Workers steered to high-risk investing

[Forkboy]

Federal rule imposed just before market crash

WASHINGTON - Shortly before the first signs of the stock market collapse, the Bush administration made a crucial decision that has propelled an estimated one to two million workers into stock-heavy retirement funds.

Many of the funds in which workers were automatically enrolled dropped more than 25 percent last year, while a more conservative investment strategy rejected by the Bush administration would have resulted in a gain of 4.7 percent.

The administration's decisions came in response to a congressional mandate to encourage more workers to participate in company-sponsored retirement savings plans. The Bush administration came up with a rule that enabled businesses to automatically enroll their workers in tax-free 401(k) retirement plans.

If the workers failed to specify how they wanted their money invested, the company would be required by law to place their retirement money in investment funds that, for the most part, relied heavily on stocks. The administration specifically rejected calls for a more conservative investment option.

http://www.boston.com/news/nation/washington/articles/2009/04/05/workers_steered_to_high_risk_investing/

I'd say this was a Bush failure but I suspect this might be exactly what they wanted, so I bet they see it as a success.

[NNN0LHI]

1. They wanted to invest Social Security and Medicare in stocks too

We forget about that at our own peril.

Don

[Kip Humphrey]

2. Funny how Republicans forget what they voted for. Remember, Bush ran on the "ownership society",

bragging in 2004 how under his watch 2/3rds of Americans now owned their own home.

How soon some forget.

[EFerrari]

3. Has anyone counted the silverware yet? n/t

[tanyev]

4. "Thanks for all your money, chumps!" *smirk*