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Personal Retirement Accounts Are Great…but only if You Can Stop Future Politicians from Confiscating
Townhall.com ^ | September 9, 2013 | Daniel J. Mitchell

Posted on 09/09/2013 7:46:21 AM PDT by Kaslin

Edited on 09/09/2013 9:44:52 AM PDT by Admin Moderator. [history]

Most Western nations have huge long-run fiscal problems because of unfavorable demographics and misguided entitlement programs.

That’s the bad news.

But good news in the short run doesn’t mean good news in the long run if greedy politicians decide to loot the wealth accumulated in personal retirement accounts.


(Excerpt) Read more at finance.townhall.com ...


TOPICS: Business/Economy; Culture/Society; Editorial
KEYWORDS:
the rest of the title is: but only if You Can Stop Future Politicians from Confiscating the Accumulated Wealth
1 posted on 09/09/2013 7:46:21 AM PDT by Kaslin
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To: Kaslin

They are coming for the pensions.


2 posted on 09/09/2013 7:48:25 AM PDT by VRW Conspirator (Producing Talk Show Prep since 1998.)
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To: VRW Conspirator

I’ve know this ever since the Clinton days pre-1994.


3 posted on 09/09/2013 7:49:24 AM PDT by Gaffer
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To: Kaslin

Bring back American manufacturing.

From overseas.

Chinese factories, only benefit Chinese workers.

Bring foreign manufacturing jobs back to America.

Now.


4 posted on 09/09/2013 7:51:13 AM PDT by Cringing Negativism Network
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To: VRW Conspirator
Poland Confiscates Half Of Private Pension Funds To "Cut" Sovereign Debt Load
5 posted on 09/09/2013 7:51:43 AM PDT by CMB_polarization
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To: VRW Conspirator
They are coming for the pensions.

Barny Frank was after our IRAs. The intent was to take them away from us and put them into social insecurity.

But the public got wind of this, extreme environmentalism, oppressive health and other nasty regulatory efforts and gave Obama a shellacking (as he described it) in the US House of Representatives.

If we let the Progressive/Liberals have the House again we will certainly loose our IRAs and a whole lot more.

6 posted on 09/09/2013 7:54:39 AM PDT by sr4402
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To: Kaslin

They have been talking about going after the 401K’s for years...

Anyone think they wont?


7 posted on 09/09/2013 7:57:34 AM PDT by Mr. K (Lies, Damned Lies, Statistics, and then Democrat Talking Points.)
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To: Kaslin

This is on Obama’s agenda—including the contents of your safety deposit box.

The only secure savings are gold and silver coins for which you paid cash so there is no paper trail.


8 posted on 09/09/2013 8:01:15 AM PDT by Arthur McGowan (If you're FOR sticking scissors in a female's neck and sucking out her brains, you are PRO-WOMAN!)
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To: stephenjohnbanker; ding_dong_daddy_from_dumas; Gilbo_3; Impy; NFHale; BillyBoy; fieldmarshaldj; ...
RE :”Here’s a video that explains why a privatized or “personalized” Social Security system is the only way of dealing with the current system’s bankruptcy without screwing younger workers.”

Younger workers must get screwed anyway because retirees demand their checks and both party pols will make sure they get thembeing terrified of their votes. That is why they make believe there is a real trust fund when its just funded by national borrowing, still screwing them.

So the younger workers will either pay it with payroll taxes or addition to national debt, which was Bush proposal. They do both now.

Alternatively Ryan's Medicare brainstorm proposed passing cuts that wouldnt (any of them) go into effect for 10 years, which still screws them. They pay the bills for 10 years, the remainder from borrowing, then when they retire they are told 'out of luck sorry' . Still a scam that tries to protect those who pass it (except it was too obvious.)

9 posted on 09/09/2013 8:02:11 AM PDT by sickoflibs (To GOP : Any path to US Citizenship IS putting them ahead in line. Stop lying about your position.)
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To: sr4402

They are coming for the pensions.
Barny Frank was after our IRAs. The intent was to take them away from us and put them into social insecurity.

But the public got wind of this, extreme environmentalism, oppressive health and other nasty regulatory efforts and gave Obama a shellacking (as he described it) in the US House of Representatives.

If we let the Progressive/Liberals have the House again we will certainly loose our IRAs and a whole lot more.

_______________________-

This is why even a RINO like Senator McConnell in KY is better than a democrat....Say what you will about the Republican Lite wing of the party, at least they aren’t dumb/corrupt enough to vote for something like this.

As I have said here before to Freepers who say there is no difference between a Mitt Romney or Barack Obama — oh, yes there is...Staying at home on election day is as bad as voting for a democrat. As William F. Buckley used to say, vote for the most conservative candidate on the ballot...


10 posted on 09/09/2013 8:03:05 AM PDT by Tulane
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To: Mr. K
Once SS crashes, and enough people are demanding their check, you will see it.

And most here will cheer it as it pays for their “promised” benefits.

11 posted on 09/09/2013 8:03:59 AM PDT by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: Kaslin
I've read articles like this one about Poland's move, and I'm still confused.

Is this a outright seizure or not? Did the government simply take the bonds and offer nothing at all in return?

Or did the government take the bonds, but the original owners will still be paid the interest on the bonds?

12 posted on 09/09/2013 8:04:26 AM PDT by Leaning Right (Why am I holding this lantern? I am looking for the next Reagan.)
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To: redgolum

The real question is, how will the congress protect their own assets, as they won’t stand by and let their stuff get seized anymore than them adopting obamacare.


13 posted on 09/09/2013 8:07:45 AM PDT by DonaldC (A nation cannot stand in the absence of religious principle.)
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To: Tulane
As I have said here before to Freepers who say there is no difference between a Mitt Romney or Barack Obama — oh, yes there is...Staying at home on election day is as bad as voting for a democrat. As William F. Buckley used to say, vote for the most conservative candidate on the ballot...

A surefire recipe to never again have a conservative candidate.

Perhaps it is fitting that the appeal to the R base is a cry to have no minimum standards for acceptability of a candidate.

14 posted on 09/09/2013 8:09:23 AM PDT by MortMan (Disarming the sheep only emboldens the wolves.)
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To: VRW Conspirator

Yep, I’m again seeing the rash of articles about how 401Ks are not fair to those that don’t save, and how unsafe they are because of possible stock market losses. They put the articles out about once a year.


15 posted on 09/09/2013 8:10:30 AM PDT by Rusty0604
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To: sickoflibs

They still believe that there is a trust fund even though during the last debt limit debate Obama got in front of the people and threatened not sending out Social Security checks.


16 posted on 09/09/2013 8:13:35 AM PDT by Rusty0604
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To: Kaslin

If politicians steal your money, shoot the politicians.


17 posted on 09/09/2013 8:13:58 AM PDT by Uncle Miltie (Are Marines required to salute Al Qaeda yet?)
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To: Cringing Negativism Network

Because even toenail fungus is cured by:

“Bring back American manufacturing.

From overseas.

Chinese factories, only benefit Chinese workers.

Bring foreign manufacturing jobs back to America.

Now.”


18 posted on 09/09/2013 8:15:08 AM PDT by Uncle Miltie (Are Marines required to salute Al Qaeda yet?)
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To: Tulane

The Honorable Hilda L. Solis
Secretary
U.S. Department of Labor
200 Constitution Avenue, NW
Washington, DC 20210

The Honorable Timothy Geithner
Secretary
U.S. Department of the Treasury
1500 Pennsylvania Avenue, NW
Washington, DC 20210

Dear Secretaries Solis and Geithner:

As members of the Republican Savings Solutions Group, we write today to express our strong opposition to any proposal to eliminate or federalize private-sector defined contribution pension plans, such as 401(k)s, or impose burdensome new requirements upon the businesses, large and small, who choose to offer these plans to their employees.

In the Annual Report of the White House Task Force on the Middle Class, Vice President Biden discussed at length the creation of so-called “Guaranteed Retirement Accounts, (GRAs)” which would provide for protection from “inflation and market risk” and potentially “guarantee a specified real return above the rate of inflation” — presumably at taxpayer expense. In the Report, the Vice President recommended “further study of these issues.”

The Vice President’s comments are troubling, insofar as they come on the heels of testimony before Congress from supporters of GRAs proposing to eliminate the favorable tax treatment currently afforded to 401(k) plans, and instead use those dollars to fund government-invested GRAs into which all employees would be required to contribute a portion of their salary — again, with a government subsidy. These advocates would, essentially, dismantle the present private-sector 401(k) system, replacing it instead with a government-run investment plan, the size and scope of which remain to be seen. This despite data showing that 90 percent of households have a favorable opinion of the existing 401(k)/IRA system.

In light of these facts, we write today to express our opposition in the strongest terms to any effort to “nationalize” the private 401(k) system, or any proposal that would dismantle or disfavor the private 401(k) system in favor of a government-run retirement security regime.

Similarly, and more recently, the Departments of Labor and Treasury have jointly issued a “Request for Information” regarding the “annuitization” of 401(k) plans through “Lifetime Income Options.” While we appreciate the Departments’ seeking guidance and information from all parties and stakeholders in advance of regulatory activity, we strongly urge that the Departments not proceed with any regulation in this area before they have carefully and thoroughly considered all of the information received.

More specifically, we urge that the Departments take no action to mandate that plan sponsors — often, small businesses — include a “lifetime income” or “annuitization” option if they choose to offer a 401(k) plan to their employees, or that beneficiaries take some or all of their retirement savings in such an option. Data shows that 70 percent of Americans oppose the concept of a mandated annuity or government payout of their 401(k) plan. On a more fundamental level, Congress should not be in the business of choosing “winners” and “losers” among retirement security stakeholders. Instead, we urge the Departments to make it easier for employers to include retirement income solutions in their savings plans and to help workers learn more about the value of their retirement savings as a source of retirement income. Finally, to the extent new mandates and bureaucratic red tape from Washington push small employers out of the business of offering these plans to their employees, we would submit such an effort weakens, rather than strengthens retirement security.

We appreciate your consideration of our views in these important matters and stand ready to work with you and the Administration to promote secure and adequate retirement savings for all Americans.

Sincerely,

House Republican Leader John Boehner (R-OH)
Rep. John Kline (R-MN)
Rep. Dave Camp (R-MI)
Rep. Sam Johnson (R-TX)
Rep. Dean Heller (R-NV)
Rep. Brett Guthrie (R-KY)
Rep. Michele Bachmann (R-MN)
Rep. Pat Tiberi (R-OH)
Rep. Bob Latta (R-OH)
Rep. Erik Paulsen (R-MN)
Rep. Lynn Jenkins (R-KS)
Rep. Ed Royce (R-CA)
Rep. Buck McKeon (R-CA)

(in 2010)


19 posted on 09/09/2013 8:16:46 AM PDT by Rusty0604
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To: Mr. K

>>They have been talking about going after the 401K’s for years...

Anyone think they wont?<<

As long as we are armed they won’t.


20 posted on 09/09/2013 8:30:49 AM PDT by B4Ranch (AGENDA: Grinding America Down ----- http://vimeo.com/63749370)
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To: Rusty0604
RE :”They still believe that there is a trust fund even though during the last debt limit debate Obama got in front of the people and threatened not sending out Social Security checks.”

Yep, I kept pointing that out too as did just a few in congress. It was a perfect outting of the massive lie and most missed it or looked the other way.

What I have found is that young adults here who are educated and voted for Obama ( which is most of them, clueless) socially liberal, they dont even know about the trust fund, or that SS and medicare are running operational deficits. They dont even understand the payroll taxes beyond what is on their pay-stub.
When I try to explain it they just roll their eyes and say ‘I dont expect to get those anyway so I dont care’

I have yet to meet one who knows anything about it. They just dont care.

Of course when time comes they will think completely differently.

21 posted on 09/09/2013 8:34:51 AM PDT by sickoflibs (To GOP : Any path to US Citizenship IS putting them ahead in line. Stop lying about your position.)
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To: DonaldC

>>The real question is, how will the congress protect their own assets, as they won’t stand by and let their stuff get seized anymore than them adopting obamacare.

Members of Congress will be paying Estate taxes if they attempt to take our retirement savings.


22 posted on 09/09/2013 8:35:41 AM PDT by B4Ranch (AGENDA: Grinding America Down ----- http://vimeo.com/63749370)
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To: Tulane
And Buckley is an idiot, IMO.

Stop voting for RINO’s. Let the dems win and let them take the blame for running the economy/country into the ground. It's the only way the low information voters will understand who exactly is screwing them over.

Putting a RINO in office allows the left to point at Republicans as the problem or allows them to share the blame.

Romney would have simply prolonged the inevitable, and I am of the opinion the sooner it burns, the sooner it's rebuilt.

23 posted on 09/09/2013 8:49:55 AM PDT by Pox (Good Night. I expect more respect tomorrow.)
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To: sickoflibs

Younger workers must get screwed anyway because retirees demand their checks and both party pols will make sure they get thembeing terrified of their votes. That is why they make believe there is a real trust fund when its just funded by national borrowing, still screwing them.


The simple solution is to float the retirement age to maintain annual break-even solvency. Some generations might need to work longer (certainly longer than the artificial and unsustainable early retirement currently offered), but no generation gets ruined, and the nation doesn’t get ruined.

Same for medicare.


24 posted on 09/09/2013 9:43:59 AM PDT by Founding Nephew
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To: B4Ranch
As long as we are armed they won’t.

Sure they will. It's theirs. They gave you a tax deferral on the money - therefore (in their thinking), the money is not actually yours until you pay all the taxes on it. And it's just simply unfair for greedy individuals to try to limit the government's use of its own money when there are so many human needs going unmet.

So they'll take it and they'll give you a voucher or a bond or a government investment fund or something with the same nominal asset value that might be valuable later when you are ready to retire - and they will use your money now. And there will be hardly a squawk about it, because no actual 'theft' will have occurred - just a slight change in the names of the securities listed on John Q. Public's statement. All the numbers in the computer will still be there, all the rosy projections will still appear on the propaganda pages, and Boehner and the GOP won't complain very loudly, so everybody will think everything is just fine.

So guns will not actually enter into it, this time. It's just an accounting change, after all.

25 posted on 09/09/2013 10:07:26 AM PDT by Mr. Jeeves (CTRL-GALT-DELETE)
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To: PatriotGirl827

bookmark


26 posted on 09/09/2013 10:09:53 AM PDT by PatriotGirl827 (O Mary, conceived without sin, pray for us who have recourse to thee)
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To: Kaslin

This is another “I’m done f*cking around” line.

Cross it, and I’ll start making people bleed for it.

Enough is enough is enough is enough...


27 posted on 09/09/2013 10:18:05 AM PDT by Dead Corpse (I will not comply.)
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To: Founding Nephew
RE :”The simple solution is to float the retirement age to maintain annual break-even solvency. Some generations might need to work longer (certainly longer than the artificial and unsustainable early retirement currently offered), but no generation gets ruined, and the nation doesn’t get ruined”

Voters will support much higher taxes than we have now before they support that, it shows up in every poll. That is why the GOP always proposes 'spend like hell now then cut future people's benies or increase age much later 'like the Ryan plan.

And there are other problems with that simple solution:
1) We dont have an economy healthy enough to employ so many people over 65, that age group is not exactly prime labor and more and more jobs are replaced by machines, or imports and some day amnesty.

2) So will be on Obama-care instead of medicare if the age in increased (medicaid or subsities)

3) Working till ~ 70 might be great for some jobs like talking heads on Sunday shows, those are great jobs, but 70 year olds on feet all day bagging groceries or climbing up roofs is not going to sell.

there is no ‘simple solution’

28 posted on 09/09/2013 10:31:06 AM PDT by sickoflibs (To GOP : Any path to US Citizenship IS putting them ahead in line. Stop lying about your position.)
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To: Mr. Jeeves

You may be right but I hope not. It’s time we did a $h!thouse cleaning in this country.


29 posted on 09/09/2013 10:32:58 AM PDT by B4Ranch (AGENDA: Grinding America Down ----- http://vimeo.com/63749370)
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To: Kaslin
agh. Can't STAND this headline. Why "future politicians"?--that means politicians yet to be elected. What this headline should say is "only if you can stop politicians from future confiscations of accumulated wealth" -- "future" should modify "confiscation" and not "politicians"--

Pelosi would confiscate this wealth at earliest opportunity, not some future replacement for this pernicious hag.

30 posted on 09/09/2013 11:48:39 AM PDT by Mamzelle
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To: Tulane

oh, yes there is...Staying at home on election day is as bad as voting for a democrat.

...and if any think otherwise just observe we are paying the price for this crazy thinking as we speak.

“not a dimes worth of difference between the two”, heard that one enough?


31 posted on 09/25/2013 5:56:12 AM PDT by wita
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To: Mamzelle

Folks oughta check out your 401k options TODAY.

See if there is a true “cash” account anymore,
or if it is in gov’t bonds.

This is a tactic they are ALREADY using to get their hands on your retirement money.

You can’t put it in “cash”, and the next “safest” option is a gov’t bond, which means you’re loaning it to the gov’t.


32 posted on 09/25/2013 5:59:04 AM PDT by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: Cringing Negativism Network
Bring back American manufacturing. From overseas. Chinese factories, only benefit Chinese workers. Bring foreign manufacturing jobs back to America. Now.

Problem is where I live you cannot find qualified workers anymore. You would be hard pressed to find folks who can just show up to work, let alone put in an eight hour day. And it probably will not improve.

Some around here say that is the reason that Boeing did not want to open a manufacturing facility in South Carolina. Not enough average IQ workers in the area. Official reason was because it was a right to work state. Boeing (unions) chose Washington state. My guess is that is was a lot of both.

33 posted on 09/25/2013 6:09:40 AM PDT by CodeJockey (Christian, Freeper, Tea Party Member, Bitter Clinger, Creepy White Cracker)
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To: CodeJockey

I really think you are not giving American workers the common courtesy of a respectful reply.

China is our major manufacturing competitor.

China does not allow American goods, to compete in China, yet competes freely in America.

That is currently the largest problem.


34 posted on 09/25/2013 6:43:17 AM PDT by Cringing Negativism Network
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