Avoid This 401(k) Trap

Its apparent we've once again been railroaded into participating in a plan (401K) based more on allowing others to make money on our money other then ourselves having a comfortable nest age in the years we will need it most. Have you ever asked why it is so hard as well as expensive to gain access to or gain possession of your 401K dollars? I have too. I must suspect the rules weren't written for us the holder. Our 401K accounts are the very reason the fund managers are earning millions in salaries and bonuses. It isn't their brilliants in investment knowledge nor their ability to protect our 401K account values. If it were then why might AI ask do we see our accounts shrinking by fifty plus percent and falling faster still? I fully believe we must demand changes be made to how and where our money is handed. It should be a given that the very fund managers that are paid to watch over them do little to protect us from lose or increased devaluation. It is after all our money not theirs. If I must wait years for a return on investment then so to should they wait years to earn their bonus pay in full. It should also be a given that I am able to pull any or all of the money out I wish at anytime for any reason I feel ism best to do so. It should be tax free if used to pay off a home or an educational expense. Tax should only be paid if it is used to reinvest and a profit of more then 40% is earned if withdrawn under a predetermined time frame such as five years or so. most of us lost better then half of our 401K earnings over the past few months and now if one needs it you must pay a premium as well as other expenses including taxes and penalties of which will eat the remaining money up to the point of leaving little to nothing of any account less then a hundred or so thousand, considering that very account was worth over two hundred thousand less then a year ago, thus we have been almost completely stripped of our retirement funds while others got very wealthy managing those very funds we now find almost nonexistent.In closing we need more choices, control and less taxes and less penalties period! Otherwise we will see the end of the 401K due to what it has become based on today's 401K rules and regulations. They simply do not work for the investor yet work well for the 401K fund managers very well I'd say!

Gib of SC 9:22AM February 26, 2009