Originally Posted by
PilotWombat
So, a question to all of you that don't like the MBCBP (I'm still undecided, and will likely remain so until something concrete comes out). Clearly the 401k isn't adequate, so what is your proposal? What other company-sponsered options exist that allow us to shelter our retirement contributions from taxes now that you would find acceptable?
Depending on your age and previous savings I would not agree that the 401k isn't adequate, but that is a larger discussion.
The problem with the MBCBP is that you have no individual control. You are lumped into a group plan with a conservative target growth. And on top of that there surely will be high fees to the administrator who probably will select expensive funds. Additionally, the plan is not optional. It's a defined benefit plan which is mandatory until the IRS says otherwise. We are supposed to trust that this will happen. Just wait until the details are out, it will be fine!
There really aren't other long term tax deferred options, and that is fine. You have to pay taxes on income at some point, your goal should be to even out your exposure. If you need more retirement savings after maxing you 401k, you're better off with a taxable investment account or real estate. The extremely wealthy in this country do exactly that, they invest in real estate/businesses/securities and pay capital gains taxes which relatively speaking are cheap.
Just give me my money. Then I can invest it where I want based on my risk tolerance and short/long term needs.