Or just very confident? The Democrat Leadership has a plan to take away the tax advantage on 401-K plans and replace it with a mandatory 5% contribution to a new government plan. It would then pay $600 per year back at retirement, according to Workforce Management, a non-political trade publication. For the mathematically impaired, six hundred dollars is five per cent of twelve thousand dollars. So you will get out less than you pay in if you earn more than $12,001. A fifty thousand dollar income will be required to pay $2500 per year into the fund - to get $600 back at retirement.
To add insult to injury, You pay in over approximately a forty-five year working life and take it back out over whatever is left of your life. Forty-five working years times $600 is $27,000! Sounds good to someone earning $12,000 per year. But of course, he will actually be losing money. From 65, forty-five years is 110. You would have to collect until age 110 just to break even on the $12,000 income.
Sounds like a great deal to me ... NOT. I can't believe they telegraphed their intentions before the elections. I guess they have confidence that Democrat voters can't do math.