Fidelity: 401(k) balances drop 12 pct. in 3Q - Chicago Sun-Times
Makes one wonder if they only just put that money in a regular savings account, instead of betting on Wall Street.
When the introduction of this scheme first came about, there was just something not right I told myself. Why should I give money to financial institutions that play on Wall Street, when the place I work at, pays a wage that I could set some aside into a savings account? It was the place I worked for that had an interest in Wall Street, not me. So when they came up with this scheme to take employees money for investing in Wall Street, I thought, "Are you insane?" Prior to the 401(k), pensions were handled by the union and employer. Companies invented the 401(k) to get the unions out of the way. Naturally, I'm under the impression some "Hush Money" was exchanged, because of the lack of crying foul by unions. Never once did a union rep tell other members that such a deal of this nature stunk.
The "Option" for not making contributions was always there. So those that did not, saw an almost equal benefit compared to those that did. Such an outcome like that, would make a person think twice. Yep, a regular savings account sure sounds like ones best bet against Wall Street any day. It's such a shame the "Lure" of quick cash made us forget basic math.
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