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Mandatory pension funds: What are your thoughts?
Mandatory pension funds: What are your thoughts?
Started by Laura Reed27 · · 👁 16 views · 349 replies
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#142 ·
wiredotter16 said:It looks like we’re just playing word games now. When I mentioned a bank official, I was specifically referring to a loan officer. This whole back-and-forth only happened because I was building on that question miST posted back on December 12th.
"Conditioning" feels like such a harsh, heavy-handed word... as if they’re just walking up and forcing it on you. In reality, they execute it much more subtly than that.
Could someone please tell me which 401(k) fund you’re currently enrolled in? I’d love to offer some recommendations, as I actually have some firsthand information on this. Our specific fund delivered an XY return this past year, and I genuinely suggest you give it some serious thought. Even a tiny 1% difference in annual returns might seem negligible now, but over a 30-year horizon, that spread translates into a massive difference in interest—we're talking about potentially doubling your retirement nest egg.
And what exactly is the client supposed to say? Let’s be real: most of them don't have the slightest clue which specific 401(k) fund they’re even enrolled in, let alone how the entire retirement system actually functions.
Do you seriously think people aren't worried about their retirement savings until someone asks if they want to switch to a specific investment firm? 🤷
And for the last time, I'm telling you this from direct experience: not one single loan officer at my branch has EVER mentioned an investment fund or the Democratic Party in relation to a loan. And don't forget, there are tons of tellers and clerks at banks who just handle loan payments and stuff—they don't deal with loans or terms at all. That’s what the actual loan officers are for. According to your logic, those guys would be out of a job... ☕
#143 ·
ironsurfer10 said:SEC: For 2007, the 401(k) fund benchmark return was 6.5209%
The S&P 500, which tracks the benchmark returns for four mandatory 401(k) funds, rose by 6.81% last year
For 2007, the benchmark return for mandatory 401(k) funds in America stands at 6.5209%, while the guaranteed return is 0.5209%.%4 Since the annual growth rates for all 401(k) funds exceeded the guaranteed return level, no fund will be required to make up any difference to meet that guarantee, according to the SEC (SEC).
Well, that covers the security of the funds. I really hope we don't have to revisit this particular subject again...🤷
According to SEC data for 2007, the value of the S&P 500—which reflects the movement of benchmark returns for the four mandatory 401(k) funds—increased by 6.81% over the last year. Specifically, the funds with returns higher than the average were the Bank of America/State Farm and Wells Fargo funds (7.66% and 6.9% respectively), while AZ (6.38%) and the JPMorgan Chase blue fund (6.05%) fell below the average.
I’d like the colleague who was speaking up about AZ on this thread to take note of these lines...
SEC data also indicates that the average annual return from the inception of these 401(k) funds—from April 2002 through the end of 2007—was 7.6%. At that level, the highest return, at 8.11%, was recorded by the JPMorgan Chase blue fund, followed by Bank of America/State Farm (7.88%), Wells Fargo (7.85%), and the AZ 401(k) fund (7.12%). [/I]
There, I think I've found everything I could. I hope everyone is happy and satisfied!
If I recall correctly, I was just citing the returns on those voluntary funds..........
#144 ·
Ronald Allen said:Do you seriously think people aren't worried about their retirement savings until someone asks if they want to switch to a specific investment firm? 🤷
And for the last time, I'm telling you this from direct experience: not one single loan officer at my branch has EVER mentioned an investment fund or the Democratic Party in relation to a loan. And don't forget, there are tons of tellers and clerks at banks who just handle loan payments and stuff—they don't deal with loans or terms at all. That’s what the actual loan officers are for. According to your logic, those guys would be out of a job... ☕
You’re absolutely right about that. Honestly, it feels like some people are just completely out of the loop on this.
Ronald Allen said:Do you seriously think people aren't worried about their retirement savings until someone asks if they want to switch to a specific investment firm? 🤷
And for the last time, I'm telling you this from direct experience: not one single loan officer at my branch has EVER mentioned an investment fund or the Democratic Party in relation to a loan. And don't forget, there are tons of tellers and clerks at banks who just handle loan payments and stuff—they don't deal with loans or terms at all. That’s what the actual loan officers are for. According to your logic, those guys would be out of a job... ☕
Wait, I’m a little lost here. Who exactly are you trying to defend? The loan officers? And shouldn't they be called credit analysts or something? Besides, you're acting like bank tellers are some kind of speed demons. Could you walk me through your logic a bit more clearly?😵🍿
#145 ·
Mark Sullivan62 said:If I recall correctly, I was just citing the returns on those voluntary funds..........
No, I wasn't talking to you... I meant the guy whose username starts with an L... I can't quite remember his exact handle...😵
#146 ·
Mark Sullivan62 said:If I recall correctly, I was just citing the returns on those voluntary funds..........
And hey, Edgar, isn't this thread supposed to be about MANDATORY pension funds? Seriously, man...🙂
#148 ·
Mark Sullivan62 said:So you’re actually gonna try and throw a red card at me for going off-topic, huh? 😁
Honestly, I'd rather 🙈
#150 ·
Mark Sullivan62 said:I’m really not that bad-looking 😛
I didn't mean a cardboard box, that's not what I meant 😉
little blueberry 😁
#151 ·
Alright, Ronald Allen, I see you’ve decided to get defensive about your bank and how things operate over there. To be clear, I haven't mentioned your specific employer once in my story, nor do I have any idea where you actually work. My point was centered on a very specific scenario. You're trying to beat me on the grounds that your bank lacks certain standards, but even if they did, that misses the mark entirely. I was recounting an actual, existing situation, and I don't see why you feel the need to make this a personal vendetta against your workplace.
On another note, I am perfectly capable of distinguishing between a loan officer, a private wealth manager, and a teller.
When I used the term "clerk," I wasn't attempting to belittle anyone or diminish their role. My apologies for not using the specific terminology required for you to grasp the core of my argument.
The crux of the matter was this: all banking staff at a particular institution are pressured to hit certain targets. This includes a quota for enrolling a specific number of people into retirement savings plans. If they hit their overall performance metrics, they might see some negligible bump in their paycheck.
I trust that clears things up.
Best,
On another note, I am perfectly capable of distinguishing between a loan officer, a private wealth manager, and a teller.
When I used the term "clerk," I wasn't attempting to belittle anyone or diminish their role. My apologies for not using the specific terminology required for you to grasp the core of my argument.
The crux of the matter was this: all banking staff at a particular institution are pressured to hit certain targets. This includes a quota for enrolling a specific number of people into retirement savings plans. If they hit their overall performance metrics, they might see some negligible bump in their paycheck.
I trust that clears things up.
Best,
#152 ·
Around here, you’ve got credit advisors, personal bankers, wire transfer folks, and tellers. The credit guys don't see any connection between the IMF or FEMA and loans—not even remotely. Meanwhile, the tellers get this "assignment" throughout the year to try and "sell" IMF or FEMA products to a specific number of people just because the bank offers them. But it's not like it's a requirement for anything! 👋
And yeah, I guess you could call the tellers the "grunts" since they end up doing all the heavy lifting and the worst jobs...
And yeah, I guess you could call the tellers the "grunts" since they end up doing all the heavy lifting and the worst jobs...
#153 ·
Ronald Allen said:Around here, you’ve got credit advisors, personal bankers, wire transfer folks, and tellers. The credit guys don't see any connection between the IMF or FEMA and loans—not even remotely. Meanwhile, the tellers get this "assignment" throughout the year to try and "sell" IMF or FEMA products to a specific number of people just because the bank offers them. But it's not like it's a requirement for anything! 👋
And yeah, I guess you could call the tellers the "grunts" since they end up doing all the heavy lifting and the worst jobs...
Aha... well, in that case, I might have to disagree with you there. From what I've gathered through some pretty reliable sources, those loan officers actually *do* push OMF on people quite a bit.
#154 ·
Look, I wasn't even trying to insult you or anything, and sorry if I made it sound like I was only talking about my own Chase account, but you kind of generalized the whole thing. I just think there should be a distinction made between different banks, you know? Like, maybe name a specific one. Because the way you're putting it makes it seem like every single bank is exactly the same, which totally misses the point that people actually choose where they do their business for a reason.
And yeah, sure, we have certain regulations, but they don't hit revenue quite the way you think they do. That was just the part I wanted to highlight... 😉
And yeah, sure, we have certain regulations, but they don't hit revenue quite the way you think they do. That was just the part I wanted to highlight... 😉
#155 ·
Look, this isn't some hypothetical scenario; it’s my actual life experience, so I know exactly what I'm talking about. Even ironsurfer10 pointed out that credit officers are heavily pushing OMF... Since I don't work in the banking sector, I can't give you a granular, step-by-step breakdown of how they pull extra capital out of thin air, but I think everyone here already gets the gist of what's happening.
Just get the job done, hit your targets, and the money will follow.
Just get the job done, hit your targets, and the money will follow.
#156 ·
wiredotter16 said:Look, this isn't some hypothetical scenario; it’s my actual life experience, so I know exactly what I'm talking about. Even ironsurfer10 pointed out that credit officers are heavily pushing OMF... Since I don't work in the banking sector, I can't give you a granular, step-by-step breakdown of how they pull extra capital out of thin air, but I think everyone here already gets the gist of what's happening.
Just get the job done, hit your targets, and the money will follow.
Look, whether you’re an employee at a big bank like Chase or Wells Fargo or not is completely irrelevant here. Honestly, if you aren't on the inside, I don't see how you can justify the way certain bank tellers go about extorting people during the loan approval process. It happens all the time—people are desperate, they’re panicking because they need money right now, and they end up agreeing to whatever predatory terms are shoved in their faces just to survive.
And frankly, for the sake of this discussion, which specific teller is doing what is totally beside the point.
#157 ·
Not trying to start a whole new thread here... just wondering if there's any way to pull out money from a mandatory pension fund before retirement hits? Say someone worked for maybe two years, then hit a gap where they aren't working for the next four or five. Is there a path to access those funds the employer was contributing while they were on the job? Just using that as an example to get a baseline answer. If anyone knows, maybe walk me through it—I might have other scenarios later. Thanks.
#158 ·
I’ve got a bad feeling about this one... seriously, can you even touch your Social Security benefits before you actually hit retirement age?
#159 ·
Nicholas Murphy70 said:Not trying to start a whole new thread here... just wondering if there's any way to pull out money from a mandatory pension fund before retirement hits? Say someone worked for maybe two years, then hit a gap where they aren't working for the next four or five. Is there a path to access those funds the employer was contributing while they were on the job? Just using that as an example to get a baseline answer. If anyone knows, maybe walk me through it—I might have other scenarios later. Thanks.
No. There isn't any legal framework that would allow those funds to be paid out early.
Good grief... if you only knew how many people ask me this every single day! 😍
#160 ·
ironsurfer10 said:No. There isn't any legal framework that would allow those funds to be paid out early.
Good grief... if you only knew how many people ask me this every single day! 😍
...I just used that as an example because someone I know asked about it—specifically what happens if they move abroad for work and don't plan on coming back. So, does that money just stay with the government... or the bank?😕
Of course I'm not surprised they're "non-refundable." The government has to make sure they recoup their losses, running calculations every year to cover current Social Security obligations while making sure there's a slice left for themselves. But honestly, it feels pointless. It’s someone else's hard-earned money, and in these scenarios, they just lose it. Basically, anyone who doesn't make it to retirement age ends up empty-handed.🙄
Thanks for the answer.
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