Comments on: Overcoming 401(k) negativity http://www.hrbenefitsalert.com/overcoming-401k-negativity/ Daily dose of benefits news and know-how Sat, 18 Jun 2011 21:36:33 +0000 hourly 1 http://wordpress.org/?v=abc By: Gary http://www.hrbenefitsalert.com/overcoming-401k-negativity/comment-page-1/#comment-2097 Gary Sun, 25 Jan 2009 05:31:43 +0000 http://www.hrbenefitsalert.com/?p=359#comment-2097 One reason for all the losses is too many people are putting money into a 401K and not watching the earnings. I have fellow employees who have no idea how their money is invested. They just say "I dread seeing my next statement." Our plan has a stable fund that earns 4%. Why not put the money into that until things get better? I haven't lost anything from 401K investments. One reason for all the losses is too many people are putting money into a 401K and not watching the earnings. I have fellow employees who have no idea how their money is invested. They just say “I dread seeing my next statement.” Our plan has a stable fund that earns 4%. Why not put the money into that until things get better? I haven’t lost anything from 401K investments.

]]> By: kevin http://www.hrbenefitsalert.com/overcoming-401k-negativity/comment-page-1/#comment-1602 kevin Mon, 24 Nov 2008 17:36:02 +0000 http://www.hrbenefitsalert.com/?p=359#comment-1602 Wow, alot of comments. I am a CPA that also runs the HR department. I have been following the trends by actually reading newspapers like Investor's Business Daily which would cause many to gloss over (these rags are great to read late at night for insomniacs). I have found that most investors that actually have large money are being very conservative (bonds, money markets, contra-funds, etc.) until they see 1) who Obama is appointing for staff positions, and 2) what congress is planning to do. The bailouts that were so critically needed to save the banking industry wound up being mostly smoke and not fire. Banks just seemed to use this free money from our taxes to just buy other banks instead of lending it. The car bailout is next and I believe it will be handled just as poorly. HR managers hold on to your emotions and expect double digit unemployment in the next few months as congress causes a bigger mess. If this happens, deinflation is inevitable. Paycuts for everyone will be a necessisity to maintain going concerns as well as job sharing to keep your ritical employees. Read what Procter and Gamble did during the depression (The CEO took a 50% paycut). As far as politics, if CPA's and Engineers could get elected instead of lawyers and professors that look and sound good, I believe that this economy would have a soft landing and get back on its feet very quickly. Would it be amazing to actually get people in there that know what they are doing instead of professional lawyers and professors from theory land that never had to make a product or make a substantial payroll. But alas, I can only dream. Kevin Wow, alot of comments. I am a CPA that also runs the HR department. I have been following the trends by actually reading newspapers like Investor’s Business Daily which would cause many to gloss over (these rags are great to read late at night for insomniacs). I have found that most investors that actually have large money are being very conservative (bonds, money markets, contra-funds, etc.) until they see 1) who Obama is appointing for staff positions, and 2) what congress is planning to do.

The bailouts that were so critically needed to save the banking industry wound up being mostly smoke and not fire. Banks just seemed to use this free money from our taxes to just buy other banks instead of lending it. The car bailout is next and I believe it will be handled just as poorly.

HR managers hold on to your emotions and expect double digit unemployment in the next few months as congress causes a bigger mess. If this happens, deinflation is inevitable. Paycuts for everyone will be a necessisity to maintain going concerns as well as job sharing to keep your ritical employees. Read what Procter and Gamble did during the depression (The CEO took a 50% paycut).

As far as politics, if CPA’s and Engineers could get elected instead of lawyers and professors that look and sound good, I believe that this economy would have a soft landing and get back on its feet very quickly. Would it be amazing to actually get people in there that know what they are doing instead of professional lawyers and professors from theory land that never had to make a product or make a substantial payroll. But alas, I can only dream.

Kevin

]]> By: Shirley http://www.hrbenefitsalert.com/overcoming-401k-negativity/comment-page-1/#comment-1579 Shirley Sun, 23 Nov 2008 04:29:53 +0000 http://www.hrbenefitsalert.com/?p=359#comment-1579 Kathy, There is no magical solution to make people feel better about bad times. It is going to take a while to get things back to normal. It is going to also take a while before we find out just what will transpire when the new predident takes office. We are not taking this without seriousness because it is serious. The truth is that there really is nothing we can do about it until we really know what is going to happen. There is no sense getting all upset over something that may or may not take place. I am in the baby boomer era. I had hope to retire in about 5 years, now I am sure it will be longer. I, however, also know that worrying about it will not solve any problems and it will cause me stress and upset my thought process. Instead I have just decided to wait and see what happens and try to stay calm and have faith in our country and the system we have in place for our law makers. I have learned to know what I can change and what I cannot change. If I cannot change it I need to accept it. Whether we worry or not whatever is going to happen will happen and there is little we can do about it. I still will tell my employees to try and stay calm until they know what is really happening. Shirley Kathy,
There is no magical solution to make people feel better about bad times. It is going to take a while to get things back to normal. It is going to also take a while before we find out just what will transpire when the new predident takes office. We are not taking this without seriousness because it is serious. The truth is that there really is nothing we can do about it until we really know what is going to happen. There is no sense getting all upset over something that may or may not take place.

I am in the baby boomer era. I had hope to retire in about 5 years, now I am sure it will be longer. I, however, also know that worrying about it will not solve any problems and it will cause me stress and upset my thought process.

Instead I have just decided to wait and see what happens and try to stay calm and have faith in our country and the system we have in place for our law makers. I have learned to know what I can change and what I cannot change. If I cannot change it I need to accept it.

Whether we worry or not whatever is going to happen will happen and there is little we can do about it. I still will tell my employees to try and stay calm until they know what is really happening.

Shirley

]]> By: Vickie http://www.hrbenefitsalert.com/overcoming-401k-negativity/comment-page-1/#comment-1536 Vickie Fri, 21 Nov 2008 16:12:04 +0000 http://www.hrbenefitsalert.com/?p=359#comment-1536 I am a HR professional also, and the business that I work in the employees average age is 50 1/2 so the confusion and terror in my employees is HUGE because they are so close to retirement. What do I tell these employees, to just wait and stay calm. This is a great sentiment but it does not calm their fears, nor mine. All of the above people in this blog have some great notions (and they are just notions) no one is certain what will happen in the future but wouldn't it be nice to be able to calm the fears of our employees some how? And show them that they can count on someone at this time of terror. Does anyone have any more ideas on how to do this? I am a HR professional also, and the business that I work in the employees average age is 50 1/2 so the confusion and terror in my employees is HUGE because they are so close to retirement. What do I tell these employees, to just wait and stay calm. This is a great sentiment but it does not calm their fears, nor mine. All of the above people in this blog have some great notions (and they are just notions) no one is certain what will happen in the future but wouldn’t it be nice to be able to calm the fears of our employees some how? And show them that they can count on someone at this time of terror. Does anyone have any more ideas on how to do this?

]]> By: Holly http://www.hrbenefitsalert.com/overcoming-401k-negativity/comment-page-1/#comment-1535 Holly Fri, 21 Nov 2008 16:11:36 +0000 http://www.hrbenefitsalert.com/?p=359#comment-1535 Well stated; Shirley McAllister and Kathy. Well stated; Shirley McAllister and Kathy.

]]> By: Shirley McAllister http://www.hrbenefitsalert.com/overcoming-401k-negativity/comment-page-1/#comment-1534 Shirley McAllister Fri, 21 Nov 2008 16:07:44 +0000 http://www.hrbenefitsalert.com/?p=359#comment-1534 RB, I was also very suprised at what transpired, this is the first time I have participated in such a discussion, although we have them on our HR site all the time. I think one thing I will tell my employees is it is too soon to answer your questions because no new legislation has been presented for approval at this time. I will be actively seeking out information on this situation and when I find out anything new I will pass it on to you. My SHRM community is very good at keeping me informed of possible legislative changes and what they mean to us. I will do what I can to find out what is happening with the 401k and pensions and keep you informed. Shirley RB,

I was also very suprised at what transpired, this is the first time I have participated in such a discussion, although we have them on our HR site all the time.

I think one thing I will tell my employees is it is too soon to answer your questions because no new legislation has been presented for approval at this time. I will be actively seeking out information on this situation and when I find out anything new I will pass it on to you. My SHRM community is very good at keeping me informed of possible legislative changes and what they mean to us.

I will do what I can to find out what is happening with the 401k and pensions and keep you informed.

Shirley

]]> By: Carol http://www.hrbenefitsalert.com/overcoming-401k-negativity/comment-page-1/#comment-1531 Carol Fri, 21 Nov 2008 14:47:13 +0000 http://www.hrbenefitsalert.com/?p=359#comment-1531 Thank you Kathy....... Thank you Kathy…….

]]> By: R. B. http://www.hrbenefitsalert.com/overcoming-401k-negativity/comment-page-1/#comment-1530 R. B. Fri, 21 Nov 2008 14:46:35 +0000 http://www.hrbenefitsalert.com/?p=359#comment-1530 Thanks, Shirley, for taking the time to give those of us who asked for some ideas a few examples of what we can tell our employees. That's what I was hoping to hear...ideas on how to handle the situation. Though I am an HR / benefit professional, I'm not an economist, politician, expert, or a financial planner, etc. It's a very confusing time, it's frightening and it's difficult to know what to say. I would love to hear more thoughts about what to tell employees because I do get hit all the time about how the government is going to take over our 401(k) plans and it is causing people to stop participating. I fully understand their feelings because I don't want to lose what I've managed to save either, but I don't know enough about what is being proposed and what it might actually look like if it did go through to help anyone. I have been a little surprised at attacks and accusations and am personally hoping for more ideas. Thanks, Shirley, for taking the time to give those of us who asked for some ideas a few examples of what we can tell our employees. That’s what I was hoping to hear…ideas on how to handle the situation. Though I am an HR / benefit professional, I’m not an economist, politician, expert, or a financial planner, etc. It’s a very confusing time, it’s frightening and it’s difficult to know what to say. I would love to hear more thoughts about what to tell employees because I do get hit all the time about how the government is going to take over our 401(k) plans and it is causing people to stop participating. I fully understand their feelings because I don’t want to lose what I’ve managed to save either, but I don’t know enough about what is being proposed and what it might actually look like if it did go through to help anyone. I have been a little surprised at attacks and accusations and am personally hoping for more ideas.

]]> By: Kathy http://www.hrbenefitsalert.com/overcoming-401k-negativity/comment-page-1/#comment-1528 Kathy Fri, 21 Nov 2008 13:48:02 +0000 http://www.hrbenefitsalert.com/?p=359#comment-1528 I've sat here this morning and have read all of your statements on 401ks. Some good and some bad. But I have to tell you. Everyone needs to calm down. All of this didn't happen over night, so it's going to take time to fix the mistakes of all.... Bashing our president and or congress (past, present or future) isn't going to help any of us. We need to try to come up with answers to the problems at hand and not continue the beat each other up. I'm been HR for over 20 years and seen alot of different things happen and I can tell you that we need to have some patience. Things will work out. I’ve sat here this morning and have read all of your statements on 401ks. Some good and some bad. But I have to tell you. Everyone needs to calm down. All of this didn’t happen over night, so it’s going to take time to fix the mistakes of all….

Bashing our president and or congress (past, present or future) isn’t going to help any of us. We need to try to come up with answers to the problems at hand and not continue the beat each other up.

I’m been HR for over 20 years and seen alot of different things happen and I can tell you that we need to have some patience. Things will work out.

]]> By: Melissa http://www.hrbenefitsalert.com/overcoming-401k-negativity/comment-page-1/#comment-1511 Melissa Thu, 20 Nov 2008 22:58:14 +0000 http://www.hrbenefitsalert.com/?p=359#comment-1511 Here are two good articles regarding the subject: http://www.workforce.com/section/00/article/25/83/58.php http://online.wsj.com/article/SB122662401729126813.html Here are two good articles regarding the subject:

http://www.workforce.com/section/00/article/25/83/58.php
http://online.wsj.com/article/SB122662401729126813.html

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