"Adoption of automatic enrollment in retirement plans when workers join a company, and a minimum of 6 percent of pay should be set for employees’ contribution"
They want to pick your pocket before it even gets there -- for your own good, of cour$e.
"Fidelity exec sounds alarm on retirement savings in US" by Beth Healy | Globe Staff, April 10, 2013
Fidelity Investments’ president of asset management, Ronald O’Hanley, issued a stern warning Wednesday before a gathering of the US Chamber of Commerce that Americans are not saving enough for retirement and are in danger of living their later years in poverty.
I've already accepted that there will be no retirement (or a forced retirement), and am resigned to poverty.
And if true, why is Social Security of all things being cut?
O’Hanley told attendees at the chamber’s capital markets summit that the country needs to “act now to avert the looming catastrophe America faces if we don’t get serious about addressing the inadequacy of our retirement savings system.”
That kind of talk is when I start reaching for my wallet.
Already, nearly four in 10 retiree households do not have enough income to cover their monthly expenses, according to the Boston mutual fund giant’s research. And well over half of Americans have less than $25,000 in total savings, not counting their homes or pension plans, O’Hanley said.
With $13 trillion in individual retirement accounts and workplace plans like a 401(k), there are still many people who are not saving at all, O’Hanley said.
I can't afford to.
Btw, how much is he making these days?
“I’m not sure what would be worse — millions of elderly unable to house and feed themselves or the intergenerational strife that surely would erupt if young people are forced to lower their standard of living to pay for our failure to act in a timely manner to avert this crisis.”
Whose failure?
Btw, both will be happening at the same time in the new age of austerity.
To address the problem, O’Hanley suggested that more companies offer workplace retirement plans to their workers. Currently, one-third of Americans have no retirement plan at work, O’Hanley said. He suggested lawmakers need to make this easier for employers.
First of all, we would need jobs, you know, the jobs that are being intentionally taken away from us. Secondly, this is just about your hog ass on some more loot for Fidelity.
He also said Americans, forced to be responsible for their own retirement investments, need more financial education: “In our schools, we teach children about sex and drugs but not about money.”
You won't catch me arguing that.
The fact is, our schools today are nothing but politically correct brainwashing centers. Their charge is indoctrinating and inculcating the youth with the myths of today and history. I know, because I witnessed it up close. It's not about education or developing critical thinkers. It's about creating mindless automatons.
Now the first thing they need to learn about is the Ponzi scheme of private central banking and the Federal Reserve.
The tax-deferral benefit of 401(k) plans is a big incentive and should not be removed as Congress looks for ways to raise revenue, O’Hanley urged.
He pressed for further adoption of automatic enrollment in retirement plans when workers join a company, and said a minimum of 6 percent of pay should be set for employees’ contribution. They could still opt out, he said, but experience at Fidelity and other firms has shown that employees tend to stick with their initial contribution level — which often is not enough.
Look, he $till wants more of your money to play with.
Employees should save 10 percent to 15 percent, O’Hanley said, including employer matches, if they are to work toward a goal of accumulating eight times their annual salary to live on in retirement....
What retirement?
--more--"
Maybe I should just give it on faith, huh?
"Lawsuit claims Fidelity misused funds" by Callum Borchers | Globe Staff, February 07, 2013
The Boston investment giant Fidelity Management and Research faces a lawsuit alleging it mishandled interest earned on clients’ retirement accounts, using some of the money to pay unauthorized fees to itself.
We call it STEALING!
A complaint seeking class-action status was filed Tuesday in US District Court in Boston but offered little insight into the scope of the alleged abuse. Gregory Y. Porter, an attorney for the plaintiffs, estimated Fidelity could be liable for as much as $2 billion in damages, based on a similar case in Missouri that Fidelity lost last year.
The interest in question was earned on money Fidelity deposited in temporary accounts before participants in 401(k) plans had decided how to invest it long term. Interest earned from such temporary accounts is known as “float income.”
The suit alleges Fidelity used float income to pay itself fees beyond the amounts to which it was entitled for managing 401(k) assets.
And now they want you automatically invested.
Fidelity also deposited float income into mutual funds, spreading the money among all fund investors, instead of crediting the interest to the individual 401(k) plans that earned the money, the suit alleges.
Related: Fed Funnels Made Millions Off Mutual Fund Bailout
How much did Fidelity get?
“On an individual basis, we’re talking about very small amounts, but that’s what class action is for: to right many small wrongs,” Porter said.
It adds up.
Jennifer Engle, a Fidelity spokeswoman, noted the company is appealing the decision in Missouri and said “we believe that the practices described in this lawsuit are consistent with the law and fair to all parties.”
--more--"
Also see: Fidelity Been Cheating On Massachusetts
What a bunch of f***ers!
Some would say stole.
Fidelity income drops 29 percent
Fidelity shines in growth stock rally
Yup, the good old days are back!
Also see: Sunday Globe Special: Retirement Bust For Baby Boomers
You know, I'm just no longer bonding with my Boston Globe.
