Skip to comments.Government Sets Its Sights - Redistribute the Wealth of America’s Older Citizens”
Posted on 11/21/2012 10:37:47 AM PST by blam
Government Sets Its Sights on Private Retirement Accounts: Giant Effort to Redistribute the Wealth of Americas Older Citizens
November 20th, 2012
A new effort by the Obama administration, Congress, the Treasury Department and labor unions aims to fundamentally alter how Americans plan and save for retirement.
Warnings have been popping up over the last several years about the possibility of re-appropriating the $3.5 Trillion sitting in private retirement and spreading those funds around to Americans who are deemed less fortunate.
This couldnt possibly happen in America, right? At one time, most Americans also believed heath care mandates that force Americans at the barrel of a gun to surrender portions of their earnings into a universal system for all would never happen. Well, it did.
And now, those who would control and regulate every aspect of our lives are making a new push; one whose efforts will ultimately end in the seizure and redistribution the personal retirement savings of every American who has ever put money into a 401(k) or IRA.
This is no longer in the realm of conspiracy, but rather, public record.
A recent hearing sponsored by the Treasury and Labor Departments marked the beginning of the Obama Administrations effort to nationalize the nations pension system and to eliminate private retirement accounts including IRAs and 401k plans, NSC is warning.
The hearing, held in the Labor Departments main auditorium, was monitored by NSC staff and featured a line up of left-wing activists including one representative of the AFL-CIO who advocated for more government regulation over private retirement accounts and even the establishment of government-sponsored annuities that would take the place of 401k plans.
This hearing was set up to explore why Americans are not saving as much for their retirement as they could, explains National Seniors Council National Director Robert Crone, However, it is clear that this is the first step towards a government takeover. It feels just like the beginning of the debate over health care and we all know how that ended up.
A representative of the liberal Pension Rights Center, Rebecca Davis, testified that the government needs to get involved because 401k plans and IRAs are unfair to poor people. She demanded the Obama administration set up a government-sponsored program administered by the PBGC (the governments Pension Benefit Guarantee Corporation).
Such reforms would effectively end private retirement accounts in America, Crone warns.
These people want the government to require that ultimately all Americans buy these government annuities instead of saving or investing on their own. The Government could then take these trillions of dollars and redistribute it through this new national retirement system.
This effort ultimately is designed to grab the retirement nest eggs of Americas senior citizens. This new government annuity scheme, even if it is at first optional, will turn into a giant effort to redistribute the wealth of Americas older citizens, explains Crone. This scheme mirrors what I expect the President will try to do with Social Security. He wants to turn that program into a welfare program, too.
Via: National Seniors Council
With the re-election of President Obama, a majority Democrat Senate and powerful organization and lobbying from labor unions, we can fully expect legislation that will shift private accounts into the public coffers to become reality in the not too distant future.
In fact, the push to mold the perceptions surrounding this issue is already on, as highlighted in a recent Market Watch article which claims to explain the 10 Things 401(k) Plans Wont Tell You.
Did you know, for example, that 401(k) plans arent supposed to provide you with full retirement benefits, and that they were originally intended to be mere supplements to other plans, and that they only benefit the rich? Not only that, but according to the article, no one can really tell you how much money youre going to need; all of those math formulas and expert calculations were all wrong. Additionally, there are so many hidden fees that youre losing hundreds of thousands of dollars to Wall Street (most of us knew that one).
And all this time, the millions of Americans who contributed their money to these accounts over the last three decades were under the impression that their accounts would one day grow into a retirement nest egg from which retirees could spend their days in comfort and relaxation.
Nope. We had it all wrong. Private retirement accounts were never actually designed to ensure that you could retire! Only a government managed retirement plan can ensure that you will have the money you need when you turn 59 1/2. Only they will be able to ensure you dont pay excessive, hidden fees (even though they could have created legislation to require firms to overtly disclose this information int he first place). And, only the government can provide 100% full retirement coverage, not just supplemental funds. Oh, and they also know WHEN you should retire, currently 65 years of age.
Its on folks. They are going to hit Americans from all angles on this one.
First, the political hearings that will claim only the rich are benefiting from private retirement accounts.
Then theyll point out how stock market crashes and volatility put your money at risk. In fact, if we do have another market crash, look for this to be a key reverberation.
Then they put the spin machine into action, so that you think youre getting unbiased analysis and truth.
Then they open the guilt spigot and make those who have personal retirement savings wonder if they are being greedy, and those who dont have savings will direct their anger not just at the rich, but anyone who has put any money away.
Finally, they will pass a bill, which we have to pass first in order to know whats in it, and itll be a done deal.
The government of this country is coming for everything they can get their hands on.
I’ll burn my wealth, or bury it far in the sticks, before the state gets it’s hands on what I’ve saved...
Well, do they WANT a civil war? They’ll get one.
Ah the annuity! That’s what they will do. The average American will not understand what an annuity is.
The bastards will take the money and put it into annuities. They will tell the public that they will get a guaranteed income. What they won’t tell the public is that when they die, the government gets it and gives it to people who never worked but vote democrat.
Beautiful plan. And the sheep will line up to give their all to an all-powerful all-knowing and all-caring government, knowing that the government cares and will take care of them until the government-paid doctor puts the needle in.
Okay. Solutions? How can we get our money out of there (I’m 50)?
I don’t trust anything this government says.
Convert it to nickels, and dump them in the ocean. It will actually cost them nearly as much as they're attempting to steal.
Too bad Bill Ayers and 0 are friends...he might come in handy “cleaning out” the current administration...: )
Yea, We wont stand for that. That is pure grand theft.
Let your Congresscritter know that if any government official, employee or employeeto tries do this, there won’t be a safe place on this planet for them to hide.
Just let them try.
If you want to keep some of your precious metals in private vaults (your choice of US, UK or Switzerland) then I highly recommend BullionVault
Hope this is helpful.
(Full disclosure: I have about 36 Kg of Silver with BullionVault.)
We need to discuss.
You mean like what we did when the government took over the health care industry and will now tell us how much health we should have?
If the debt crisis goes as expected by many and the pukes in DC keep printing money, then the dollar will collapse and the money in 401Ks will be worth nothing.
Sadly. It’ll just be a few of us...
This county has no nads any more.
Taking peoples retirements will be met with a “ho hum”..
The smart ones (you and I) can see this coming and have adjusted how we are saving for retirement.
Those who are already well off like Michael Moore, George Soros won’t be affected by this but will ensure that you will work until you are ready to drop dead. I know people who were smart in saving money and retired like at 50 or 55. I forgone getting a bug McMansion and chose to live in a 1800 ft^2 house so I don’t have a mortgage and be able to save more money so I can drop out of the rat race much sooner than like 70 years old.
Voting or not voting has consequences !
Always with democrats, anyone who works smart or think for themselves always are targeted for ostracism and punishment where as those who aren’t well off might be left alone.
I’m 45. I don’t have a lot, but I converted all to what is essentially a cash fund just after the election. I don’t see a reason to have my retirement funds in the market any longer.
But I’m considering pulling it all out. Yes, the penalties and taxes are steep. But, we have some debt I can pay off, and the interest rates are higher than the likely future returns. And if they do decide to screw with 401(k)s, they’ll likely make any changes retroactive at least a year or two back to prevent/punish those who try to get out after the writing’s on the wall.
I hate to do it, but with the future uncertain as it is, I think, at minimum, I’d rather have no debt than a vulnerable nest egg, and even not considering that, I’d rather have cash (or precious metals) under the mattress than in a 401(k), IRA or bank even it if costs me in the short term.
For various reasons (mostly medical expenses), it might make sense to pull it all out this year for us rather than wait to see what happens.
I really can’t see our financial future getting better under this administration, but I could see it getting a heckuva lot worse.
That’s retroactive slavery.
I’ll fight to the death before they steal my retirement.
That’s retroactive slavery.
I’ll fight to the death before they steal my retirement.
The way things are going you may have to burn it to generate some heat to keep warm.
Of course, it will first be "demanded" by "the people" via the MSM after endless stories of "43 million without coverage".
That template has already worked wonders.
That’s when the shooting starts.
It’s almost time.
You and I are on the same page. I am prepared to take the ‘sting’ of closing the 401k and convert it to assets that can be better utilized for retirement. I will be danged if I let anyone get their hands on it.
Have you heard of structured settlement investments if so what do you think of them?
That might be their idea, at least for a few high-profile examples to scare the rest of the sheep.
If I were your age and felt like you do, I would invest it in a piece of cheap, foreclosed property at a sheriff’s sale, then collect rent. IF we survive economically, your investment will look pretty good when you’re 65.
Yeah, but it's not money, it's power that they're after.
I was just reading a little Claire last night.
The 16th Amendment was the actual institution of slavery.
Let's face it, if the government has first dibs on your paycheck, you are a sharecropper in your own nation.
Sounds about right.
I think that one of the ways to get our country back is to make it cool to bump heads with this administration like the hippies did in the 60’s. Young people seem to be driven by emotion. It’s time we (conservatives) capture that emotion and use it for good.
A little boom goes a long way.
There will be a market crash either naturally or manufactured. There will be media outrage to alarm citizens from the evils of The Wall Street. The Wall Street is run by the rich who gamble with and cheat people out of their life savings.
They will roll out select welfare queens to shout to the world to show the world how unfair it is for rich people to have money to save when she has to rely on government assistance to feed her fatherless children.
Why risk your nestegg on risky Wall Street schemes when you can invest in the good ole USA?
Initially, ALL companies will have to offer government approved investment vehicles. Eventually, that will be your only choice. You will be forced to move your money into these “funds” that are managed by a new Office of Retirement Affairs. You will be required, as will your employer, to contribute a minimum percentage to the plan.
Welfare will now include a retirement plan. The recipient will receive statements showing how much savings have been deposited and how much they have “earned.”
Anyone with a current IRA or old 401k can either cash it out and pay a prohibitally large penalty or convert their holdings to the new savings plans.
Welcome to the future.
You can get your money out. For a price. Usually at least 1/3 goes to penalties and taxes.
Simple warning will suffice here...here is a story to consider: Friend took a job as an auto repo guy. He pulled up to a car in the ghetto on his seizure list. Guy yelled out of second story window, put your hands on that car and that is where they are going to stay.
I do a lot of blustering but if anyone seizes any of my funds I put away for retirement, funds I worked for, they are going to die. Period.
I talked to our finance guy.
Our 401(k) is structured such that it is virtually impossible to take anything out while in service.
I’d have to quit or be fired in order to access it. Even hardships don’t count unless you can document you’ve tried other options and been turned down for other sources of financing.
So I’m basically stuck.
Government employees have to live amongst us... they may experience short life spans if they try to steal our life’s hard earned retirement funds.
The problem is selecting and finding targets, not the will to do it.
Labor Unions in the PUBLIC SECTOR know that the public (those who pay taxes) are getting VERY sick and tired of all the bloated payrolls, over-paid un-productive Union members, money-laundering of Dues to elect Democrats and get even MORE benefits, wages, perks, etc. APPROVED, and now are so under-funded that they can't count on future Pensions. To assure the Union Members and the Union Bosses even MORE money available, they basically will rob all Americans who have saved their money for their OWN Retirements, and put THEM on the Public Dole.
Now, they are whining because parasitic-inner-city-tribal members, Illegals (who soon will be granted Amnesty), and ALL Union Members can count on voting Democrat forever, because they will recieve Pensions (that's what they're calling them), which are just extended Welfare into their Senior years, while they saved NOTHING and contributed NOTHING to the "Pension" in the first place.
I guess they figure that Senior Citizens won't rebel with armed confrontation, and it's a "Go".
You wonder WHY the Government Departments have been stockpiling ammunition now????
“How long do you have to wait to re-hire me if you fire me?”
10% confiscation off the top,
and the entire withdrawal is taxed at your highest tax rate.
(note, they tax you on the 10% that they take)
I know for fact that hardship withdrawals are possible in mine. Not sure about complete withdrawal. I would rather use the contributions that go to my 401k to pay down other debt. I’m hoping it won’t be overly complicated.
When this happens, you will be powerless. It’s all electronic and will happen overnight. Take the 20% hit. 80% is more than zero.
Not convinced this will happen. It cannot happen by executive order and would have ti pass the House. That will not happen.
If it does I will withdraw my funds and take the hit.