Why Is Teresa Ghilarducci Considered "The Most Dangerous Woman in America"
Teresa Ghilarducci is a 51 year old economist who directs the Schwartz Center for Economic Policy Analysis at the New School in New York.
Why was Ghilarducci--who sure looks like a nice person in her picture--labeled the most dangerous woman in America in a recent US News & World Report column?
The short answer is that she thinks 401k plans stink and she is not afraid to let the world know.
Ghilarducci is the author of a recent book titled: When I'm 64: The Plot Against Pensions and the Plan to Save Them. Ghilarducci uses the book to lay-out the case against the 401k plan and to advocate an alternative which would involve a retirement system run by the government rather than the private sector.
Among her criticisms are the following:
- 401ks are voluntary and not enough people actually participate.
- Levels of savings for those who do participate are completely inadequate.
- Mutual fund management fees are excessive and eat away at the savings of 401k participants.
- Not enough employers make matching contributions to 401ks.
- 401k plans are highly regressive. In other words, those who benefit most from the system and the tax advantages are higher income earners. Those at the lower end of the income spectrum benefit least.
These criticism are well founded and are not entirely novel. What has the industry and certain parts of the media up in arms is Ghilarducci's proposed alternative to the status quo.
Ghilarducci advocates mandatory contributions from employers and employees that would total 5% of income. The retirement program would be administered by the government, but the plan assets would remain private property of each employee. The program also calls for the government to guarantee a return of at least 3% over the rate of inflation.
Pretty interesting and provocative ideas that we'll continue to follow--Ghilarducci must be on to something to have received the strong reactions that have surfaced thus far.
Anonymous (not verified) wrote on Sat, 05/29/2010 - 06:12:
IT'S ABOUT TIME SOMEONE STARTS LOOKING OUT FOR THE WORKING MEN & WOMEN OF AMERICA, ALOT OF US ARE TRYING TO DO THE RIGHT THING WITH OUR SAVINGS, BUT IT SEEMS THAT WE JUST AREN'T GETTING ANYWHERE, TERESA GHILARDUCCI KEEP UP THE GOOD WORK, I WILL BE FOLLOWING YOU..THANKS.
William (not verified) wrote on Mon, 09/27/2010 - 16:37:
Please please please. Do you know what that would do to the very large Insurance Industry? And why does the government want to create all these insurance pools including Healthcare and retirment? So they can use the funds to furhter entitlement programs like this one and more. Stop the Spending!
Any Nanny Mouse (not verified) wrote on Thu, 01/06/2011 - 12:51:
I can't stand people who don't know how to set a budget for their lives. Hey, socialist pigs: keep your hands off my money. You need to spend less and save more. Americans need to learn the hard way that socialism will not save the country when the sense of entitlement is so high.
keith (not verified) wrote on Sat, 05/29/2010 - 06:15:
i submitted the last page
William (not verified) wrote on Mon, 09/27/2010 - 16:35:
I appreciate your candor and excitement over the possibility of getting a retirement plan from the government. After seizing all retirement assets privately worked for and earned. So, what if you make 50K for 20yrs you pay-in $2,500/yr or $50K. And I make $150K for 10yrs, I pay in $7,500/yr or $75K and $200K for 10 yrs anothee $10,000/yr or $100K, I would pay-in $300,000 in 20 yrs. Let me ask you, do you think we will get paid the same amount from the government if we are the same age and have the same life expectancies? Hmmmmmmmm. you'd outlive yours and I wouldnt, thereby taking rather than giving. Nice Ponzi Scheme dont you think? You see, we ran from tyranny and oppression to fen for ourselves, you and me included. The less they take from us, the better prepared you are to take care of yourself. THink first !!!
Anonymous (not verified) wrote on Tue, 10/05/2010 - 11:59:
Wow! The Govt. will force us to contribute to a "retirement plan" and the benevolently "redistribute" it to us as they see fit when we retire. Despite what her bogus claims are, the 401k is one of the most successful and important plans to help individuals save for retirement that we have ever had...far better the Govt. ponzi scheme, social security, which is going broke. The 401k is avaiable to all who work for a cmployee who provids one (and most do) regardless of income level. It is completely voluntary and individuals can contribute as they want or can afford. And, most can chose the type of investment. It's freedom of choice. What is most frightening is how many Americans are willing to give up even more of their economic freedom to government in the false name of security.
Anonymous (not verified) wrote on Sun, 10/17/2010 - 09:02:
While high income people may benefit the most from the tax advantages of 401ks I think we should remember that there are great benefits for lower income people as well under our current plan such as the Roth 401k and Roth IRA. For people in lower tax brackets they have the huge advantage of being able to save in account that will allow both their contributions and earnings to be withdrawn completely tax free.
cmm912 (not verified) wrote on Mon, 10/18/2010 - 09:33:
I am very sorry people, but America IS NOT A SOCIALIST COUNTRY!!! I WORK HARD FOR MY MONEY, AND UNLESS I CHOOSE TO GIVE IT AWAY, OBAMA WILL HAVE TO PRY IT FROM MY COLD, DEAD HANDS!!!! THIS IS WHAT DICTATORS DO - THEY DECIDE WHAT, AND HOW MUCH, YOU CAN HAVE, EVEN THOUGH YOU PAID FOR IT!!!! For all of you people who want to live under Socialism, there are plenty of countries you can MOVE TO (I will even buy your one-way ticket!), so STOP TRYING TO CHANGE AMERICA!!! I am a 53 year old woman, and I NEVER thought that I would some day, perhaps literally, be fighting against a tyrannical government in my own country!! But you can bet that I WILL, if necessary! And with each passing day, it looks more and more necessary.
Anonymous (not verified) wrote on Thu, 02/10/2011 - 15:46:
You probably work for one of the big corporations or banks that are stealing us blind. Corporate Welfare is the problem. Not socialism. Take a graduate economics course!
Anonymous (not verified) wrote on Sat, 03/19/2011 - 13:34:
You don't have to "take a graduate economics course" course to see that govt intervention "on our behalf" is a poison pill. You take graduate economics courses to brainwash yourself into thinking personal accountability is an obsolete notion and that corporations and banks are all evil, you elitist jackass.
cmm912 (not verified) wrote on Mon, 10/18/2010 - 09:36:
P.S., for those who pooh-pooh accusations of Socialism, Teresa Ghilarducci is an "on again-off again" member of the Democrat Socialist Party. Verifiable online.
Anonymous (not verified) wrote on Tue, 11/02/2010 - 04:38:
Another example of the slow erosion of our freedoms!
Anonymous (not verified) wrote on Tue, 11/02/2010 - 08:30:
I CAN NOT believe what I am reading in this article. I feel like I've just woken up to a communist country or a George Orwell novel. Why is it that every liberal's answer to any issue is a government take-over of the private system? The Feds can't even figure out how to deliver the mail without losing millions upon millions of dollars (or social security for that matter), yet I am to believe that government can do a better job with my 401(k) that I can??!! What a joke!!
Anonymous (not verified) wrote on Fri, 03/18/2011 - 07:09:
The very people who time and again prove beyond a doubt that they cannot manage money competently want to take over my retirement funds to "protect" me. How else can we attempt to wreck this wonderful country?