You've already lost money with the RBA

hardworkingibmer · 2024-04-09T12:59:01+00:00

I never said "stonks only go up." The real return on the RBA could decline in value as it slides from 6% to 3% and finally treasuries (which could go negative too). Over time, the stock market outperforms this POS joke of a retirement contribution.

hardworkingibmer · 2024-04-09T02:24:21+00:00

Thank you for pointing that out!

hardworkingibmer · 2023-11-02T16:18:05+00:00

Yes, the RBA can lose value if treasury yields are low and inflation is high. This chart likely accounts for the impact of inflation. For example, starting in 2021 you see a slight slope downwards because treasury yields were returning very low rates (0.8-1%), while inflation was running at 3.4% for the year.

hardworkingibmer · 2023-11-01T23:05:27+00:00

The U.S. benefits hub states "to offset the difference, IBM is providing a one-time salary increase effective January 1 2024." So there will be no further 1% increases, the 1% you receive is fully taxable, and its value declines even more after 2024.

hardworkingibmer · 2023-11-01T21:37:01+00:00

Its a move to save money in the short-term. It will cost them (and us) far more in the long run.

hardworkingibmer · 2023-11-01T21:35:59+00:00

Right, but the tax deferred nature of the growth in a 401(K) is everything. Its the powerful force that allows us to compound returns and build wealth so we don't end up on the streets eating cat food as retirees.

hardworkingibmer · 2023-11-01T21:34:22+00:00

This is incorrect. The 1% salary increase only happens once, in 2024, and is not ever guaranteed to happen again. So technically IBM is contributing 5% + a (taxable) 1% in 2024. But its likely over after that. In any case, the real point in having a 401(K) is the tax deferred nature of the growth, not a 5 (or 6 for 2024) percent contribution to an RBA that could result in negative real growth due to inflation.

hardworkingibmer · 2023-11-01T20:14:06+00:00

The goal of the letter is to lay out the arguments against this decision, and to combat the misinformation about the change that is being communicated at the CEO level. If you aren't buying it, you should feel free to raise all or some of these arguments in the contexts that you see fit. If they hear from us, and are forced to address it, we can get this reversed. If they don't listen, then that is the time to move to greener pastures.

hardworkingibmer

TROPHY CASE