Posted on 02/14/2014 3:08:26 AM PST by Cincinatus' Wife
When President Barack Obama introduced a new retirement savings plan during his State of the Union speech last month, the Republican response was uncharacteristically muted. Although Republicans were upset about the president’s new reliance on executive authority to push his agenda, they had few harsh words about the details of the retirement idea.
Dubbed MyRA, Obama’s initiative is intended to allow workers who do not have access to other workplace savings plans to open an account overseen by the government that would invest in low-risk Treasury bonds. It’s a relatively modest proposal, one that would be entirely voluntary for employers and employees and would only guarantee low returns to minimize risk.
“I certainly will look at that,” said Rep. Phil Roe, R-Tenn., ranking member of the subcommittee on pensions at the House Education and the Workforce Committee. “Anything for economic security downstream, I will look at that.”
“I’m almost for anything that would allow people to save more and take care of the future,” said Sen. Orrin G. Hatch, R-Utah.
The GOP’s reticence is no accident. Even in an era of bitter partisanship, there is agreement among experts on the left and the right that the retirement security of Americans is a pressing issue. What’s more, there’s broad agreement on how to fix the problem.
One key solution, many on both sides agree, would be some form of automatic deduction from worker paychecks into a retirement savings account, with workers given the choice of opting out. The idea was featured prominently in a Heritage Foundation report and in a study by the liberal Center for American Progress.
Behavioral economists have long found that workers are much less likely to voluntarily deduct part of their paychecks to finance a retirement account. In workplaces where the employer automatically enrolls new employees in a plan, the pickup rate increases. One study found enrollment in retirement plans grew from 37.4 percent to 85.9 percent after it became mandatory.
That suggests that automatically signing up workers for a retirement savings plan would go a long way toward winnowing the gap between what Americans have saved and what they will need to cover basic expenses in retirement. According to the Employee Benefit Research Institute, that gap now stands at $4.6 trillion.
Obama has also embraced the idea of mandatory savings and included language in his budget proposals to create automatic individual retirement accounts for people who do not have a work-based retirement plan such as a 401(k). The administration’s idea would mandate that employers with more than 10 employees set up IRAs for their workers. The proposal includes tax credits to soften the blow on smaller firms.
If there is a tax deferral of any kind on the account, government considers the account their property until all taxes due are paid.
Save accordingly...
We’re going to see further increases in “crony capitalism” and I’ll bet you TONS of “environmental” investments are in the pipeline (as the public has been primed to believe this is important and the powers that be refuse to allow any opposing voices (extremists) to participate in the discussion or raise the alarm on the fraud of global warming/climate disruption).
And it is the Clinton GLOBAL Initiative (CGI) that is orchestrating much of this.
This totally misses the point of the risk in any long term savings plan. There are TWO sides to the risk. One side is loss of principle, the other side is underperforming inflation. A key to any retirement savings is compound interest - making interest on interest. When the interest rate is lower than the inflation rate, the value of the savings goes DOWN. T-bills aren't a very good savings instrument for that reason alone. An even more critical reason is that you simply can't trust the government for anything, much less, your retirement.
Ah...get to the bottom 4 paragraphs...there is not intention for this to be ‘opt out,’ note Mandatory this and that along the way.
I had to walk away from the computer on this one. My head is ready to explode.
So...we have 0bamacare cutting people down to part-time work. Democrats saying how wonderful that people can now stay home and tuck the kids in at night! Pursue other hobbies etc. (who keeps the heat running, lights on, and food on the table?). That healthcare subsidy sure ain’t gonna be enough.
Now they want employers of 10 or more people to set-up IRA’s for their employees? We already contribute to their SS and maybe their 401K’s with an employer match. Now the government wants to redistribute more? OK. I won’t hire as a microsized business, I won’t hire. Thanks for the glass ceiling there.
But...the thought that truly occurred to me is Michele Obama said during a campaign stop, “Barack will require you to work.” When does that hit? A redistribution of fulltime workers to part-time workers? If everyone is required to have savings/retirement accts. then either the few workers must support the many OR the many will be forced to work (slavery/work camp) or look I can go to work for the new government minimum wage...
Notice that they are confiscating what employers have often used to attract great workers. The government is taking over the employment benefits.
How is the government able to justify this kind of nitty-gritty details of life?
The stock market is propped up by Federal Reserve papier-mâché.
If things crash, watch all hell break loose.
If things get bad enough, expect the Government to sieze all 401Ks and IRAs. People think I am crazy, but I am telling you it is coming. People also never thought the Supreme Court would rule that the Government could force you to purchase something that you didn't want to purchase.
Whistling through the graveyard......
See Post #15 for background.
David Horowitz [written in 2000 but a must read for today] Hillary Clinton and "The Third Way" How America's First Lady of the Left Has Bamboozled Liberals and Conservatives Alike
Team Clinton started talks on 2016 run night of Obama's victory "Political advisers Harold Ickes and James Carville and former Rep. Ellen Tauscher (D-Calif.), all close to Clinton, signed on in advisory roles in 2013. Craig T. Smith, who had been a White House political director under former President Clinton, was hired to run the group’s day-to-day activities.
Hillary Clinton allies were given tacit approval to support Ready for Hillary.".....
Why, in the Commerce Clause, of course! Congress simply has to "find" that something could conceiveably have a "substaial effect on interstate commerce", and they're good to go.
They should've shot Wickard and sent Filburn to Congress.
Obama to announce $1B climate resilience fund "During his visit to California on Friday, President Obama will announce a new $1 billion resilience fund for communities battling climate change.
The Climate Resilience Fund, meant to help communities better adapt to the impacts of climate change, is a part of the administration's new drought response efforts that Obama will launch on Friday after visiting with farmers in Fresno, Calif.
During a call with reporters on Thursday evening, the assistant to the president on science and technology, John Holdren [co-author of "The Population Bomb" and other writings on environmental dangers - including the need to de-develop the United States], said without any doubt the severe drought plaguing California and a number of other states across the country are tied to climate change.
"Weather practically everywhere is being caused by climate change," Holdren said.
The new fund — separate from Obama's climate agenda announced last June — will be detailed in the president's 2015 budget, set for release next month.
The administration's fund will invest in research to gather data on the impacts of climate change, help communities prepare for the impacts, and support innovative technologies and infrastructure to ready the country "in the face of a changing climate."
"Recent events have reinforced our knowledge that our communities and economy remain vulnerable to extreme weather and natural hazards," the administration said in a statement on Thursday.
When asked if talk of climate change tied to extreme weather events like California's drought by Obama would become more frequent, Holdren said it already has been a recurring talking point for the president.
Holdren added: "You can expect the president will talk about the connection between increasing frequency in the intensity of drought and climate change on Friday" and in the future."
Federal employees have a Thrift Savings Plan, like a 401K, that Treasury has routinely "borrowed" from. I could post a dozen different stories about it over the span of the last 3 years.
Obama's plan for MyIRA is modeled after TSP. What it all really means is that Obama is planning on getting more and more Americans "vested" in something the Federal Government can control and then lay claim to. This is the classic set up to seize everyone's retirement funds. They will wait for the next financial crisis, probably a large stock market drop. The plans are already in place.
“One key solution, many on both sides agree, would be some form of automatic deduction from worker paychecks into a retirement savings account”
Sounds pretty much like my 401k.
Exactly.
His plan allowed for it to be protected and to remain your money - I bet this plan will make another slush fund that will become an unfunded debt once they "borrow" the money to buy more low-info votes.
Of course this idea conflicts with the Dems Keynesian economic model that says $$$ must be handed to the lower income peons because they will spend it, stimulating job creation.
If they save it then they cannot not spend it (in present).
Watch out for government savings accounts, they spend the so called trust fund $$ as soon as they got it.
Fix the “retirement gap”? Why that is just so easy! Just confiscate the retirement accounts from all the ants who worked hard and saved their money instead of spending it all right away, give a little bit of the stolen money back to the ants, but then give the rest to the grasshoppers.
When the return on bonds and relatively safe assets is below inflation, people are less likely to save. The second retirement gap is even larger - as more money is siphoned away from retirees via low returns and inflation.
The Plan to Steal Your 401k
http://www.rushlimbaugh.com/daily/2012/11/29/details_the_plan_to_steal_your_401_k
Bookmark
Money will be taken not voluntary and when you retire they will give you what they think is fair, much like social security, it’s only fair
So here it is: Provided your income is low enough, the federal government will pay you to stash money away for your retirement — giving you as much as $1,000.
The deal comes through what's known as the “saver's credit.” You can find it buried in the tax return you do each year, and if you use the free tax preparation software the government gives people with incomes below $58,000, locating the saver's credit will be fairly easy. The “Free File” software is available at IRS.gov."............
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