Posted on 05/01/2013 10:39:14 AM PDT by SeekAndFind
How many times have you read financial-advice stories lecturing you to max-out on your IRA, save as much as you can in your 401(k), and even pay taxes now to change your regular IRA into a Roth IRA that will be tax-free until you die?
Well, be careful how much you save.
That's the message in President Obama's budget for fiscal 2014, which for the first time proposes to cap the amount Americans can save in these tax-sheltered investment vehicles. The White House explanation is that some people have accumulated "substantially more than is needed to fund reasonable levels of retirement saving." So Mr. Obama proposes to "limit an individual's total balance across tax-preferred accounts to an amount sufficient to finance an annuity of not more than $205,000 per year in retirement, or about $3 million for someone retiring in 2013."
Thus do our political betters now feel free to define for everyone what is "needed" for a "reasonable" retirement. Not to be impertinent, but does this White House definition include being able to afford summers at age 70 at Martha's Vineyard near the Obamas?
The feds may think $3 million is all you need after a lifetime of work, but that's roughly the value of a California police sergeant's pension if she works for 30 years, retires at age 50 and lives to normal life expectancy.
Out in the private economy, people generally have to work longer than that before they retire, and some of them do manage to save significant amounts. We're talking about people who work for decades and abstain from buying bigger houses or the new car so they can contribute the maximum to their 401(k)s or IRAs. The people who defer gratification and build a nest egg to avoid becoming a burden on their kids
(Excerpt) Read more at online.wsj.com ...
But there is a principal involved....yes?
From your photoshop to God’s eyes.
I live to see this day!
I stopped adding to retirement savings as soon as this chatter moved into the liberal mainstream, about ten years ago. Now that I’m retired, I am glad I didn’t put more money where they could find it so easily.
The next step is to mandate a small percentage to be invested in “safe” government securities to protect against a potential market collapse. Then they will up the percentage until most private retirement funds are heavy into government debt. The FED can’t finance $85 billion a month forever.
Might be time for a peaceful march on Washington. Perhaps called the French Revolution II Celebration. Might get the attention of some of these criminals.
And when the economy completely crashes it will be on all TSA, IRA and 401ks.
Cause you won the lottery of life and all.
They will come for it, soon. At all levels. They will sell it as, It’s unfair to those that have nothing that you saved and are gaining tax free intrest. This is prime pickings for the Redistribution crowd.
The master overlords.
The devs of reality.
The gods of Earth.
RE: The next step is to mandate a small percentage to be invested in “safe” government securities to protect against a potential market collapse. Then they will up the percentage until most private retirement funds are heavy into government debt
Yep, that’s the plan.
If a frog is placed in boiling water, it will jump out, but if it is placed in cold water that is slowly heated, it will not perceive the danger and will be cooked to death.
We need an “Eagle Eye” event !
I think I’ll be dead before that happens, if not, I’ll sell all the bullets I’ve been making...1 at a time.
Yup. You can bet that Obama is eyeballing the prize. When he thinks the time is ripe, he’ll simply seize all private retirement accounts (for the public good) and leave gubmint IOUs to pay you back in monthly entitlement checks in the amount that they determine is right for you after you “retire.”
Exactly. When the $205K limit is offically proposed, demand that the same cap apply to all federal, state and local government pensions.
What happens if you accumulate too much?
Do they confiscate your 401K?
As I’ve repeatedly stated, retroactive slavery will get you a civil war from me.
Yes they will. Bernanke’s inflation is just forestalled. $3M will be what you need for a middle class lifestyle very soon.
He died 12 years ago.
Miss him, but glad he didn’t see the fourth turning. He went through it the last time, and had no illusions about it.
I fear for my kid.
I dont expect to be able save >$3M so the GOP will take a hard do or die stand against that idea, however I do pay state sales taxes so I expect the GOP in the House to screw me on that like many in the Senate just did.
Not with military cuts. We’d have to get some really, really big pay increases.
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