The Great 401 (K) Hoax: Why Your Family's Financial Security is at Risk, and What You Can Do about It by William Wolman - 9780738208527 - Compare Prices on New & Used Textbooks, Cheap Textbooks

The American public was hoodwinked: 401(k)s were established to satisfy corporations, not the interests of working Americans. Portrayed as a perpetual wealth machine, the 401(k) was meant to satisfy the needs of every employee. Yet, it was an impossible promise to fulfill: It was the great 401(k) hoax. According to William Wolman and Anne Colamosca, this was the latest act in the gradual erosion of the nation's retirement system. Drawing from reams of historical and contemporary data as well as economic, social, and political trends, they reveal the system's troubled 100year history. Beyond exposing the hoax, the authors urge everyone to take charge of their investment portfolio and recommend strategies for beating Wall Street at its own game. Timely and incisive, The Great 401(k) Hoax is guaranteed to inspire debate and action-from the water cooler to the boardroom to the voting booth.

		The Great 401 (K) Hoax: Why Your Family's Financial Security is at Risk, and What You Can Do about It by William Wolman, Anne Colamosca ISBN-10: 9780738208527 ISBN-10: 0-7382-0852-3 ISBN-13: 9780738208527 ISBN-13: 978-0-7382-0852-7 Paperback 2003-04 Basic Books Find Lowest Price
Editorials

Product Description The American public was hoodwinked: 401(k)s were established to satisfy corporations, not the interests of working Americans. Portrayed as a perpetual wealth machine, the 401(k) was meant to satisfy the needs of every employee. Yet, it was an impossible promise to fulfill: It was the great 401(k) hoax. According to William Wolman and Anne Colamosca, this was the latest act in the gradual erosion of the nation's retirement system. Drawing from reams of historical and contemporary data as well as economic, social, and political trends, they reveal the system's troubled 100year history. Beyond exposing the hoax, the authors urge everyone to take charge of their investment portfolio and recommend strategies for beating Wall Street at its own game. Timely and incisive, The Great 401(k) Hoax is guaranteed to inspire debate and action-from the water cooler to the boardroom to the voting booth.
Reviews

Book is mostly right The 401K was a substitute for funded pensions which employers hated to pay to an ever aging population. We are now at the mercy of the free...Not so free market which has proven over time to be manipulated by the power brokers. I would suggest you invest in your 401K only if your employer matches and allows it to be self directed. There is no one out there more interested in taking care of your own future than yourself. Buy the book and others like it if only to educate yourself.
Understanding the Myths and Realities of 401-K Plans I read and was enlightened by the hardcover edition of Wolman and Colamosca's book when it was first published and am looking forward to reading the updates in the recently released paperback edition. Companies encouraged baby boomers to join the 401-K bandwagon. Now, as we begin to enter retirement years, our large demographic may provide a magnified study of the impact of such plans. Perhaps this will benefit younger members of the workforce, especially if the Bush Administration re-visits its efforts to foster worker-managed-retirement-investment programs.
I'll struggle to review, like the writers struggled to conclude The Great 401(k) Hoax is real!!!! Or at least that's what the writers of this book, surpisingly former Business Week contributers, will have you believe. ("Surprisingly" because of the lack of free-markets bent.) The conclusion is that our entire futures are based around a flawed and imperfect system of investing that has led us all astray and has jeopardized our future. This is ten to fifteen pages of The Great 401(k) Hoax. The rest of the book provides historical comparisons to the post bubble/9-11 period that "prove" we are in for stagnant returns in the stock market from now (the now being mid 2002 when the book was written) to...well, who knows when. Quite honestly, the historical connection is incredibly signficant as history may not be indicitive of future returns (as all mutual funds are required to tell you), but history can be darn close. This part of the book is very interesting and important. Also included is a analytical perspective on the destruction of the pension plan which is fine and good, but intuitive. What lacks is the clear cut conclusion of "what do we do?" Part of the title of this book is "What You Can Do About It." After reading the entire book, I'm still not entirely clear on what I can do about it. The writers offer investment suggestions, but in the end still seem a little inconclusive on whether they are viable options for a safe retirement. In the afterward, written a year or so after the original release, many of the writers' original investment suggestions are (obviously) rescinded, such as bonds which had 3 years of strong growth following the continuing decline of stocks. Ultimately, one investment option is highly recommended, both in the book and the afterward. I won't ruin the surprise for readers, but their TIPs are anti-climactic.
If You Participate in a 401(k), You'd Better Read This If a person wants to invest in the stock market or in other forms of investments (bonds, govt. securities), and the primary purpose behind these investments is for retirement, this is a book that one should read. As with so many things that the government does, often in cahoots with businesses, this book shows how the 401(k), a supposed benefit to employees, is anything but. The `average' employee is getting ripped off in his/her 401(k) plan. The primary benefits of 401(k)'s are to the businesses, themselves, and to the top 10% of households based on wealth. Simply put, the rich get richer at the expense of the middle and lower class. If you have a 401(k) or are thinking of participating in one, read this book first and then decide if or how you want to participate. Rating: 4.0.
So Many "A-ha" Moments I'd been feeling suspicious and uncomfortable for years with regards to Stock Market investing, Mutual funds and 401K's and pension plans in particular. I never really knew why aside from this feeling that "The Street" was always trying to pull a fast one on us little guys. I applaud and thank the authors for this book and the effort to educate the masses. The patience and wisdom with which they explain the "fallacy of composition" as the basic principal behind the danger of investing in the stock market and especially a 401K for one's retirement is the best and most important element of the book. I'm feeling as if I've just been pulled from a burning building. This book also reveals the many advantages corporations have over wage earners and the individual investors. Reading this book will arm the average American with the knowledge needed to prevent costly investment mistakes - like complacency and too much trust in our corporate employers and wall street gurus.