Raiding the 401(k)

Wow, I found this shocking:

"Borrowing from retirement plans is surging.

At the end of last
year, 18% of workers had loans outstanding from their plans, up from
11% in 2006, according to a survey of 2,011 full-time employees
released in February by the Transamerica Center for Retirement Studies,
a nonprofit corporation funded by Aegon NV’s Transamerica Life
Insurance Co.

With home prices falling nationwide, the loans may be a
sign that cash-strapped consumers are raiding their nest eggs to stay
afloat, no longer able to tap their houses for cash and up against
their credit-card limits . . .

Last year, 52% of workers with annual incomes of $50,000 to $100,000
said they planned to rely primarily on 401(k) plans and IRAs to pay for
living expenses in retirement, up from 46% in 2006, according to the
Transamerica survey. The percentage counting on Social Security also
increased, to 19% from 13%, while those counting on a company-funded
pension plan dropped to 11% from 18%."

Sounds bullish to me . . .

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Source:
Raiding the 401(k) Nest Egg
JENNIFER LEVITZ
WSJ, May 5, 2008; Page R1
http://online.wsj.com/article/SB120994246231866045.html

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Roach_bloomberg

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Source:
Roach Sees Negative Growth in U.S. for Second Quarter
Shobhana Chandra
Bloomberg, April 30 2008
http://tinyurl.com/4s7vjn

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