First they Came For the 401(k)s, but I was a Roth IRA

The Voice of Reason ^ | February 21, 2010 | Texas Peartree

[Texas Peartree]

It has been reported by Business Week that the US Labor Department and Treasury Department are asking for public comment on a plan to convert individuals' retirement accounts (IRAs and 401(k)s) into government sponsored annuities featuring US Government bonds. The scheme would start off as voluntary, but only makes sense -- like socialized health care -- if it becomes mandatory and universal.

In essence the government is asking if we would mind if they nationalized our money in return for a promise of more money in the future . . . like a Ponzi scheme called Social Security, but even more nonsensical because people can already voluntarily hold T-bills in their retirement accounts. Why force people?

Ah, that is the rub. The Chinese and Japanese increasingly fear buying new US T-bills as we increase our money supply to pay for needless stimulus spending. Holding too much of our debt is increasingly problematic. Would you want to hold California State Bonds?

Today, not enough Americans are willing to buy T-bills through their retirement accounts. So the government wants to take our retirement accounts and convert them into low yield government bonds. Very convenient! Also, it must seem very fair, since only the well-off have been saving for retirement.

If this comes to pass it will be a disaster. Why would I continue to withhold present-day income in to a retirement account that must buy low yield US Bonds? Frankly, by socializing retirement in this way, we would remove the benefit a thrifty person would have over a spendthrift. It would be a one-time theft because all incentives for retirement savings and personal responsibility for retirement would end the day the government stole all savers' money.

[ANGGAPO]

Never ever trust the Government with your money.

[IncPen]

In the unlikely event the Feds actually pulled this stunt there would be open violence and frankly, I’d probably support it.

I would support it and very likely participate in it. The problem in this country is that the elected officials do not fear the electorate on any level.

Read 'Unintended Consequences' by John Ross.

[bruinbirdman]

"IRAs or 401K Offset to Social Security."

Means testing.

yitbos

[Enough is ENOUGH]

Miller is a member of the progressive caucus. He is the chairman of House Education and Labor Committee.

There are only about 75-80 progressive caucus members yet it is scarey how they have managed to obtain chairmanships of most committees in order to ram their ideological policies down our throats. Learn who these people are. They will be formulating and ramming their marxist policies down our throats on a regular basis. http://cpc.grijalva.house.gov/

[celtic gal]

My response to the Govt is keep your effing hands off my retirement IRA savings..You did not earn it and I’ll be damned if you are going to take my savings and give it to someone who always has had their hands out for someone else to fill with something.

[Tahoe3002]

Like in New Hampshire, “Live Free or Die”
Or from the 1960’s-70’s, “Better Dead than Red”

This would be the final trip wire. For many Americans, there would be no tomorrow.

[StopObama2012]

Here’s my public comment: Mr Hussein, hop on your magic carpet and fly back to Mecca.

The USA doesn’t want your dirty Moslem sabotage.

[Salgak]

Gold. Silver. Liquor. Long-storage foodstuffs.

And, likely. . . .copper-jacketed lead.

[padre35]

Those are more household items, do you foresee Inflation on the horizon vis a vis Pugsely’s Alpha Strategy?

That is a good approach, however one still has to earn profits to make up for the increase in billable services such as Water, Power and Property Taxes.

[Soul of the South]

Inflation is starting to increase. Since January 1 my company has been notified of price increases by suppliers of 8 to 10%. Our health insurance company presented a 30% renewal hike which we have negotiated down to 12%. Walk through the grocery store and look at food prices. In contrast, real estate prices continue to fall as do real wages.

[Mike Darancette]

I think the Government should take over and manage labor union pension funds.

[Enough is ENOUGH]

Hope you didn’t have to give up much to lower your HI > down to 10%. We were getting steady increases over the last 12 years and had to finally cut back. Those supplier increases do not bode well because the worst is still a good ways ahead of us.

Now that inflation is beginning I hope businesses don’t jump the gun on it. The worst shouldn’t occur until after the unemployment percentages decrease. I spoke to a representative of a national financial planning firm who said the inflation is expected to be incremental over a period of years. We’ll see.

I expect real estate values to keep on dropping. There are a few more adjustments due. There is still the expected commercial property time bomb to deal with.

This administration better cut way back on its spending or all hell will break loose, soon.

[Nailbiter]

http://www.freerepublic.com/focus/f-news/2458414/posts
Now he is after personal savings

I remember discussion back in 80’s shortly after Red Dawn premiered. Sitting in kitchen of neighbors house. My friend and I were discussing some of the funnier points of the movie, when my friends parents expressed that premise was unbelievable.

My friend and I started explaining that chemicals in typical household could easily be converted to weapons, we the started in on how we would use these weapons and other easily converted household items to make life difficult for invaders. Academic discussion of young folks

We seriously scared his parents at the time.

Little did I know at the time, that in my lifetime I would be facing a threat from within, my govt, as opposed to threat from a far, a hostile govt.

0’s handlers and 0 himself truly under estimate the will of the people they have been trampling.

0 better wake up and realize that when the American people are provoked, we are slow to anger but when we get going we do not stop until the job is done.

I spoke of this with my financial adviser ( seizing 401’s or taxing before due date) sometime in the near past. Financial advisor laughed off as impossible.
At the time I was only speaking of 401ks, I am not most astute investor, but I could see that pols would love to have dollars in near term as opposed to inflationary dollars in long term. I seriously mis-understood the threat as I did not see Obama (socialist president and enablers) on the horizon at the time.

I wish I was wrong. But if this pattern continues there is going to be bloodshed as the sheeple realize that there will be no retirement, there certainly will be hardship down the line for this generation, your kids, grandkids and possibly great kids to pay for this bullshit legislation.

I agree with incpen, if you have not read Unintended Consequences’ by John Ross, you as freepers should.

[WOBBLY BOB]

401k advice:
to cash it all in and take the hit?? what’s the tax rate on doing so?
do it now or wait till the job goes away? (is losing your job a valid “hardship” to do so without penalties?)
use the cash to pay off debt and ???
my thinking now is keep it and it’ll become worth nothing via inflation, or worse, be taken by our government.

[jersey117]

Ditto that. I didn’t work and save money in my 401k for the past three decades so the thieves in Washington could steal it just as I am about to reach eligibility. You bet I will fight.