Automatic enrollment in 401k-type retirement-savings plans, along with automatic escalation of contributions, helps employees at all income levels save earlier, save more, and provides better investment options than plans without that mechanism.
Adequate retirement savings are crucial. Even if Social Security were fully funded, the program does not provide anywhere near the level of income necessary for a comfortable retirement. Most retirement planners recommend that a worker's retirement income equal between 70 percent and 80 percent of his or her pre-retirement income. For a median income worker, Social Security replaces approximately between 40 percent and 50 percent of a worker's average earnings over the five years prior to retirement. This leaves a median income worker to fund an amount equal to at least 30 percent of his or her current income from a combination of retirement savings, pension plans, and other investments.
Financing this amount of annual income for the rest of their lives requires workers to build substantial amounts of savings before they retire. Traditional retirement theory suggests that a worker can afford to annually withdraw an amount equal to only 4 percent plus the inflation rate from his or her retirement savings without running out of money. This means that a worker with $100,000 in retirement savings could safely withdraw only $250 per month plus inflation from an account equally invested in stocks and bonds. A new study suggests that even then the worker will still run out of money before he or she dies in about 15 percent of all cases.
If a worker chooses an annuity or similar instrument that guarantees regular payments until the end of his life, he can receive higher amounts, but such an annuity requires significant savings. A 70-year-old man can expect to pay $100,000 for an annuity income of roughly $780 a month ($9,360 annually). For a 60-year-old, monthly income drops to roughly $625 ($7,500 annually) in return for $100,000. Since most retirees will need several times that amount of income, they must start to save early and continue to save throughout their working lives or face the very real probability that retirement will be a time of financial hardship and stress.
A traditional 401k plan requires workers to make several key decisions before they can save the first cent for retirement. First, they must decide to join the 401k plan, then, how much to save, and finally, how to invest those savings. Workers rightly see those decisions as important ones, and recognize that making a wrong choice could damage their retirement outlook. As a result, they typically postpone the start of retirement savings for several years, and even then workers often save too little given the age at which they began, or make investment decisions that are unlikely to build a large enough nest egg by their retirement date. Information and training sessions are available, but often workers fail to take advantage of these resources or find that the information provided is too technical. The result is lower participation rates and retirement savings that are too small to provide adequate retirement security.
Automatic enrollment reverses the traditional way that people sign up for a 401k retirement plan by placing them in the plan, saving a set percentage of their income, and investing in a specific automatic investment choice unless the worker decides otherwise. The worker continues to have full control and can change the contribution amount and investment option, or even stop saving completely, at any time. Studies show that automatic enrollment especially helps the four groups of people most likely to undersave for retirement: women, younger workers, minorities, and lower-paid workers. Under automatic enrollment, participation for these groups rose from less than 20 percent to more than 80 percent.
While automatic enrollment enables a worker to start saving at an earlier age, it does not guarantee that he or she will save enough for a secure retirement. Many 401k plans automatically enroll workers at a contribution rate equal to 3 percent of income even when the company matches a higher level of savings. Employers believe that a low initial contribution encourages employees to remain in the 401k plan. While participants have the ability to increase the percentage that they save, most simply leave it at the initial level. While 3 percent of income is a good place to start saving, a worker needs to save more in order to guarantee a comfortable retirement. An individual who starts saving when he or she is young should be saving anywhere from 7 percent to 10 percent, while someone who starts saving later in life may have to save a much higher proportion of her income, or retire later.
Automatic escalation of contributions is a simple program that enables employees to gradually save a higher proportion of their income for retirement by increasing their contribution rates when they receive a raise. Under automatic escalation, when a worker receives an annual raise, part of it is used to increase his or her contribution by 1 percent of pay; the rest goes into the paycheck. Thus, if a worker received a 3 percent raise, his or her gross take home pay would go up by 2 percent, while the 401k contribution would climb by 1 percent.
The mechanism works because employees do not feel any loss of income. Instead, they experience a modest rise in living standards at the same time that their savings rate climbs. Over the years, their total 401k contribution rises to a level that can guarantee them retirement security. The worker has full authority to stop the gradual increase in contributions at any time, as well as having the ability to increase or decrease the rate or even to stop contributing entirely.
Basil Venitis wants to abolish State insurance. You should be free to save and invest your money as you judge best. There shouldn't be State Insurance to seize big part of your income every year and tell you it's for your own good, or someone else's. There should be therefore no funding problem. Whether you want to retire or keep working should be your decision. How much you save for the future should be up to you.
Of course, some people will plan poorly or just won't earn enough to retire on, but the government may not pretend that this is anyone else's fault or responsibility. Those who can't afford to retire must work when they are older, or rely on family or private charity. No one should get the government to coerce others to pay for his retirement.
Venitis notes that in Greece, the most corrupt on Earth, you could easily retire at forty. All you have to do is give a kickback of 3,000 euros to a certifying State physician, who will lie to the State Insurance Organization(IKA) that you are handicapped! Part of this kickback goes up to the general inspectors and examiners. Nobody cares, nobody gives a damn for all this fraud. There are many villages and towns with all inhabitants declared handicapped! IKA grabs half a Greek's salary, but gives very little in return. Graecokleptocrats churn IKA's funds in order to generate commissions and kickbacks!
The Greek government controls the pension funds, the nest eggs of unions, and the Greek Treasury. Venitis muses this is putting the wolf in charge of the chicken! Graecokleptocrats select those money managers and brokers who return part of their fees and commissions as kickbacks to them. This is heightened when large volumes of trades go through consistent law-breakers such as JPMorgan and Goldman Sachs who know how to churn the accounts and generate a lot of commissions and kickbacks.
Adequate retirement savings are crucial. Even if Social Security were fully funded, the program does not provide anywhere near the level of income necessary for a comfortable retirement. Most retirement planners recommend that a worker's retirement income equal between 70 percent and 80 percent of his or her pre-retirement income. For a median income worker, Social Security replaces approximately between 40 percent and 50 percent of a worker's average earnings over the five years prior to retirement. This leaves a median income worker to fund an amount equal to at least 30 percent of his or her current income from a combination of retirement savings, pension plans, and other investments.
Financing this amount of annual income for the rest of their lives requires workers to build substantial amounts of savings before they retire. Traditional retirement theory suggests that a worker can afford to annually withdraw an amount equal to only 4 percent plus the inflation rate from his or her retirement savings without running out of money. This means that a worker with $100,000 in retirement savings could safely withdraw only $250 per month plus inflation from an account equally invested in stocks and bonds. A new study suggests that even then the worker will still run out of money before he or she dies in about 15 percent of all cases.
If a worker chooses an annuity or similar instrument that guarantees regular payments until the end of his life, he can receive higher amounts, but such an annuity requires significant savings. A 70-year-old man can expect to pay $100,000 for an annuity income of roughly $780 a month ($9,360 annually). For a 60-year-old, monthly income drops to roughly $625 ($7,500 annually) in return for $100,000. Since most retirees will need several times that amount of income, they must start to save early and continue to save throughout their working lives or face the very real probability that retirement will be a time of financial hardship and stress.
A traditional 401k plan requires workers to make several key decisions before they can save the first cent for retirement. First, they must decide to join the 401k plan, then, how much to save, and finally, how to invest those savings. Workers rightly see those decisions as important ones, and recognize that making a wrong choice could damage their retirement outlook. As a result, they typically postpone the start of retirement savings for several years, and even then workers often save too little given the age at which they began, or make investment decisions that are unlikely to build a large enough nest egg by their retirement date. Information and training sessions are available, but often workers fail to take advantage of these resources or find that the information provided is too technical. The result is lower participation rates and retirement savings that are too small to provide adequate retirement security.
Automatic enrollment reverses the traditional way that people sign up for a 401k retirement plan by placing them in the plan, saving a set percentage of their income, and investing in a specific automatic investment choice unless the worker decides otherwise. The worker continues to have full control and can change the contribution amount and investment option, or even stop saving completely, at any time. Studies show that automatic enrollment especially helps the four groups of people most likely to undersave for retirement: women, younger workers, minorities, and lower-paid workers. Under automatic enrollment, participation for these groups rose from less than 20 percent to more than 80 percent.
While automatic enrollment enables a worker to start saving at an earlier age, it does not guarantee that he or she will save enough for a secure retirement. Many 401k plans automatically enroll workers at a contribution rate equal to 3 percent of income even when the company matches a higher level of savings. Employers believe that a low initial contribution encourages employees to remain in the 401k plan. While participants have the ability to increase the percentage that they save, most simply leave it at the initial level. While 3 percent of income is a good place to start saving, a worker needs to save more in order to guarantee a comfortable retirement. An individual who starts saving when he or she is young should be saving anywhere from 7 percent to 10 percent, while someone who starts saving later in life may have to save a much higher proportion of her income, or retire later.
Automatic escalation of contributions is a simple program that enables employees to gradually save a higher proportion of their income for retirement by increasing their contribution rates when they receive a raise. Under automatic escalation, when a worker receives an annual raise, part of it is used to increase his or her contribution by 1 percent of pay; the rest goes into the paycheck. Thus, if a worker received a 3 percent raise, his or her gross take home pay would go up by 2 percent, while the 401k contribution would climb by 1 percent.
The mechanism works because employees do not feel any loss of income. Instead, they experience a modest rise in living standards at the same time that their savings rate climbs. Over the years, their total 401k contribution rises to a level that can guarantee them retirement security. The worker has full authority to stop the gradual increase in contributions at any time, as well as having the ability to increase or decrease the rate or even to stop contributing entirely.
Basil Venitis wants to abolish State insurance. You should be free to save and invest your money as you judge best. There shouldn't be State Insurance to seize big part of your income every year and tell you it's for your own good, or someone else's. There should be therefore no funding problem. Whether you want to retire or keep working should be your decision. How much you save for the future should be up to you.
Of course, some people will plan poorly or just won't earn enough to retire on, but the government may not pretend that this is anyone else's fault or responsibility. Those who can't afford to retire must work when they are older, or rely on family or private charity. No one should get the government to coerce others to pay for his retirement.
Venitis notes that in Greece, the most corrupt on Earth, you could easily retire at forty. All you have to do is give a kickback of 3,000 euros to a certifying State physician, who will lie to the State Insurance Organization(IKA) that you are handicapped! Part of this kickback goes up to the general inspectors and examiners. Nobody cares, nobody gives a damn for all this fraud. There are many villages and towns with all inhabitants declared handicapped! IKA grabs half a Greek's salary, but gives very little in return. Graecokleptocrats churn IKA's funds in order to generate commissions and kickbacks!
The Greek government controls the pension funds, the nest eggs of unions, and the Greek Treasury. Venitis muses this is putting the wolf in charge of the chicken! Graecokleptocrats select those money managers and brokers who return part of their fees and commissions as kickbacks to them. This is heightened when large volumes of trades go through consistent law-breakers such as JPMorgan and Goldman Sachs who know how to churn the accounts and generate a lot of commissions and kickbacks.
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Ευρωπαίοι χωροφύλακες στην Ελλάδα για τις διαδηλώσεις!
ΑπάντησηΔιαγραφήH ειδική ευρωπαϊκή στρατιωτική δύναμη, EUROGENDFOR ( EUROpean GENDarmerie FORce) έρχεται σύντομα στην Ελλάδα για να κατευνάσει τις λαϊκές αναταραχές και τα φαινόμενα εξέγερσης που συνοδεύουν τη δυσαρέσκεια του κόσμου για τα σκληρά αντιλαϊκά μέτρα της κυβέρνησης.
Πρόκειται για ένα στρατό που έχουν στη διάθεσή τους τα κράτη-μέλη της Ε.Ε. και μπορούν να χρησιμοποιήσουν προκειμένου να φανεί ότι στα φαινόμενα καταστολής της εξεγέρσεων δεν αναμειγνύεται ο δικός τους στρατός, αλλά ευρωπαϊκές δυνάμεις άμεσης επέμβασης.
Σύμφωνα με τελευταίες πληροφορίες που εξασφάλισε το Newsbomb.gr, προς το παρόν έχει αναλάβει δράση στην Ελλάδα η ναυτική της δύναμη περιπολώντας τα σύνορά μας στην περιοχή του Αιγαίου. Δεν έχουν βρεθεί όμως ακόμα ο κατάλληλος χώρος, όπου θα στεγάζεται τόσο η ναυτική αποστολή που θα συντονίζει τις ενέργειες, όσο και ο εξοπλισμός της. Η Ευρωπαϊκή Δύναμη Χωροφυλακής αποτελείται από 5 κράτη μέλη της Ε.Ε. – Γαλλία, Ιταλία, Πορτογαλία, Ισπανία και Ρουμανία, ενώ το ηγετικό της Επιτελείο έχει τη βάση του στην πόλη Βιτσέντζα (Vincenza) της Ιταλίας.
Η είδηση για την αποστολή του μηχανισμού στην Ελλάδα αναρτήθηκε αρχικά, το Μάρτιο του 2010, από το γερμανικό εκδοτικό οίκο Kopp Verlag. Όπως σημειώνει ο Γερμανός αρθρογράφος, Udo Ulfkotte: «Την ώρα που οι Γερμανοί προτείνουν στους Έλληνες να ξυπνούν νωρίτερα και να δουλεύουν περισσότερο για να ξεπεράσουν την οικονομική κρίση, στους ελληνικούς δρόμους συσσωρεύεται η οργή. Και έτσι στις Βρυξέλλες αρχίζουν όλες οι προετοιμασίες της κινητοποιήσεως, για πρώτη φορά, ενός ειδικού σώματος της Ε.Ε. για την καταστολή των αναταραχών».
Ο ευρω-στρατός είναι εφοδιασμένος με αρμοδιότητες Μυστικών Υπηρεσιών και συνεργάζεται στενά με τους ευρωπαϊκούς στρατούς για την εγγύηση και εξασφάλιση «της ασφάλειας στις ευρωπαϊκές περιοχές όπου υπάρχουν κρίσιμες καταστάσεις».
«Για την στρατηγική κινητοποιήσεως αποφασίζει ένα πολεμικό συμβούλιο υπό μορφή υπουργικής επιτροπής, η οποία αποτελείται από τούς υπουργούς Αμύνης και Ασφαλείας των συμμετεχόντων ευρωπαϊκών κρατών», σημειώνει ο αρθρογράφος.
Μόλις το “υπουργικό επιτελείο κρίσεων” υποδείξει πού υπάρχει κρίση, το ειδικό σώμα μπορεί άμεσα να προχωρήσει στην καταπολέμηση αναταραχών, ανταρσιών και μεγάλων, πολιτικών διαδηλώσεων.
Είναι αξιοσημείωτο ότι το Ομοσπονδιακό Υπουργείο Αμύνης εκθείασε την EUROGENDFOR στην ιστοσελίδα του με τις εξής λέξεις: «Αστυνομία ή Στρατός; Μία Ευρωπαϊκή Μεραρχία υπόσχεται την λύση».
Όλο και περισσότερα κράτη-μέλη της Ε.Ε. εισέρχονται στη EUROGENDFOR, αν είναι πολλοί ακόμα αυτοί που αγνοούν την ύπαρξη και τη λειτουργία της.
Για του λόγου το αληθές σας παραθέτουμε και τη σχετική ιστοσελίδα όπου αναδημοσιεύετε ολόκληρο το γερμανικό κείμενο:
http://info.kopp-verlag.de/hintergruende/europa/kopp-exklusiv-geheime-vorbereitungen-fuer-den-ein.html
πηγή: http://www.newsbomb.gr/
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