“Keep you 401! Live in your car!”
I doubt people can understand what you wrote, so I’ll help a bit.
The US debt is GIGANTIC. There is no way that we will ever make progress paying it down. We have half of this country that are pure takers (welfare and everything related), and we even have half of us FReepers as almost-pure takers (i.e., “don’t you dare touch my Social Security”).
So our deficits continue, our debt is TOTALLY unmanageable, but there remains a HUGE pot of gold in retirement accounts - enough to cover the ENTIRE national debt, and them some (probably).
So the feds know this, and they know that they MUST get their hands on the money (as opposed to telling FReepers that the country is really, really, broke). So they TAKE the money and replace it with an annuity (i.e., a monthly payout, like Social Security). That will work for another 5 to 10 years (at which most can retire), but after that, we’re STILL broke and spending like mad, and have no more pots of gold - and then we collapse, and INFLATION finally sets in, and all our money is worth, maybe 25 cents on the dollar (at best, 10 cents in other countries that have been through this) - and the idea of buying a plasma next year goes away - and the dream will be affording some meat so our kids don’t look quite as gaunt...
The best thing you can do now is simplify your life as much as possible, become as self sufficient as you can. Shop second hand via Craig's List and garage sales when prudent. And understand that when they sold you that 401k and told you it was going to be comparable to a traditional company pension, they lied to you.
Before the election we had our 401ks positioned aggressively, heavy in stocks. Now we are 100% tax advantage municipal bonds (State Farm calls it TABs). Was it a smart move? I have no idea. I'm just hoping it makes enough to barely keep up with inflation while offering some small protection from an inevitable catastrophic stock market correction.
But honestly, the future of all 401ks look pretty bleak. I don't know about you, but I was told my money would double every ten years. What a freaking joke. I would have done infinitely better if I had invested a monthly sum into buying a little silver or gold.
Will Obama reach out his evil greedy fingers and scoop up all our 401ks? Not openly. But he may cause the biggest stock market crash in our lifetime. And just when people are the most destroyed, he will step in and offer his hand, like God reaching down to Adam. He will declare that in order to protect your retirement accounts from this kind of disaster ever happening again... all 401ks will be required to contain a high percentage of Government Bonds. And people will THANK him for it. And just like that, our retirement is yet another tool of government control over our lives.
Ah! I get so depressed when I think to much about it!
But if you have any further advice I'd certainly be interested. I try to stay prepared and informed, but honestly most of the time I feel like we are all being drug along helplessly.
I did learn one single positive thing about this financial disaster. We plan on stying in our home long long term. And we have stopped sending extra payments. We no longer want to pay the note early. At least when inflation destroys the value of our savings, the same number of dollar bills will still pay a house note.
Look! I wrote a book! I sure don't blame you if you decide not to read this. :p