Journal 2

The claim is that the 401(k) is not as effective as a retirement method as it is expected to be. Date is explained through forces beyond individual control, values of 401(k)’s have plummeted. People near or in retirement will not have the money they expected and in many cases won’t have the money they need. Even for people further away from retirement there is no guarantee that their 401(k)’s will recover. The conclusion is that because of this we need a new form of retirement plan or at least more options which protect investors from forces beyond their control. Since the 401(k) is not providing the retirement funds expected then new forms of retirement plans need to be considered. Grounds for the article are alerting people that we need to be taking a new look at retirement vehicles. As backing for the claim that owners of 401(k)’s are losing more than just value the writer points to several companies who have cut back or illuminated matching funds. He qualifies his conclusion by saying that instead of abandoning or tossing out 401(k)’s perhaps changes can be made to make them more effective. The author recognized that claims were made during the campaign that if pursued would help with this problem. But he points out that these conditions of rebuttal are primarily limited to low income workers and the concepts need to be expanded beyond that group to solve the problem.