January 16, 2008

Debt-junkie Americans now can suck the funds out of their 401k's with the swipe of a card. Oh, man, how stupid can people get?


OK, that's it. I give up. We're f*cked. Get ready for BenefitsPANIC. How stupid can people be? When people don't have enough money for retirement in a few years and they look for government bailouts, I hope you remember stories like these.

Thanks EM for the link. You ruined my day.

Just Put It on My 401(k) Debit Card - Borrowing against your nest egg is becoming as easy as stopping at an ATM.

A growing number of companies now offer employees the option of being issued a debit card that taps a 401(k) loan. The card, called ReservePlus, allows workers to withdraw funds from their 401(k)s.

The immediate concern for consumers is that impulse spending desires could trump their long-term savings needs.

Critics contend use of the cards risks depleting already skimpy retirement savings. "Big picture: it just takes us out of the context of a 401(k) loan being a loan of last resort," says Jean Setzfand AARP's Director of Financial Security. "Seeing what we see, with retirement savings not quite where we want to see it, we're just afraid that this is going to deplete it further."

48 comments:

happy homeowner in the stix said...

Dear sweet mother of God.

May there be a special place in hell reserved for the bastards who brought us this abomination.

eric in vegas said...

Jesus how hard is it to just stop buying shit you don't need?

Frank@Scottsdale-Sucks.com said...

Holy Crap!!!

I guess all 401k's in Scottsdale will now be wiped out. But at least the restaurant closures will slow down for a few more months.

That's just damn insane.

It's real simple, people: IF YOU CAN'T AFFORD TO PAY CASH FOR IT, YOU DON'T DESERVE TO HAVE IT.

Yesterday I saw an Obama bumper sticker on a car and got so disgusted I had to put on the Rush song "Something For Nothing" just to clear my head.

Anonymous said...

Why not just stop contrib'ing to the 401k?

Anonymous said...

It was just a matter of time since the housing ATM is tapped out. Do they realize it has to be paid back or else they will have to pay penalties and taxes on the withdrawals?

Anonymous said...

Rents Flatten As Empty Houses Enter Market

Homeowners who thought they could ride out low prices by renting their properties during the slump are in for a nasty surprise.
Rents in the hardest hit property markets are falling, too.

In a new report, CNNMoney used data from rental Web site Rentometer.com to analyze median rents in 10 metro areas. The study found rents rose just 0.5 percent in 2007, rising a slim $8 to $1,465 a month.

Historical data suggests rents tend to track along with historic inflation rates of 2 percent to 3 percent.

Foreclosures put more properties on the rental market faster, pressuring rents, Owen Johnson, president of the parent company of Rentometer, told CNNMoney.
Another problem is simply empty properties, bought to flip during the speculative rise in home values. Many were purchased while under construction and are now coming onto the housing market with no resident owners.

Atlanta and Houston rents fell the most, down 12.8 percent, to $884 and $779, respectively. Washington slid 11.8 percent, Miami 9 percent and Phoenix 7.3 percent.

In big urban metros, demand kept rents rising. Rents in New York rose the most, up 12.8 percent to hit $1,729. San Francisco and Boston also saw rent hikes.

Johnson expects the trends to hold up through 2008, with strong markets seeing rent increases and overbuilt areas slipping even more.

"Foreclosures have not worked their way through the system yet," he told CNNMoney.


HAHAHAHAH

Anonymous said...

John McCain probably set this up for his globalist masters. This is Amerikas 21st century economy the globalist rave about. Free trade, destroys American middle class. Their just is no more money left for Booooooosh and the globalists to steel. 401k plans are it. Lets see 10 doller a loaf bread, 6.00 doller gas, 1500.00 per month health insurence. Add 50 million illegals to drive down wages, suck taxpayer paid bennefits, outsorce the few jobs that have not already been outsorced presto we the Boooooooosh McShitstain 21 century American economy.

Anonymous said...

Like I said, bring back the debtors prisons. Hard labor for those who can't control their spending. Floggings for those who keep giving them credit.

Anonymous said...

Excuse me, isn't the money in a 401K
funds belonging to the owner, not
credit (per anonymous). There is a
penalty of course, and the money will
be gone in a heartbeat, but somebody
put a bug in the ear of someone to
free it up, perhaps buying time until
everything tanks...

I never believed in 401K's and always
refused them.I just don't trust the
thinking of unknowns to do their best by anyone but themselves, not
me.
Grandma pkk

Anonymous said...

Anonymous said...
John McCain probably set this up for his globalist masters. This is Amerikas 21st century economy the globalist rave about. Free trade, destroys American middle class. Their just is no more money left for Booooooosh and the globalists to steel. 401k plans are it. Lets see 10 doller a loaf bread, 6.00 doller gas, 1500.00 per month health insurence. Add 50 million illegals to drive down wages, suck taxpayer paid bennefits, outsorce the few jobs that have not already been outsorced presto we the Boooooooosh McShitstain 21 century American economy.

January 16, 2008 10:25 PM


My sister in law worked for the local school system as well as her husband, now both retired teachers, and they pay $1500 a month to keep their medical insurance from when they were working. They couldn't qualify for anything new at their age both having ongoing medical conditions.
They both had to go back to work to afford medical. So that part is real, right now.

Shakster said...

Desparation on the Cusp of Madness.
That's one way to get at those 401ks without stealing them.Those who don't spend their 401ks will lose them. Too sad.

Anonymous said...

Live by the Throttle,

DIE by the Throttle.



America is Dead.

Anonymous said...

It's nothing more than a loan against the funds in your 401K- these have been around for quite some time. No big deal. And, it's probably better than actually taking the money out because you don't get penalized and don't have to pay the taxes- (although you are paying back with taxed money).

Anonymous said...

Well since tapping the retirement fund is usually the last step before total insolvency we should be getting to the end game real soon.

BondsOfSteel said...

This can be a good thing... a backdoor way of funding your 401K... especially a ROTH 401K.

Loan yourself tax-sheltered money at prime+3%... and pay it back with taxiable money... and you'll have tax-sheltered * (prime+3%). It's a way of sheltering prime+3%.

Heck, I wish I could pay myself the same +30% rates credit card companies can leagally charge... I'd never have to pay taxes on investment income.

Anonymous said...

ReservePlus. They could have done better...

DesperationPlus
ImpulsePlus
PlasmaPlus
...

Malcolm said...

anonymous said...

>....Amerika...

Isn't it strange how you can read an entire person by the way they spell one word?? :)

Anonymous said...

This is why I wish I could opt out of Social Security. I know damn well that when my time comes to withdraw from it, the government will pass some nice piece of legislation saying "oh, well, you were a good saver so you don't need social security. These other poor people who didn't save enough will need to draw more than their allowable limit to live".

Free market? Sure it is.

Withdrawing from your 401k has become the norm though. How many people depleted it to pay for their overvalued homes? Remember the realtor pitch saying "your home is your 401k!". (Was that Kendra Todd by the way?)

But as Keith stated, we are screwed. America, get ready for a wave of expatriates leaving your borders. Those of us smart enough to save and weather the storms are not about to sit by and pay for the shleps who were morons.

thomas jefferson said...

Remember, the banks love you and want you to be rich and succeed. That means having access to your funds all the time. You're intelligent enough to make your own financial decisions.
...
Plus, they're handing out crack and it's free for the first month! Priceless.

Yoski said...

What happens IF you don't pay back the money you borrowed against your 401K?
This could be a quick way to suck all the equity out of your 401K and invest the money any way you like and have it out from being under government control.
Ya'l know what's coming in 20 years. There will be a 20% "surcharge" for all 401K withdrawles to fund the shortfall in social security. Better get your money out while you can.
Just my 2 cents

Anonymous said...

I have a 401K but I also don't trust the people that invest the money - the only people getting rich from them are the people collecting fees for managing them. I certainly don't expect to be able to retire on what I have in there. What's worse is that I occasionally get to see statements from a run at one of my accounts and I looked through a 3 inch stack and didn't see anyone in there with more than $45K - most people had considerably less than $10K. Imagine if Bush had been able to push through the privitization of Social Security - no wonder Wall Street was chomping at the bit - more money to manage with no guarantee of any return.

ZZwcck said...

Anybody checked their 401(k)'s lately? Mine's down 6% for the year and I expect to keep going down. When it hits a drop of 10% I'm taking out the max and getting one of those nice CD's from countrywide or maybe I'll loan money to college students at 45% even better I can pray on people without checking accounts and charge them 1000%. Now thats a decent return.

Oh, from what I read the 401(k) debit cards do not have to be repaid at a faster rate if you change employment. The repayment term is 5 years without an acceleration if you switch employers.

The one thing that really sucks about this is the rate you are paying. Prime + 2.9%???? I think my unsecured signature loan is better than that.

Marky Mark said...

Next bubble and bail-out 10 years from now...?

Marky Mark

Anonymous said...

I told you that American culture was rotten beyond repair. Here's yet another proof.


"6 Confessions of An Alamo Rental Car Agent":

http://tinyurl.com/2rgrgb

Anonymous said...

All the Republican "conservative" homedebtors in Arizona will wipe clean their 401(k)s and then turn to the government for bailouts and welfare. Or they will move to the most liberal state in the US, California, while still bashing liberals. Republicans are hypocrites and love socialism.

Gotta love those bankrupt people in Michigan who keep getting screwed year after year by the GOP but keep on voting for them. Amazing!

Anonymous said...

"It's real simple, people: IF YOU CAN'T AFFORD TO PAY CASH FOR IT, YOU DON'T DESERVE TO HAVE IT."

Reminds me of the SNL skit of "If you do not have the money then do not buy it"

Princess Mononoke said...

This is just simply DISGUSTING!

Anonymous said...

Do you think Lawrence Yun has one of those ATM cards?

doom said...

This is truley the fall of the great american empire.The debt trap has sunk to the lowest and last level.
These assholes have already shot their last load.When the Baby boomer crowd goes broke so does everyone else.

Anonymous said...

Ok, so let me get this straight....

I save for retirement, don't use it like an ATM and in 20 years I'll be paying higher taxes to bail out the retards that used their 401K up at Crate and Barrel??

Brilliant...

Malcolm said...

With all of the ways they come up with to suck the last $ out of people, it's like the country is being run by a bunch of "carny's"

Princess Mononoke said...

What we keep see developing, of coursed fueled by 'The Power's That Be' are far greater issues within society...

an addiction of a different sort! Everybody is hooked on spending and debt... That has become their fix, ergo void in spirit!

Princess Mononoke said...

Just ask yourselves, why do people take drugs in the first place???

To avoid REALITY!!!

Same is true with debt...

Princess Mononoke said...

Really, just how DEEP do 'The Power's That Be' intend on digging this fricken HOLE????

gale in GA said...

"Do they realize it has to be paid back or else they will have to pay penalties and taxes on the withdrawals?",

Sure, just like they're going to pay taxes due on RE short sales, and those stiff fines for lying on mortgage applications.

Get real - our estemed Congress is going to bail out all these fools. When they're 70 they'll only have three hots and a cot, but the shelter will undoubtedly have a big screen TV.

Eric Ogunbase said...

The bastards who will use this will be the same ones demanding increased taxes to cover the Government Sanctioned Bullshit...excuse me...Social Security and Medicare.

There is zero financial discipline in our country. But why should we be surprised? Our governments can't even run a budget in the black. How can the citizens be expected to?

Who wants to move to Ecuador with me?

Anonymous said...

Ecuador? A third world banana republic?

Princess Mononoke said...

I feel that the 'Power's That Be' KEEP dealing/distributing debt to the public, keeping them hooked for the sole purpose of control!

The public aka sheeple are truly enslaved by the 'Power's That Be'!

Anonymous said...

"May there be a special place in hell reserved for the bastards who brought us this abomination.

January 16, 2008 10:00 PM"


There is a place and they are in hell already. The place: America.

Home of the Free and the Brave
NO
Home of the crooked and cowardly.

Let the Revolution Begin. I want to get-it-on while physically still in my prime. I voluteer to be a Border Guard...

Anonymous said...

" Anonymous said...
Ecuador? A third world banana republic?

January 17, 2008 7:37 AM"

Excersize:
How do you describe America?

Ed said...

Feb 2, 2012
AP NEWS - Washington,DC

In an election year effort to stem the rising defaults on 401k loans, President Hillary Clinton announced a bold new initiative to avoid a crisis. President Clinton announced an $800B package that would target those borrowers who were victimized by their 401k plan administrator. Under the plan, anyone who borrowed more than $1000 between 2008 and 2012 will receive 90% of their loan back via a check from the Treasury.

The 4 Republicans left in the Senate didn't even bother putting up a fight and the bill passed 100-0, setting a record for fastest bill passing ever.

In other news President Clinton's poll numbers jumped 18% to 79% approval rate. This on the heals of her "Everyone gets $100,000 free money from the government as long as you keep voting Democrat" initiative" announced last week.

debtisslavery.blogspot.com

bank dick said...

" your borders. Those of us smart enough to save and weather the storms are not about to sit by and pay for the shleps who were morons."

Too late my friend, the legal ways of getting your money out are gone. Congress passed a law last year with a provision that allows the IRS to assess taxes on the unrealized gains in retirement accounts of people emigrating from the U.S.

Our ever-vigilant DoHS now has the authority to question and detain U.S. citizens leaving the country in small aircraft or boats. A bureaucrat sitting at a cheap desk somewhere in Arlington now will decide your fate.

ForWhomTheTollBuilds said...

God bless financial innovation...

Anonymous said...

"Ok, so let me get this straight....

I save for retirement, don't use it like an ATM and in 20 years I'll be paying higher taxes to bail out the retards that used their 401K up at Crate and Barrel??"

Uhm yea that's about it.

Anonymous said...

"Loan yourself tax-sheltered money at prime+3%... and pay it back with taxiable money... and you'll have tax-sheltered * (prime+3%). It's a way of sheltering prime+3%."

That may be the stupidest thing I have ever read.

Anonymous said...

Gotta love those bankrupt people in Michigan who keep getting screwed year after year by the GOP but keep on voting for them. Amazing!


Michigan has been a blue union state for decades, you ignorant retard.

Anonymous said...

So what happens if everyone decides to stop paying their debt?

Gabor said...

"So what happens if everyone decides to stop paying their debt?"

-- you are about to find out