OT- 401(k)s Hit by Withdrawal Freezes

It would appear to me, from reading the article, that the reluctance of those funds to exchange their assets for money, is that their assets are recorded at inflated prices and they do not want to recognize additional losses.

i

In the mean time how do retirees meet thier financial needs for medications, food, shelter, property taxes, etc ? Whey should those people suffer to save the corporation ? Liquadate those companies and prosecute those who inflated thier worth, we used to call that kind of behavior fraud.

Best Regards Tom.

I agree.

i

The investments seem to be in non liquid assets like real estate and others. The fund rules/prospectus states that the fund can limit withdrawals if necessary. So do not direct your wrath at the fund.

The folks you want to go after are the HR types at the company with the

401(k). They are the ones that select the broker. They are the ones that get the fees from the broker. They are the ones that allow non liquid assets in the 401k. They are the ones that do not give proper advice to the employees.

As for the retirees that don't get their money, BTDT. I was at a company with an ESOP. Since this was also a non liquid asset, the rules allows deferral of payout for up to 5 years AND payment over 5 years. When I left there, the payout clock started in January the following year. Wait

5 full years after that. Then I got 20% of the money each April for the next 5 years. It was 10 years and 8 months from the time I left until the time I got all the money. It was only luck that the managers had not driven it into the ground over the 10 years so I got all the original value out but had no investment income from it all those years. In the same time period, the DOW more than doubled and a T bill investment would have been up around 50%.

I sure feel for the 68 year old lady but near retirement age, some of your money, maybe a lot of your money, should be in funds that are not that risky and easier to draw on.

The post was an eye opener though. I can't wait until the T. Rowe Price lady comes again to do the 401K talk at work.

Wes