401(K)s

401(k)s

Regarding the Tribune News Service story "Tapping 401(k) to buy house tempting, risky" by Jack Guttentag (The Sunday Capital, May 21):

Participants in 401(k)s should consider why they have so much in a 401(k) to begin with. That it's a poor and risky source of borrowing is just one of the problems associated with having substantial sums restricted by 401(k) rules.

Hordes throw significant amounts of personal wealth into 401(k)s thinking they are saving on taxes, when there is no tax savings of any kind. Taxes aren't "forgiven," merely postponed. Knowing full well the tax code doesn't mention a single word about tax savings, financial advisers implicitly support this folly. There are possible, but unlikely, savings at retirement if the participant is broke.

Taxes are historically low and could go lower. A family in their mid-40s with a mortgage, children and other deductions is in all likelihood paying the lowest taxes they will pay in their life. To postpone a little bit of taxes and tie up hard-earned capital in a 401(k) is not prudent. When these facts are ignored, participants will be plagued by many problems.

I was impressed that the Internal Revenue Service allows "hardship withdrawals" and decides what an "acceptable hardship" is. What tyranny! A person works hard, earns money, then voluntarily turns it over to banks and the IRS to make the rules on how that money can be used for the rest of their life. The IRS frequently rewrites rules to suit its needs, not those of participants.

When banks and the IRS take over money, they don't offer a single benefit, promise or guarantee. They make bets; participants take risk. Banks call these funds "assets under management" and make a princely income from them, while the participants are shackled by restrictive rules.

STUART NEFF

Annapolis

Positive view

I have lived in Annapolis on and off since 1971 and feel a rightful sense of ownership of my adopted hometown. I am becoming tired of listening to the never-ending discussion of the racial divide in our town and society. While differences do and will always exist, past a certain point, overly focusing on these differences gives us a false picture of who we really are and may do more harm than good.

I believe we are at that point here in Annapolis.

Marketers know that fear sells, so if you can make someone afraid or apprehensive, they are more apt to embrace your cure or call to action. This brings individuals who exploit that fear for their own benefit.

You have only to look around you at any given minute on any given day in any given location here in Annapolis to see ample evidence of our shared humanity and good will with folks of all ethnicities and backgrounds: barbershops, grocery stores, sports events, churches and day-to-day life on the street - not unlike what Louis Armstrong describes in his memorable "What a Wonderful World."

To afford a highly visible forum to individuals whose influence depends primarily on focusing on the last remnants of past racial differences promotes a distorted view that we Annapolitans are collectively less than we truly are.

I suggest strongly that The Capital examine its policy of elevating every racial discussion to the level of front-page news or editorial columns, and carefully scrutinize the reason and nature of any racially focused topic before rushing to print. This has some risks, but takes the courageous step of advancing the truly positive image and well-being of our community as a whole, not just the vociferous point of view of an increasingly anachronistic fringe.

MICHAEL L. CECERE III

Annapolis

ISIS, cancer

President Donald Trump is too kind when he labels ISIS "evil losers" in referring to the heinous attack that killed 22 and injured more than 60 at a concert in Manchester, England.

ISIS is the cancer of mankind. ISIS exists only to cause terror, pain, death and destruction, without mercy, for the sole purpose of doing evil itself.

I would not wish cancer on my worst enemy, as the horrible pain it causes can only be eased by powerful painkillers like morphine. And like cancer, the pain ISIS inflicts on mankind is no less excruciating.

This is the legacy of ISIS, one of pure evil. ISIS is the cancer of mankind because it simply is.

JOHN M. BUCCI

Glen Burnie