Skippy has an article about states freezing funds where cities keep their excess cash.
See, this is where I was headed when I pointed out that so many boomers with jobs are invested in 401(k)s. They are rather like the cities -- putting money someplace they think is "safe". Lots of companies only ask employees whether they want high, medium or low risk, and don't give them any say about where the money then goes. Where I used to work, you could pick.
But in either case, the majority of folks cannot remove their money without huge penalties. The tax bill on an income lump like that would also be a shocker. If they do it as loans and fail to make payments, it's penalties and taxes both as well. A lot of folks are going to be very upset. Wonder how those who favored the fish GWB was gonna toss to the market by f***in Social Security feel now. If he opens his mouth on the topic again, someone should have him checked for actual insanity. Right now the market is not the best place for retirement savings.
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You can make money in an individual retirement plan if your retirement date happens to coincide with a bull market, but you are betting your future on that.
For the entire Bush era market earnings have been flat, behind inflation. Switching to private funds only guarantees money for one group, brokers, because they make money no matter which way the market moves.
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