I'm hearing a bill was proposed and Biden veto'ed it saying 401k's need to be tied to "Green" Investments?
Why don't we just stand around the burn barrel and feed it $20.00's ?
I'm hearing a bill was proposed and Biden veto'ed it saying 401k's need to be tied to "Green" Investments?
Why don't we just stand around the burn barrel and feed it $20.00's ?
My basic understanding of the situation is that .gov wants to hobble your potential returns by forcing your plan's custodian to tie their decisions to ESG scores.
TBH, I haven't been paying too much attention, though. I rolled my 401(k)s to an IRA and now I get to be the one that decides what shitty investments to make and how much money to lose... ;-) I am interested in the full story, though, so hopefully one of our investment professionals will chime in.
And yeah, give it time...We'll be burning $20's before too much longer. That isn't very ESG, though, but I'm sure we'll come up with something.
Good explanation here:
https://www.foxnews.com/politics/man...nomic-security
It's absolutely nuts. The leftists are in full control of, not only our cognitively impaired leader, but our 401k plans as well
From what I understand, it ALLOWS financial people to use ESG as criteria for investments. You don’t have to, yet. And that may come more from the SEC saying that public companies must use ESG criteria when running their businesses.
So for now, find out what your fund managers are basing their decisions on. Where you are screwed is if you have a retirement plan where you don’t get to pick your plans. I think the unions will use this to push money to silly leftist companies- and when those investments go tits up, get the public to bail them out.
The Second Amendment ACKNOWLEDGES our right to own and bear arms that are in common use that can be used for lawful purposes. The arms can be restricted ONLY if subject to historical analogue from the founding era or is dangerous (unsafe) AND unusual.
It's that simple.
In a nutshell, fiduciaries are currently required by law to act in your best financial interest. Biden has put forth a rule that fiduciaries can make decisions giving woke, environmental and social justice factors equal weight to your financial interests.
So, stock X is a better financial investment but they are "icky". Stock Y may not be that smart financially but they are green BLM supporters who only hire trans, organic, free-range chipmunks. So seeing as how they are "equal" on the balance sheet we are gonna invest your retirement savings in stock Y.
This guy is English and he knows his stuff.
He's got a series of about 10 videos about this now and people in the know are using his videos to explain to normies wtf is going on
https://youtu.be/tmCiQMwtO0c
I was being a bit over the top in my example. It doesn't force anyone to invest in ESG but it does begin to justify making bad financial choices in order to support the "proper way".
I mean we literally just had the perfect example of real world financial management following ESG principles. Silicon Valley Bank.
Theoretically this rule should naturally sort itself out, with woke 401k managers who invest based on ESG having poor returns and customers fleeing to those 401k managers who do not.
Moral of story is watch your 401k and know what your manager is investing in.
This should be true, but many folks have very little control over their employer sponsored 401k. One of the recent trends in virtue signaling amongst companies is to put employees 401k management into the hands of more "progressive" managers. That way they get to virtue signal with someone else's money.
Now one way to deal with that is what is called an "in service rollover". Not all funds allow it. Basically you roll over your 401k funds from your current employers plan into a different plan, just like when you leave one company for another. You cannot touch the money, it just has to transfer to the new fund. But you can gain more control of how it is managed. Your contributions and any match keep going into the employer account while the balance is somewhere else. You just have to wash-rinse-repeat. I'm not well versed in this one, but the option exists.
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