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OPINION: Enron's 401(k) Ills Were Bad, but Medicine Might Be Worse.

Richmond Times-Dispatch (Richmond, VA)

| February 09, 2002 | COPYRIGHT 2007 Richmond Times-Dispatch. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: Bob Rayner

Feb. 9--This Enron mess is starting to make me really mad.

Yes, I'm irritated by executives hiding debt, inflating profits and selling their own shares at the expense of stockholders and employees.

And I'm even more upset about so-called independent auditors who, by not doing their jobs, have undermined confidence in the entire stock market, at least for the moment.

But what really gets me hot under the collar is the hysteria these folks have stirred up about 401(k) plans.

The self-managed retirement accounts are one of the greatest inventions ever for spreading wealth to everyday workers.

A typical 401(k) allows you to convert about 70 cents of take-home pay into $2 of savings, thanks to deferred taxes and company matches. The real magic kicks in as that money compounds for…

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