401(k) Reforms?

This is scary. At first blush this sounds like a massive “everyone will be invested in one big mutual fund” Ponzi scheme extravaganza. Here is more from the Department of Labor. An excerpt that caught my eye:

“Mutual funds pool and invest the money of many people. Each investor owns shares in the mutual fund that represent a part of the mutual fund’s holdings. The portfolio of securities held by a mutual fund is managed by a professional investment adviser following a specific investment policy.”

Isn’t that special…a government bureaucrat educating us all.

My questions:

1. What does “professional” mean exactly?
2. What does “follow” mean exactly?
2. What does “specific investment policy” mean exactly?

9 thoughts on “401(k) Reforms?

  1. The government(s) mismanaged taxpayer money. Now that the consequences are upon us, they want the taxpayer to foot the bill for their mismanagment.
    When the coffers were full,they said there was not enough money. Now that there really is “not enough money”, they want to take everything that is left.
    Well, as far as I’m concerned, they can GO TO HELL.

  2. Not to sound like the proverbial wingnut, but doesn’t this speak to the issue of central banking, fiat currency, etc.?
    To some extent, haven’t we all allowed ourselves to act, in relation to gov’t controls & money-manipulation, like the buy-&-hold herd have acted in relation to mutual funds?
    Myself, I was naive enough to assume that the U.S. Fed was wise, statesmanlike & competent, even if politicians weren’t.
    And that, of course, gold was superstitious nonsense, legal tender laws were necessary, etc.
    And that endless (incremental) inflation was good.
    And that modern gov’ts were not at risk for sovereign default.
    And that their internal, off-books debt was unimportant.
    Etc., etc.
    Such innocence…

  3. The government is also making Treasury bonds available to retirement account holders. It is purely wrong for them to try to unload their bonds on the American people while they are using the worst fiscal discipline in the history in the world.

  4. The government is also making Treasury bonds available to retirement account holders. It is purely wrong for them to try to unload their bonds on the American people while try continue to print more money and issue more debt.

  5. They will do what Argentina did – steal your 401K’s and IRA’s and buy Bernanke Bonds so he can stop counterfeiting. 2-7 trillion, ready to be swindled and stashed in the next major bubble.

  6. Learn to invest on your own or pay the consequences of allowing others to do it for you. If you think investment advisors are bad wait until the government is doing it for you.

    Mutual funds are dead… learn to trade ETF’s.

  7. The government …that is, the average citizen…can’t seem to figure out that the meltdown didn’t occur in the flower business, or the warehouse business. No, it happened in the financial business, the most heavily regulated business on the planet!!

    The government’s solution? More regulation.

    Here’s a suggestion…if you want Wall Street to quit taking unreasonable risks, keep your hands off and quit backing them up when they fail. I’d say the first finance company to do an Enron or World MCI face plant with the loser CEO paraded across the news as a big giant dick will be all the “regulation” needed to get the response needed to get Wall Street to act responsibly. It would be short-term pain, but long-term gain for the country.

    Right now, we’re taking money from the smart guys and giving it to the morons. And the government is the ultimate moron when it comes to money. Great move!

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