For now, the money gamblers are collecting a few more Billion from the last of the productive workers who are throwing huge percentages of their salaries into IRAs, 401Ks, and investments.
Then they will crash the video game.
Posted on 12/17/2015 1:48:41 PM PST by QT3.14
Tony James and Teresa Ghilarducci are unlikely allies. He is president of Blackstone, the giant private equity firm; she’s a labor economist who has long advocated replacing 401(k)’s with a universal, federally managed saving plan.But the two have teamed up to push what they are calling Guaranteed Retirement Accounts, a government-sponsored plan that would require participation and contributions from any employer without its own 401(k). They both view the 401(k) defined contribution retirement system as a faulty experiment that covers too few workers, generates inadequate savings and replaces too little income in retirement.
(Excerpt) Read more at nytimes.com ...
Exactly my thought.
For now, the money gamblers are collecting a few more Billion from the last of the productive workers who are throwing huge percentages of their salaries into IRAs, 401Ks, and investments.
Then they will crash the video game.
And put in a lockbox?
Mandated government-run savings accounts now, and two years or so down the road once everyone has exhausted their waivers and had more than enough time to roll over from 401ks, IRAs, Roths etc, they’ll “mandate” that all these GRAs be converted to government bonds “to ensure maximum stability”. A year or so after that, once the conversion is finished, voila: the government has stolen the entire accumulated wealth of the Middle Class for a doomed-to-failure stealth bail-in of itself.
““I think we can sell it because it’s not a tax,†he said. “The G.O.P. does like the idea of people taking responsibility for themselves and not relying on the government.—
What a steaming load of falsity!
“With the Feds rate hike yesterday, you could almost read the script of corruption. The central banks were not only told of the time and day beforehand, they profited immensely during the news release. Profit. Greed. That is all they understand.”
Plus the Congresscritters who unlike the citizens are allowed to trade on insider information. How many of our elected representatives were given special trading deals on the interest rate increase yesterday by Wall Street investment firms? Enough “conservatives” to pass the omnibus spending bill. I bet there are some big dinners tonight on K Street washed down with some expensive craft bourbons and $300 per bottle French wines.
The word “Mandatory” clarifies that this is theft.
And I'll bet they especially dislike the fact that workers have a choice of funds in which they can invest and the ability to move them into a self-directed IRA at age 59 1/2 where they can cut off the revenue stream of fees to Wall Street for "managing" their investments.
I did exactly that when I found out my 401(K) was skimming fees from liquid MONEY MARKET ACCOUNTS and giving me negative returns. Hell, I can put my own damn money into a local bank which pays a whopping 1% on savings with NO DAMN FEES.
I'm guessing Tony and Theresa won't touch your savings. They will partner with the government who will do it for them.
I want to go the opposite way. Return to me my FICA contributions so that I can invest it in my own retirement funds and purchase my own health insurance in old age.
401Ks or even non-tax deferred mutual funds & savings work fine IF people will use them and save. The biggest problem is that many people won’t save 10-20% or more of their income. But each person should be allowed the freedom to succeed or fail.
Sixteen or seventeen trillion in private savings is too much for the federal government, academics, and Wall Street investment firms to resist playing with.
Over time the money will be taken:
Step #1 is the conversion of 401K, IRA, and other savings plans to government accounts. You’ll have your own account with your own money. The only difference between the new accounts and the personal accounts you once controlled is a “guaranteed” return.
Step #2 is to limit withdrawals to an approved schedule. Of course this is for your own benefit to make sure the money lasts your lifetime.
Step #3 will be means testing of traditional social security. The government will look at your total savings. Those who have excess savings will not receive traditional social security payments. After all, it isn’t fair for the government defined “wealthy” to benefit from social security.
Step #4. Government appropriation of retirement accounts at the owner’s death. Just like social security benefits end at death, even if there is residual money in the savings account.
Step #5. Roll social security and individual accounts together. Means test all benefits.
Guaranteed retirement accounts funded by mandatory contributions by employers and workers! Great idea!
Wait.
Don’t we already have that? It’s called social,security.
And put in a lockbox?
*******************************
A lockbox ultimately filled ONLY with government IOUs. The ‘RATS (who have been putting up trial balloons for this plan for years now) would view these accounts as another source of OTHER PEOPLE’S MONEY that could be spent on their cronies, special interests and voting blocs.
And we can get guys like Bernie madoff , terry McCauliffe and Jon Corzine to manage it for guaranteed growth
Like Social Security only this one has a positive balance.
Wait, the government is involved? Never mind.
Wall Street crony capitalists
All professional athletes who sign a million dollar contract should be made to put the first million in the S & P 500 until age 59. Then they can mandate withdrawals equal to life expectancy. If they end up broke as they often do they can drive a bus.
Psst. I have this fund manager called Uncle Sam.... He SWEARS he’ll get you a guaranteed annual return of 8% for the next 50 years!
I would be OK with the Guaranteed Retirement Accounts if it was voluntary. But if it’s compulsory, it’ll become just another mess that the government borrows from to conceal deficit spending.
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