GAO: 401(k)s Primarily Benefit the Wealthy

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There are close to 60,000 millionaires getting an extra $2,200 a month in Social Security benefits. They don’t need it but they won’t give it back to the government. So I started “I Don’t Need My Government Money Scholarship Fund” at Frederick Community College. This is where I’m putting my Social Security Money and I’m looking for other Old Farts with benefits they don’t need to join me. For $1,000 a student can pay tuition at community college, and that’s a couple of dinners with friends at a fancy restaurant. Why wait for the government to solve the problem? .... Matthew Lesko, 68 years old
http://leskocollege.blogspot.com/

matthew Lesko of MD 4:22PM May 18, 2011

Saying that employees earning more than $126,000 are more likely to hit the maximum contribution limit of $16,500 than those earning less than $52,000 is about as useful as pointing out the sun is hot!!! Of course high income employees are able to save more, it's called "Disposable Income". They also forgot to mention these same high income employees will likely need more savings in retirement to live at their pre-retirement standard of living.

Grapefire of CT 8:18PM May 10, 2011

I made less than $50,000 for most of my career. But, I started by saving a set percentage, then each year I increased it as I got raises -- until I was saving the max permitted by the 401-k plan (usually 10% of income). I also saved in a Roth IRA (couldn't use a traditional IRA because I already had a retirement plan at work). By the time I retired, I had a little over $250,000.
That's not great, but it was after the 2001 market crash. And, I had "early retirment" as one of those "over 50" that was cut during the upheavals of the last decade (the only severance pay I got was less than $4,000 -- after many years with my last employer). That pretty much stopped my savings program. But at least I HAD the money and I could take it with me because it was MY account. Many of the older folks that were counting on pensions took MAJOR cuts in those pensions when they were forced into "early retirement".
You have to LIVE WITHIN YOUR MEANS -- when you are working and when you retire. Don't buy the "most house that you can afford". Don't put the new SUV on your home equity line because "you deserve it". And, when you retire -- get your spending and expenses in line with your retirement income as SOON as possible.

Quick of TN 3:42PM May 06, 2011

My wife & I (neither went to college) started our marriage in 97' making a combined $76k; 1 car payment and $6k in debt (for the modest wedding). We have had opportunities along the way and now live debt free with $900k in savings, living in So Cal.
We save the max; live like we still make $76k; and don't buy every pc o crap the world burns into your brain that you "need" to survive (can you say IPod, IPhone, IPad?) Don't rely on the government to "pay you a living wage"...go out and get it on your own. Don't rely on Soc Security...save for your own as you won't get as much as soon as you think anyway. If you get it, you deserve every penny as you and your employer puts in 12% of your salary to get it. Medicare, well, that's a problem, but we all know that, right?
Save, Save, Save is my motto. We'll retire early at the rate we've been going. Fyi, for reference, we are 40 & 46 making combined $225k annually now...

Shurewhitey of CA 3:21PM May 06, 2011

Seems like our government would take the hint and make sure that all of the citizens are taken care of with Social Security. One has to pay the people a living wage before they can save for retirement and not live paycheck to paycheck or on credit as most do. Who, today, can survive with an intermittent job (3 to 19 hours per week in retail and food service) and some people have to have like 3 jobs to make up the difference which is now wasted on gasoline going to the various work places. Think about it. Read another article today where they state that the US income equality is worse than in Egypt and I saw that back in 1966 when I first stepped foot in this country. I was shocked and thought I stepped back in time 100 years!

Viola Perry of TX 8:06AM May 04, 2011