Government Sets Its Sights - Redistribute the Wealth of America’s Older Citizens”

SHTF Plan ^ | 11-20-2012 | Mac Slavo

[blam]

Government Sets Its Sights on Private Retirement Accounts: “Giant Effort to Redistribute the Wealth of America’s Older Citizens”

Mac Slavo
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 couldn’t 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 Administration’s effort to nationalize the nation’s pension system and to eliminate private retirement accounts including IRA’s and 401k plans, NSC is warning.

The hearing, held in the Labor Department’s 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 America’s 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 America’s 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 Won’t Tell You.

Did you know, for example, that 401(k) plans aren’t 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 you’re going to need; all of those math formulas and expert calculations were all wrong. Additionally, there are so many hidden fees that you’re 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 don’t 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.

It’s 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 they’ll 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 you’re 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 don’t 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 what’s in it, and it’ll be a done deal.

The government of this country is coming for everything they can get their hands on.

[andy58-in-nh]

I will consider any movement on the part of the Federal government to seize privately-held American retirement assets as a casus belli.

[LibLieSlayer]

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.

LLS

[doorgunner69]

The problem is selecting and finding targets, not the will to do it.

[traditional1]

If you had no idea this would be coming, you may as well hve been VOTING for Democrats.

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????

[LibLieSlayer]

NO ONE has felt the pain of Zerocare yet... but they will. Stealing money from one’s account is pain that is instant and angering.

LLS

[MrB]

“How long do you have to wait to re-hire me if you fire me?”

[MrB]

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)

[Bloody Sam Roberts]

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.

[DownInFlames]

When this happens, you will be powerless. It’s all electronic and will happen overnight. Take the 20% hit. 80% is more than zero.

[TheRhinelander]

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.

[MrB]

If you want a scary read,

read “One Hour Meltdown”.
http://poorrichards-blog.blogspot.com/2012/11/the-one-hour-meltdown.html

If the banks go “holiday”, all electronic transactions are shut off INSTANTLY. Without cash, “no one can buy or sell”.

And those who cause the whole mess will have conveniently disappeared before anyone notices.

[roadcat]

You save all your life and put money in government mandated “lock box” only to have government thieves take away your and your children's future also.

I had a discussion with a liberal friend a few days ago. She's in her late fifties and only now is looking into starting a retirement plan, with about six working years left. I tried to explain that my wife and I started our retirement planning in our twenties, and slowly built our nestegg over decades. Then I tried to explain that a 401K with only six years put in is not going to go very far, and that when she cashes in, the government takes a tax bite. She blames everyone else for her situation - her bosses, her co-workers, etc., for not telling her these things long ago. Yet I know she probably was told but just does not listen, and did not take care of her own needs. Typical liberal.

She may have the last laugh if Obama gets his way and takes my retirement money to redistribute to her, when I intended it to help my children and grandchildren (not to mention providing for my care in later years). I'm at my wit's end trying to figure out what to do to protect my nest-egg from government thieves.

[Mouton]

As McCarthy used to say: I have a list of communists.

I am over the penalty age so as soon as this looks like it is a for sure thing, I will just withdraw the funds and put them in tax accounts or other investments. Aside from the income tax on the taxable IRAs, they are not going to get one dime more and none of the principal.

In our lifetime, our nation has turned from one which was ethical and equitable into one that is predatory and immoral. I don’t know how else to put it. Perhaps I should have gone to Canada in 68 as some of those running the place obviously did.

[PMAS]

*

[chrisser]

“How long do you have to wait to re-hire me if you fire me?”

I actually talked to the finance guy about this - he's done it at other companies.

Basically, have to be fired/laid off, then apply for and receive unemployment (and, of course, there's then a cost to the company, both in paperwork and unemployment costs). That essentially verifies you're out of service. Then you pull the money out, and the company (presumably) rehires you.

Of course, you can't have anything in writing to insure the company will hire you back, so there's definitely a degree of trust involved. Plus, since it's the company who created the 401(k) with the restrictions, there's not a whole lot of incentive for them to go through all this in order to get around their own policy.

[drypowder]

FYI: The great Bill Clinton the impeached was the first democrap to suggest that the federal government should have access to America’s private retirement accounts because the government will utilize that money more effectively.

[98ZJ USMC]

That might be their idea, at least for a few high-profile examples to scare the rest of the sheep.

Yep. That's the idea. If you're talking about armed resistance, you have to start looking at a loose confederation of like minded people. Difficult, to not be infiltrated. You can't do this alone. They will come after you with a great deal of firepower. Riots and armed violence in the cities does not concern me in the slightest. In fact, I welcome it. To do this you are going to need local law enforcement on your side and sympathetic acquaintances in the National Guard. The best case scenario is succession. Pull your money in cash or bank check and move to one of the seceding states. Of course, you'll probably lose your home.

[jagusafr]

Because it worked so well for Argentina, don’cha know...

Black market’s loving this!

[Jude in WV]

What most people don’t realize is they have already been doing this under the radar.
The feds lowered the interest rate so low, then allowed banks into the the securities business. When old folks went to the bank and were disappointed with little or no earnings on their savings, they were deceived into “investing”.
They lost a lot of their savings while Nancy Pelosi gained 60 million over the last 4 years.
I was an accountant for over 30 years. I’ve been seeing this for over 20 years. I have told off local bankers when my clients were cheated.
In 1987, I took an advanced accounting course from a CPA. He said to keep our eyes open, it would not be long before the government and unions began to rob the pension plans.
This is not for the poor people. Poor and middle class folks barely get by....they do not invest.
Savvy investors are the only ones gaining from this corruption. The stock market is no more than an electronic casino. The average person doesn’t stand a chance there.

[SIDENET]

Let me clear.

For the record, I'm merely observing and commenting, and exercising my First Amendment rights as a concerned, and conservative American citizen. I'm not advocating any course of action whatsoever.

Respectfully,

SIDENET