Skip to comments.US Departments of Labor and Treasury Schedule Hearing on Confiscation of Private Retirement Accounts
Posted on 09/01/2010 5:56:28 PM PDT by Orange1998
On August 26, the US Department of Labor issued a news release It lists the agenda for the joint hearings being held with the Department of Treasury September 14-15, 2010 on what is euphemistically called lifetime income options for retirement plans. The hearings are being conducted by the Labor Departments Employee Benefits Security Administration.
I dont like speaking in tabloid-style terms, but the unstated agenda of these hearings, as I understand it, is to push for the US government to eventually nationalize (confiscate) all assets in private Individual Retirement Accounts (IRAs) and 401K plans!
The US government is desperate to get its hands on private assets to help cover soaring budget deficits and debts, and this is simply the largest and easiest piggy bank that could be seized. The Investment Company Institute estimates that at the end of 2008 that there were $3.613 trillion of assets in IRAs and $2.350 trillion of assets in 401K plans.
For more than the past ten years, I have warned readers that the US government was eventually going to go after private retirement accounts. I considered that as the most important reason to avoid establishing precious metals IRAs. Very few other writers (Ron Holland being one) have picked up on this issue as early as I did. In fact, the mainstream media pretty much ignored the subject even after a House Committee held hearings on the issue in October 2008.
Obviously, an outright seizure of assets would meet stiff resistance from the public. So the confiscation will never be described as such by government officials. Expect to see terms such as retirement income protection thrown around. It is highly likely that such a program would be implemented in steps to help overcome public opposition.
The US government plan is to eventually take ownership of all assets in IRAs and 401K accounts and replace them with US government Treasury Retirement Bonds. In the October 2008 hearings, it was proposed that these bonds pay a 3% interest rate. Another major change is that, upon retirement, the individuals retirement account would be converted into an annuity. Once the individual is deceased, the individuals heirs would not inherit anything (similar to what happens now with Social Security accounts).
This may wake a few people up!
I cannot think of a policy that will more quickly induce people to quit investing in IRA’s and other retirement accounts.
They try that crap and I fear a lot of people are going to get killed!
If the dumbass in the White House was looking for a way to start CWII, he’s found it.
What makes you think they've lost power?
I hate this administration with a passion, they are pushing people over the edge.
The machinations of collectivist/totalitarians. The author didn't even mention wealth-draining, asset-robbing Socialist Health Care.
I’ve had a hunch this would happen for years.
They’ll claim that it is “just too expensive.”
20%, I’d cut it by 50%, to start.
Happens every time millions of people have nothing left to lose. It's just History.
The government is not proposing to confiscate your IRA/401(k).
This proposal is about providing the account holder the OPTION to convert it into a lifetime annuity. Some 401(k) administrators already offer this option, but it is not required.
There is also a proposal to include an estimate of the lifetime monthly income that your current account balance would provide, if you were to retire at that moment and in the future at the normal retirement age. This is intended to give people the ability to figure out where they stand, and whether they need to save more/less.
There are many annuity options, including a fixed term, lifetime, and even lifetime with a guaranteed term. The last one might be something like: lifetime, but guaranteed for 20 years to your heirs if you die within 20 years.
Would everyone please stop hyperventilating over this? This is nothing but a blogger trying to get you stirred up and send more people to view his blog.
Well, is about two years since I stopped this ‘easy candy’ for the scum bags.
Remember Argentina circa 2000:
I seriously doubt it will add very many to the number who are aware and alarmed about what is happening. Most don’t have anywhere close to enough to get them by and think this would be a bailout.
If you’ve spend decades saving and planning for a “comfortable” retirement and do not have it invested in cash flow producing assets or maybe precious metals... kiss your retirement good-by... no way to compensate for the inflation that is coming.
BOHICA almost all of us are screwed with no way to recover.
I wonder what happened to the Fourth Amendment. I know since Kelo things have gone a bit haywire, but to actually allow the govt. to seize private property for their own use, that is going a bit far. I think if they are allowed to do this, we need to scrub the filth out of every piece of the govt because the founding Fathers would never recognize this country if they were able to see it again.
Sounds about right.
That was my first thought.