Posted on 12/07/2022 1:58:33 AM PST by Libloather
resident Joe Biden is threatening the returns of 401(k) savings accounts, risking millions of workers’ comfortable retirements.
If you put money into a 401(k), beware. Until now, the law always required fund managers entrusted with your savings to invest the money where it’s expected to get the top profit for you. Period. But late last month, Biden’s Labor Department announced a rule change that goes into effect at the end of January. It will allow fund managers to invest your money in the stocks of companies that favor left-wing policies, even if they earn a lower return.
It’s legalized theft. The future earnings on your retirement nest egg are being sacrificed to advance a woke agenda.
A lower return means you’ll have to work more years before retiring or start putting more into your 401(k) - or settle for a lesser standard of living in the final years of your life.
Biden’s rule paves the way for your 401(k) savings to be put into what are called ESG funds. But you can stop it from happening if you’re vigilant.
What is ESG? E stands for environment, S for social justice and G for governance, meaning who gets hired or put on the company board. ESG funds generally invest in companies that oppose fossil fuels, support unionization and stress gender and racial diversity over merit.
From the worker’s point of view, ESG stands for Expect Slower Growth. These funds charge higher fees and often produce lower returns, especially now when oil-company profits and stocks are soaring while the tech companies ESG funds tend to favor are doing poorly.
Two aspects of the Labor Department’s rule should cause you to worry. Both reverse worker safeguards the Trump administration adopted.
First, Donald Trump’s Labor Department stated that fund managers are obliged...
(Excerpt) Read more at nypost.com ...
Teresa Ghilarducci, labor economist and Clinton Administration advisor, proposed a one-time assessment of all private retirement accounts of up to 20% IIRC. This was during Hillary’s own Healthcare takeover attempt.
BTTT
Watch out for something called EITs I think, those pushing ESG know we are on to them so they simply changed the name.
The author is engaging in hysterical fear mongering.
Thr Dept. of Labor rule she cites that is being modified was an idiotic case of government meddling anyway. Who cares if it’s being changed — since any investor should always be looking out for his or her own interests. If a fund manager is getting lower returns due to this ESG nonsense, then don’t invest in that stupid fund in the first place.
bkmk
Ping
Taxpayers cannot support the failed green new deal, so they will use your pension funds to support the companies that enact the green new deal on top of it.
This is how you collapse a nation.
I’m retired.
My income comes from pensions( which are all annuities) and social security.
I own my home, land, and have no debt. That was my retirement plan.
I retired at age 55.
Only investing I do is Tbills so I get some of my tax money back from the bastards.
If you keep rolling the dice in the stock market casino, keep in mind the “House” is the only one that gets tangibly rich.
All else is just paper, eg. Elon Musk is said to have lost a 100 billion dollars recently. Unless his land, or a factory slid into the ocean. He didn’t lose anything. He lost potential wealth.
“A bird in the hand is better than two in the bush” or something like that.
If the “Rule” conflicts with the “Law” (ERISA), what are its chances for survival?
ERISA is supposed to protect the investor from larceny, theft, embezzlement, forgery, misappropriation, wrongful abstraction, wrongful conversion, willful misapplication, etc. One of these would apply.
Is it fear mongering? or is she pointing out just another little step to get us to, “you’ll own nothing...”?
If you are concerned about “owning nothing,” then you probably have no business investing in a 401(k) plan in the first place.
I’m sure most FReepers with 401k choose their funds wisely — for myself simple no- or low-load index funds with no management ‘thinking’ involved.
However a) there’s a host of targeted funds based on retirement date and b) companies have symbiotic relationships with management companies so people are being potentially led into having a manager. These would get pooched as many people don’t check in often if at all.
As for whether ERICSA or leftism prevails in law — look at the track record of late! When a lefty wants to do something, first they do it, then the damage happens, and it’s left to us poor slobs to file suits on our own dime and pursue the cases through endless appeals since half(+?) of the judges are leftists themselves and will make up nonsense to get the agenda result.
Sounds like the makings of a massive lawsuit.
As an aside, this is not all coming from Biden. It’s coming from the hateful racists and Marxists who now run the Democrats. Their intention is wealth redistribution. I will become an expat before allowing this to happen to what I’ve worked for. Inequality of effort is a huge determinant of inequality of outcome.
The Government was a poor business partner to chose in your retirement investment (not you, relic). How long will the “Rule of 55” exist?
Employers and their retirement managers should have a fiduciary responsibility to the employees. Investing in anything which doesn't have the financial best interest of the employees shouldn't be allowed.
I am surprised that the government just hasn’t grabbed all pensions and savings.
Then giving everybody a universal income of a thousand a month.
Because who are you to have more then the next person.
The administrator of the ‘facility’ [read: nursing home] I am ensconced in is stealing my disability benefit supposedly to pay for my ‘care’ even though the gov’t should be responsible for that. She most generously is giving me a $50/month allowance [pittance] to cover my ‘incedentals’ Not happy am I...and am about to fight this. We got a $200/month raise that I will never see.
Smart! Own everything, including your source of water and food. Self sustainment is the ultimate pushback to the welfare state.
Better yet — Go into business for yourself and set up your own 401(k) plan. That way, you can be the trustee for your own 401(k) any way you want.
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