Forex Automated Trading And The 401(k) System
Forex Automated Trading is creating curiosity. Some are starting to ask if they can use a system like an automated forex software robot system for their qualified accounts, e.g. 401(k) accounts.
Last Saturday the Wall Street Journal continued its evaluations of the 401(k) system with an article "Employers Begin Driving Your 401(k)." Fortune magazine over the summer ran a feature on the demise and low value of the 401(k) and even called for the program to be scrapped. They make the very point we have been making since earlier this year. Baby Boomers, Generation Xers. and even current retirees, need a better system to prepare for quality retirement.
The 401(k) system and other qualified account systems are here to stay. But where the money is saved is still up for grabs, even though there is a move for employers to take more and more control.
The current 401(k) system is not working and yet 74% of workers keep contributing. Now the move is for employers to have more control, and the move also is for a higher percentage of employees incomes to go into the 401(k) system. Does this make sense? Employees still will not really be aware, not because the information is not there, but because they generally simply accept what is given. The article indicates what we know if we are close to the people, that generally workers accept what is handed to them.
A whopping $3.5 Trillion dollars of 401(k) money is in the market through one form or another. To move money into an automated forex software robot system cannot be done by the companies because the system works differently.
The problem as we see it is that the 401(K) system is not creating retirement for the individual workers. It was not intended to. First, they can never save enough for quality retirement. Secondly, all the funds are related to the stock market in one form or another which is not performing enough, especially after fees, commissions and so on, and thirdly, once Baby Boomers are required to start withdrawing the $3.5 Trillion dollars, the market decline will be further impacted in a negative way.
We could go into detail here, but we have done so elsewhere and it takes a larger discussion than we have space for in a brief article.
But there is a plan emerging that has the potential to create a quality retirement through IRA's and 401k)'s. The individual worker needs to become aware and take action independently if they want to take control.
If you are like I was only a few years ago, you did not know what it meant to say something was a qualified plan. The terminology was not clear because we do not use it every day. A qualified account is a technical, financial term which describes a savings fund as a fund in partnership with the government. The government says you don't have to pay taxes on that money right now. You can postpone them until later. If you pull the money out before age 59 1/2, you'll pay a 10% penalty, in addition to your taxes. If you don't start pulling certain amounts out by the time you are 70 1/2, you'll also pay huge fines.
These plans are the IRS sections 401(k), the IRA, and Roth and the 403(b). 401(k) is the largest, $3.5 Trillion. Where is the money? By-in-large, in the stock market through mutual funds. Some in bonds. Some in specialized or individualized plans. But most in the easiest, the 401(k).
Since the mid 1970's when the plans were created, many amendments have been made to them, but they remain basically the same.
The plans came into law in the mid 1970's. Here's the catch. They were designed to encourage savings plans. Not retirement. They were never designed to create enough money for retirement. As pension plans began to disappear, as workers began to move around more from job to job and career to career, pension plans all but disappeared. The natural thing was for people to begin to think of their 401(k) as a pension plan, which is not how the 401(k) is set up at all.
We've sat across the table from many ordinary couples and we find that few have over $100k or $200k saved up in 401(k) plans. This is a mere pittance for help with retirement years.
Here's another catch. If they have more, they will be paying more in taxes once they begin to withdraw.
Here's the option: Knowing there is a penalty to withdraw funds before age 59 1/2, it is allowable in most cases to transfer money from the account into a self-regulated account. There is help in this process, and no penalty or taxes. A good forex automated trading system that does not try to over-reach will now make a modest 3% monthly, but that is far higher than the continual loss of money in the mutual fund system where the $3.5 Trillion sits now. Employers will be taking more control, and they may do a little better, but it is a trick to beat the index funds.
Not everyone will move their money, so the impact will be nil. But for those who investigate and move their 401(k) or other qualified plan into forex automated trading have the potential to create a quality retirement nest egg.
A good automated forex software robot system requires no learning, no trading skills, and performs far better than the traditional market programs. The S & P indicator was down 27% over the past decade. The outlook for the next is no better. The funds from workers going into 401(k) plans are not working. But here is an automated forex software robot system that should be carefully considered as there are people doing very well and moving to a quality retirement.
by: Terry Thomas
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