The average 401K plan savings has gone down by 30% thanks to the economic downturn. That is a significant hit for a person who is about to retire today. You are left high and dry smack dab in the middle of your retirement plans because of the wanton greediness exercised by the higher echelons of the finance industry. You put your good faith in the US equity markets and at the end of the day you are shoved the tiny footprint in your face "FDIC Not Insured".
Why are some aspects of the 401k plan not FDIC insured?. The first $250,000 of a bank account are insured by the FDIC, why then is the principal that I deposit through my paycheck every payday not insured?. The capital gains on the principal need not be insured. I don't even care if the company match is insured. Hell, I'm even willing to pay higher capital gain taxes if I'm guaranteed to have my principal when I'm about to cash out my 401K.
We tout this plan as a retirement plan, a supposed "nest egg" and it has a zero safety net!.
No thanks, If I want my eggs scrambled, I will go to IHOP. Please leave my 401k nest egg alone!
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