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 Department’s Employee Benefits Security Administration.
I don’t 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 individual’s retirement account would be converted into an annuity. Once the individual is deceased, the individual’s heirs would not inherit anything (similar to what happens now with Social Security “accounts”).
EXCERPT
http://news.coinupdate.com/us-departments-of-labor-and-treasury-schedule-hearing-on-confiscation-of-private-retirement-accounts-0431/
The Beast will do whatever it takes to save itself.
Saw this coming a while back.
Sucks for uncle sham that I’m just a dirt poor nobody with nothing for him to steal.
The Author of the Article is Patrick A. Heller the owner of Liberty Coin Service.
What possible ulterior motive could such a person have in perpetuating Fear concerning IRA’s and 401k’s?
People may be motivated to Closeout their accounts and take the Tax hit as well as pay the penalty in order to convert their Funds into Hard Assets. (Gold or Silver)
This is not to say that confiscation could not occur.
Argentina has done it.
There are other and less painful means to resolve the US Debt.
Cut Spending. Zero out the Budgets of the Alphabet Agencies.
Repeal Obamacare. Reform Entitlement spending.
This has been coming for while. You didn’t really think they were going to let all that money just sit there, did you?
>> WTF
And it’s not like they plan to provide better investment strategies. They plan to burn through that cash.
>> I hate this administration with a passion, they are pushing people over the edge.
Move the edge.
There are a few bloggers and a Federal Register entry that show GRAs are indeed what is planned. Worked in Argentina....
http://ppjg.wordpress.com/2010/08/30/are-guaranteed-requirement-accounts-in-your-best-interest/
“Currently the concept is proposed as an Automatic IRA, (aka GRAs) we hide the “Opt Out” part in pages and pages of legislation forcing Congress to pass the bill to find out what is in it, and then give the option of investing in “R” Bonds which of course some blue ribbon panel/commission/oversight committee could appropriately administer after they have been created, I just betcha’ it could be pulled off. In fact, if we offer employers no fiduciary liability if:
they use a provider that is on a list of approved providers or uses R-Bonds.”
This is a lock and load issue for me. If they want to know if Grandpa Vet can still fight..then just try and touch my 401k.
We should be going just the opposite way. We should be replacing Social Security with individually owned and controlled accounts so that no politician can steal them.
Every citizen should have their own account..and taxes should be used to support who are truly in need. I have lived in countries with this system and it works. Even working people can end up with their own good retirement accounts. Now, all many people have is IOU’s from the Govt.
LOLYou don't really BELIEVE that this "option" will soon then become "mandatory", do you?
Sorta like the Social Security Trust Fund that became the pile of IOU's....
Stopped reading after I read this: “...Confiscation of Private Retirement Accounts”... =.=
I don’t want a annuity..I want to invest my own money...win loose or draw.
So they start out with the option and then later change the law to make 104K contributions taxable unless you join the new program. Look at how Social Security evolved.
Nothing the government does is for the producers. It is following the old Roman model of bread & circuses... until the bread runs out. The government would never outright confiscate funds. That would be too blatant... but they need that money to buy the next election. Pay off this or that special interest group. So, what could be better than to offer an option.. at first. Skim a little here. Chisel a little there. Next thing you now you've got another FreddieMac or FannieMae. The government only knows how to turn gold into lead.
When that happens, you can scream all you want.
Right now, the government is not proposing to do anything more than make it easier for you to buy an annuity with your 401(k) or IRA balance.
You can do it right now, with only a bit of effort. But, only a small percentage of 401(k) and IRA investors are aware of that option.
Sure it will be voluntary, the same way when Social Security was passed. The people were told it was voluntary.
Then, you can continue exactly as you planned. What the government is proposing that 401(k) administrators offer the option as an alternative to cashing out or rolling over to an IRA.
The list, ping
Let me know if you would like to be on or off the ping list
How, and through whom?
Ping.
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