Free Republic
Browse · Search
General/Chat
Topics · Post Article

Skip to comments.

Your 401K and IRA: You Don’t Actually Own the Securities in Your Account
American Thinker ^ | 03/15/2024 | Chris Talgo

Posted on 03/15/2024 7:11:57 AM PDT by SeekAndFind

Although it sounds too far-fetched to be true, Americans don’t actually own the stocks, bonds, mutual funds, and other assets held in common retirement vehicles such as Roth IRA and 401(k) accounts. In reality, Americans own what are called “security entitlements.”

Back in the old days, before digitalization fundamentally transformed the mechanics of financial transactions, this was not the case. But that was then. This is now.

Most Americans have probably never heard of the Uniform Commercial Code (UCC), which is “a comprehensive set of laws governing all commercial transactions in the United States.” Even fewer Americans are familiar with Article 8 of the UCC, which “provides a modern legal structure for the system of holding securities through intermediaries.”

In the mid-1990s, Article 8 was revised so that “investment securities can be safely used as collateral” by large financial institutions. Essentially, this modification of an obscure set of laws allowed big banks to use their customers’ securities in investment accounts as collateral in the derivatives market.

Eventually, the big banks began using their customers’ securities as collateral to make money in the developing worldwide derivatives markets. Basically, banks like JP Morgan Chase, Citi, Wells Fargo, Bank of America, and others pool these assets in places like the Depository Trust Company (DTC), which “is a member of the U.S. Federal Reserve System, a limited-purpose trust company under New York State banking law and a registered clearing agency with the U.S. Securities and Exchange Commission.”

Incredibly, the DTC retains “custody of more than 1.4 million active securities” valued at more than $87 trillion. Despite the fact that most Americans have no idea about the DTC and what it does, it carries immense power and influence throughout the financial world.

(Excerpt) Read more at americanthinker.com ...


TOPICS: Business/Economy; Society
KEYWORDS: collateral; ira; retirement; securities
Navigation: use the links below to view more comments.
first previous 1-2021-4041 next last
To: SeekAndFind
“derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal."

Allow only incremental booking of profit from fee as security matures. Hold the gross amount in balance sheet as deferred revenue.

21 posted on 03/15/2024 8:18:41 AM PDT by Retain Mike ( Sat Cong)
[ Post Reply | Private Reply | To 1 | View Replies]

To: eyeamok
Sadly, I believe you are correct.

I have moved my 401k out of the market into a tacit savings account to shield it from market fluctuations.

Now I think I may have to move it...or get ready to move it...to a different vehicle to protect it from the clutches of the US Gubmint.

What you describe would change everything I've planned and would put me in a very untenable position. I never did want to have to depend on my preps. Comestible and...otherwise. But I'll use both if forced to.

22 posted on 03/15/2024 8:36:29 AM PDT by Bloody Sam Roberts (The Truth is like a lion. You don't need to defend it. Let it loose and it will defend itself.)
[ Post Reply | Private Reply | To 20 | View Replies]

To: eyeamok

” It has been buried and deleted from the internet, but it will soon be resurrected.”

So you think that the federal government passed legislation, which was publicized at the time, but now all trace of it has been removed.

There is not even the slightest chance that is true.


23 posted on 03/15/2024 8:40:32 AM PDT by JSM_Liberty
[ Post Reply | Private Reply | To 20 | View Replies]

To: SeekAndFind

Does that mean these institutions can sell our securities to cover their losses, and in the selling we lose our securities?

Has that happened?

Financial institutions have failed over past years but I don’t remember reading that ordinary holders of securities have lost them entirely.

I don’t believe that institutions “own” securities held by them.


24 posted on 03/15/2024 8:43:38 AM PDT by cymbeline
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

News Flash: unless you are holding the original, genuine hardcopy certificates in your hot little hands, you don’t actually own any stocks or bonds.


25 posted on 03/15/2024 8:43:44 AM PDT by Go_Raiders (An nescis, mi fili, quantilla prudentia mundus regatur? - Axel Oxenstierna)
[ Post Reply | Private Reply | To 1 | View Replies]

BKMRK.


26 posted on 03/15/2024 8:47:11 AM PDT by Carriage Hill (A society grows great when old men plant trees, in whose shade they know they will never sit.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

https://thegreattaking.com/

A downloadable e-book and video doumentary.


27 posted on 03/15/2024 8:47:39 AM PDT by evilC
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

p


28 posted on 03/15/2024 8:48:41 AM PDT by gattaca (Once a nation loses control of its borders, it is no longer a nation...Ronald Reagan)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Vermont Lt

This is why I won’t be giving up my self-directed IRA holding cryptocurrencies in my own wallets, rather than investing in a bitcoin ETF, any time soon. Not your keys, not your coins...


29 posted on 03/15/2024 8:57:42 AM PDT by EnderWiggin1970
[ Post Reply | Private Reply | To 6 | View Replies]

To: EnderWiggin1970

A GOP congress should allow for a $100k withdrawal tax-free. Tax cut for the rich-so what? The money spent will give the economy a big shot in the arm. It’s the rich that pull the cart.

Do it before the rats take it for themselves.


30 posted on 03/15/2024 9:08:12 AM PDT by DIRTYSECRET
[ Post Reply | Private Reply | To 29 | View Replies]

To: SeekAndFind

BTC ETFs are a similar situation. Possession is 10/10th’s of the Law. Keep your Coins in a combination of cold storage and separate Cryto houses.

The real problem is that BTC is going to become the glue that binds Nation’s in the future. Each nation’s fiat currency will have a value for which it can purchase BTC. Then there is the 3-5% fee for conversion, exchange or trading.

Watch GOLD closely. It is seeing huge out-flows into Bitcoin.

Of course BTC goes up and down, but it is being purchased at a rate of 20-50x daily to the newly minted coin. It is limited to about 21M. Greyscale/FTX are dumping 10,000 BTC a day and it has had not noticeable depreciation upon markets. No one screwed by the DNC FTX campaign scheme is going to lose money - the coins being sold allow them to liquidate accounts in good standing. Two more months of FTX liquidations and 1.5 months until the halving. Once all the liquidation of FTX/Greyscale holdings are accomplished, the true value of BTC will begin to emerge.

Four BTC today will make you a millionaire a year from now.


31 posted on 03/15/2024 9:14:37 AM PDT by Jumper
[ Post Reply | Private Reply | To 1 | View Replies]

To: Bloody Sam Roberts

Get your self a Ledger Device, and a stack of Metal Key Cards. Etch your Keys for each account into the metal. Make two copies. Store your Ledger in a series of fireproot “Russia doll” devices make to hold serveral inside one another. Buy some BTC. Cold storage. It’s your in hand pocket Swiss bank account.

In fact, I’m preparing to purchase several ledger devices. I am going to put 1/10 of the BTC on each one of them. I have the 3x thumbdrive Pill Case style heat/fireproof contianers on the way. I think if I use three per device and then keep them in a safe or buried they sould stay safe from destruction.

I have written up some legal documents for distribution of my BTC to certain individuals in my family. These will require each person recieving a ledger drive take training and demonstrate use of the device (with a second device and $50 worth of BTC) on them before they can take possession.

One of the things I want to do is have 1/10th BTC provided to each of my children every few years to ensure they will continue to enjoy a comfortable lifestyle.

There is actually a market for Ledger’s where people buy them at 18-10% premium simply to take possession without anyone knowing they have it in cold storage.


32 posted on 03/15/2024 9:26:00 AM PDT by Jumper
[ Post Reply | Private Reply | To 22 | View Replies]

To: Jumper

Hopefully your heirs are smart enough to say thank you—and then cash them out immediately.

Lol.


33 posted on 03/15/2024 9:29:14 AM PDT by cgbg ("Our democracy" = Their Kleptocracy)
[ Post Reply | Private Reply | To 32 | View Replies]

To: SeekAndFind

I’m in only for t h e 100% match. I cash out quarterly cause I can. Oh, my contributions are in a Roth 401k.


34 posted on 03/15/2024 9:30:04 AM PDT by RebelTXRose (Our Lady of Fatima, Pray for us! PRAY THE ROSARY!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

This is about a distinction without a difference.
Also, be aware, that it is pretty easy to change a law: just takes someone with a pen.
Even a bumbling incompetent old codger who lacks legal capacity (to stand trial for crimes committed over many decades) can change a law.


35 posted on 03/15/2024 10:40:26 AM PDT by Honest Nigerian
[ Post Reply | Private Reply | To 1 | View Replies]

To: z3n

If you live in a state with property taxes, you don’t actually own the title to your home. You’re just renting it from the title granting state, and if you fail to pay your rent, you will have it repossessed.
All you really get is the right to sell it again.
**********
Just like owning property in a Communist country.


36 posted on 03/15/2024 11:33:43 AM PDT by yldstrk
[ Post Reply | Private Reply | To 12 | View Replies]

To: z3n

It is the same with your car. If it is “paid off” you do not hold the title. You hold a “Certificate of Title”. It is a promise that the State gives to you that you are “owner”, until they want to seize it. I had the State go after me because I sold a truck my dad sold to me, for a tidy profit. They came to my house with the police, I told them to stuff it. I sounded strong, but I was scared poopless.


37 posted on 03/15/2024 11:50:25 AM PDT by Glad2bnuts (“And how we burned in the camps later, thinking: We should have set up ambushes...paraphrased)
[ Post Reply | Private Reply | To 12 | View Replies]

To: cuban leaf

You can only spend so much. I keep mine close too.


38 posted on 03/15/2024 11:51:33 AM PDT by Glad2bnuts (“And how we burned in the camps later, thinking: We should have set up ambushes...paraphrased)
[ Post Reply | Private Reply | To 15 | View Replies]

To: yldstrk

Whomever or whatever holds the Title, owns your stuff........ and YOU.


39 posted on 03/15/2024 11:57:29 AM PDT by Glad2bnuts (“And how we burned in the camps later, thinking: We should have set up ambushes...paraphrased)
[ Post Reply | Private Reply | To 36 | View Replies]

To: eyeamok

Would this include working checking accounts?


40 posted on 03/15/2024 5:51:11 PM PDT by oldtech
[ Post Reply | Private Reply | To 10 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
General/Chat
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson