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To: anachronist who wrote (34762)	8/2/2005 8:13:25 PM
From: CalculatedRisk	Respond to of 116555

I excerpted from that article ... pretty much without comment. I like Gen'l Glut's short post this AM on the same subject: "Reaching the Rubicon" globblog.blogspot.com We have reached the Rubicon of zero savings. I wonder what happens if we cross it? Dr. Hamilton (UCSD Econ Prof) had a nice discussion about this just a few days ago... econbrowser.com

To: anachronist who wrote (34762)	8/3/2005 12:13:27 AM
From: Roebear	Respond to of 116555

There is probably an error in this statement: Any money directed into 401(k) plans is considered to be part of take-home pay, because it is after-tax income. But that money isn't available to spend. Much of the income contributed to 401K plans is PRE Tax and employers always push the pretax contribution as opposed to post tax. I have heard from a CPA that many plans only allow pretax contributions, but that is hearsay, I have no experience with that. Also the 401K money IS available to spend, in the short term, as one can loan against the 401K up to 50,000 dollars. It must be paid back within 5 years unless it is used to (you guessed it) buy a house. Many blue collar workers do in fact take out loans from their 401K's, much as they take credit lines from their home equity...