Skip to comments.'Automatic' IRAs to Fill Retirement Gap
Posted on 08/12/2010 10:01:10 AM PDT by Clairity
A bill filed by U.S. senators Jeff Bingaman (D-New Mexico) and John Kerry (D-Mass.) would automatically enroll most U.S. workers in individual retirement accounts if their employers don't sponsor a retirement plan.
All automatic IRAs would offer the same three standardized investment options, each to be developed with regulations and fee guidelines issued by the Treasury and Department of Labor. The options would include a "principal preservation fund" (which would include a special Treasury Retirement Bond , the R-Bond, designed for use within an automatic IRA), a "life-cycle" option and an "alternative investment option" that can include a higher concentration of equities.
(Excerpt) Read more at thestreet.com ...
This article doesn't mention, but other ones do, that the default is a Roth IRA, so you can't even save on taxes. The government will tell you how to invest it, there are only 3 options (see above), with the default investment a US "R-bond", retirement bond
Related article with additional information:
We are all too stupid to decide for ourselves, we need the government to force us to save and to take away any personal options of how to invest.
I’m sure this one will have a lock box to make sure the money is actually there when you retire /sarc
This is really a tax increase. The government will use the money and deposit IOUs into the IRA accounts. Then down the road, they will have to figure how to come up with the money. Let’s get rid of SS and let the people have personal accounts.
Well they are trying to force Americans to buy HC, Why not go for the retirement mandate.
One of their Wall Street buddies must have come up with them.
Remember the float of Gov getting control of Pension plans. Guess they are serious. If there is money to be stolen the Dums will try to get it.
In other words, this is just another scam, like the Social Security trust fund, to get our hard-earned pay to finance government deficit spending.
That's an interesting point. Will these accounts consist of real investments, or will they be IOUs whose returns is based on a tracking index? If the latter, we could fund the Social Security Ponzi scheme for another 20 years!
UNEXPECTED, the confiscation of wealth begins.
Oh boy, the D’s behind the names, and the sleazy names themselves gives the laugh to this plan.
These two clowns have never nor can ever do anything creative or beneficial.
Good gawd, folks, they’re members of the stupid - er - ruling class.
And also we can “keep the retirement plan we have now” — just like “we can keep our insurance and doctors we have now” under Obamacare.
The government is taking over our personal finances.
So they’re basically recreating Social Security by instituting mandatory savings and retirement plans? Right now employees can opt out, however, how long will it be before it is compulsory?
“The government will use the money and deposit IOUs into the IRA accounts.”
Exactly — that’s the whole idea, what do you think that US “R-bonds” will be?
They will take the money now, then Obamacare will make sure Seniors don’t live long enough to actually want to use their money.
“In other words, this is just another scam, like the Social Security trust fund, to get our hard-earned pay to finance government deficit spending.”
You hit the nail on the head.
But they are hoping we are too stupid to figure it out.
How much you want to bet that the government is going to force these IRAs into government bonds? The Feds need more people to buy the debt / bonds so they can continue their quantitative easing program. Got to spread the wealth .... err debt don’t you know.
Time to go sharpen my pitchfork again and reheat the tar........
The government will manage our money so much better - we can see how fiscally responsible they are... (/sarcasm)
They want to control all aspect of our lives and want us to be completely dependent on the government for our health, lives, financial “security”.
I am from the government and I am here to help you. (/s)
“How much you want to bet that the government is going to force these IRAs into government bonds?’
They ARE doing that — gvoernment bonds are the default, they just call them “R-bonds” (retirement bonds).
They are forcing people to loan money to the US government, and later they will figure out a way to NEVER have to pay it back to us.
The reason personal accounts are not sponsored by Democrats is the mere fact they will not control nor have jurisdiction over people’s lives as they do with Social Security.
The same fact holds true to Government workers on all levels (Federal, State and Local). They can collect taxes from the private sector and pay the public sector with ever increasing rates.
This gives the Government leverage over party loyalty and union affiliation as they extort money from the productive to pay for the non-working and the State workers who produce nothing in the way of GDP.
The question comes to necessity, are soldiers, cops, firemen and teachers important? Yes they are, but should we pay for them for life...maybe cops, fire and military as they put their lives on the line...but run-of-the-mill paper pushers in the courthouse or DMV?
I would like all public employees, except cops, prison guards and military, to have 401K’s they contribute to, and based on the FY profit or loss, their employee match is in lockstep with the overall private sector.
Unions killed the auto industry, the airlines and now are killing the government.
Time for reform. Now.