Probably some mix of the four.  Take the tax hit now and avoid the “inflation tax”.  Probably be some complex math to say that is “bad advice”, but that would be my choice. 

As always YMMV and faiwwypfi (Free Advice Is Worth What You Pay For It! ?zero?)

See you on the other side to decide if I was more right than wrong.

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GOVEROTRAGEOUS: What is an intergenerational, income-transfer, wealth-redistribution welfare program that takes money from those who work and gives it to those who don’

Wednesday, March 31, 2021

https://tenthamendmentcenter.com/2021/03/28/the-true-nature-of-social-security-revealed/

The True Nature of Social Security Revealed
Laurence M. Vance
Laurence M. Vance is a policy advisor for the Future of Freedom Foundation.He is the author of over a dozen books, including The Revolution That Wasn’t. Visit his website:www.vancepublications.com. 

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Yet the vast majority of Americans still believe that retirees are entitled to Social Security benefits because they paid into the system their entire working lives.

But that couldn’t possibly be true. Not if the government can withhold half of your benefits and tax you up to 85 percent on the rest of them. If Americans are entitled to Social Security benefits because it is “their money,” then it shouldn’t matter how much money they make after retirement. Their income shouldn’t trigger the taxation of their Social Security benefits.

There is, in fact, no connection between Social Security taxes paid and Social Security benefits received. Benefits are calculated by an arbitrary formula that Congress can change at any time. Even worse, there is no contractual right to receive benefits. When Congress passed the Social Security Act of 1935 (H.R.7260), which was signed into law by Roosevelt on August 14, 1935, it put Social Security benefits in Title II and Social Security taxes in Title VIII with no reference in either title to the other.

So if Social Security is not a retirement plan, a trust fund, an annuity, an insurance program, a savings account, or a pension fund, then what is it? The true nature of Social Security is that it is an intergenerational, income-transfer, wealth-redistribution welfare program that takes money from those who work and gives it to those who don’t. And if that is the case, then Social Security — as much as food stamps, Section 8 housing vouchers, cash payments, and every other form of welfare — should be eliminated.

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Bottom line: It’s not YOUR money. It is gigantic Ponzi scheme.

“We, The Sheeple” have been defrauded.

Yes, they SHOULD HAVE KNOW that Gooferment is immoral, ineffective, and inefficient. As well as untrustworthy.

Suckers!

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MONEY: Error Employees Make

Saturday, August 25, 2012

http://www.ricedelman.com/cs/pressroom/pressroom_detail?pressrelease.id=3234

The Most Common Error Employees Make

For Immediate Release
August 10, 2012

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Unfortunately, only 9% of the nation’s 60 million workers who are eligible to participate in 401(k) plans contribute the maximum, according to the Employee Benefit Research Institute. The Plan Sponsor Council of America says only 5% of employees do so. And a recent survey by CouponCabin found that 73% of Americans aged 18–34 — the group whose long-time horizon offers them the best chance of creating wealth by retirement — don’t invest for retirement at all.

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I’m not a “financial advisor”. Nor do I play one on TV. 

Remember the sources of my education: I’m just a fat old white guy injineer with: Law “degree” from watching Judge Judy; Medical “degree” from watching Doctor Phil; Building “degree” from watching “Holmes on Homes”; Investing “degree” from reading about Bernie Made-off; and creating caring human relationships from studying the movie roles of Gunny Ronald Lee Ermey!

And, while generally and usually agree with Ric, and by way of disclosure I am a Customer of Ric’s, I think I’d like to quibble with him a little.

Not that folks should be worried about the future and saving everything they can. He and Dave Ramsey together are good pundits. But I disagree with both around the edges.

But back to Ric and 401Ks.

There are at least three specific incidents where the 401K advice hits a boundary.

(1) Some 401Ks REQUIRE you to rollover into the company’s 401K. There is the infamous case of the guy who rolled a million dollar PGE IRA into Enron and is now living on welfare or social security.

(2) Some 401Ks are really “house organs”. The CFO makes a sweetheart deal and the employees get screwed. High fees, limited choices, and you name it.

(3) Some 401Ks are not worth chasing to get the limited match.

Then there are some TINFOILHAT considerations:

(A) The Gooferment desperate for money needs 13T$. The IRA / 401K holding is 14T$. All the politicians and bureaucrats have to do is to twist the arms of ~2500 “custodians” and give the “owner” an “enhanced social security benefit” and all their portables are solved. For YOUR OWN GOOD of course. (Yeah, it can’t happen here — the FDR gold grab, GM bailout, … … the Japanese Internment, Trail of Tears, … … yeah trust your Gooferment.

(B) The 401K is in dollar denominated assets.What if the Fed does QE3+4+5 … and we get a Carter stagflation? Remember 21% Treasury Bills that were losers in a 30% inflation world? The dollar has lost 99% of its purchasing power in 30 or 40 years at a few percent. No doubt that I like nickels, silver and gold.

All I’m saying is do trust. Have a Plan B, Plan C … and some bullion in your basement.

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MONEY: Plan to work until your 90?

Monday, June 11, 2012

Bloomberg news: AIG Chief Sees Retirement Age as High as 80 After Crisis

Jun 4 (3 days ago)

American International Group Inc.
Chief Executive Officer Robert Benmosche said Europe’s debt
crisis shows governments worldwide must accept that people will
have to work more years as life expectancies increase.

http://bloom.bg/LdwGLe

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Anyone surprised?

Reality has to set in sometime!

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