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'Automatic' IRAs to Fill Retirement Gap
The Street.com ^ | Aug. 12, 2010 | Joe Mont

Posted on 08/12/2010 10:01:10 AM PDT by Clairity

A bill filed by U.S. senators Jeff Bingaman (D-New Mexico) and John Kerry (D-Mass.) would automatically enroll most U.S. workers in individual retirement accounts if their employers don't sponsor a retirement plan.

All automatic IRAs would offer the same three standardized investment options, each to be developed with regulations and fee guidelines issued by the Treasury and Department of Labor. The options would include a "principal preservation fund" (which would include a special Treasury Retirement Bond , the R-Bond, designed for use within an automatic IRA), a "life-cycle" option and an "alternative investment option" that can include a higher concentration of equities.

(Excerpt) Read more at thestreet.com ...


TOPICS: Business/Economy; Extended News; Government; Politics/Elections
KEYWORDS: democrats; forcedsavings; government; ira; iras; obama; regulations; retirement; rothira; savings
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The government will MAKE you save money, you have to take action to opt out.

This article doesn't mention, but other ones do, that the default is a Roth IRA, so you can't even save on taxes. The government will tell you how to invest it, there are only 3 options (see above), with the default investment a US "R-bond", retirement bond

Related article with additional information:

7 Ways the Automatic IRA Would Impact Retirement Savers

We are all too stupid to decide for ourselves, we need the government to force us to save and to take away any personal options of how to invest.

1 posted on 08/12/2010 10:01:11 AM PDT by Clairity
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To: Clairity

I’m sure this one will have a lock box to make sure the money is actually there when you retire /sarc


2 posted on 08/12/2010 10:03:50 AM PDT by neodad (USS Vincennes (CG 49) "Freedom's Fortress")
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To: Clairity

This is really a tax increase. The government will use the money and deposit IOUs into the IRA accounts. Then down the road, they will have to figure how to come up with the money. Let’s get rid of SS and let the people have personal accounts.


3 posted on 08/12/2010 10:05:11 AM PDT by kabar
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To: Clairity

Well they are trying to force Americans to buy HC, Why not go for the retirement mandate.

One of their Wall Street buddies must have come up with them.

Remember the float of Gov getting control of Pension plans. Guess they are serious. If there is money to be stolen the Dums will try to get it.


4 posted on 08/12/2010 10:05:51 AM PDT by Marty62 (marty60)
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To: Clairity
The government will tell you how to invest it, there are only 3 options (see above), with the default investment a US "R-bond", retirement bond.

In other words, this is just another scam, like the Social Security trust fund, to get our hard-earned pay to finance government deficit spending.

5 posted on 08/12/2010 10:06:14 AM PDT by dirtboy
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To: neodad
I’m sure this one will have a lock box to make sure the money is actually there when you retire /sarc

That's an interesting point. Will these accounts consist of real investments, or will they be IOUs whose returns is based on a tracking index? If the latter, we could fund the Social Security Ponzi scheme for another 20 years!

6 posted on 08/12/2010 10:06:37 AM PDT by Pearls Before Swine
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To: neodad

UNEXPECTED, the confiscation of wealth begins.


7 posted on 08/12/2010 10:06:37 AM PDT by DaxtonBrown (HARRY: Money Mob & Influence (See my Expose on Reid on amazon.com written by me!))
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To: Clairity

Oh boy, the D’s behind the names, and the sleazy names themselves gives the laugh to this plan.

These two clowns have never nor can ever do anything creative or beneficial.

Good gawd, folks, they’re members of the stupid - er - ruling class.


8 posted on 08/12/2010 10:06:43 AM PDT by Da Coyote
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To: neodad

And also we can “keep the retirement plan we have now” — just like “we can keep our insurance and doctors we have now” under Obamacare.

The government is taking over our personal finances.


9 posted on 08/12/2010 10:07:15 AM PDT by Clairity ("The United States needs to be not so much loved as it needs to be respected." -- VP Dick Cheney)
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To: Clairity

So they’re basically recreating Social Security by instituting mandatory savings and retirement plans? Right now employees can opt out, however, how long will it be before it is compulsory?


10 posted on 08/12/2010 10:09:15 AM PDT by Jackson57
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To: kabar

“The government will use the money and deposit IOUs into the IRA accounts.”

Exactly — that’s the whole idea, what do you think that US “R-bonds” will be?

They will take the money now, then Obamacare will make sure Seniors don’t live long enough to actually want to use their money.


11 posted on 08/12/2010 10:10:36 AM PDT by Clairity ("The United States needs to be not so much loved as it needs to be respected." -- VP Dick Cheney)
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To: Clairity
I smell a RAT. What is to prevent the government from FORCING you to rollover your private held IRA investments into their government held investments as prelude to stealing everything from you?
12 posted on 08/12/2010 10:13:58 AM PDT by Myrddin
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To: Clairity
The rumors I have been hearing are that they want to seize individual 401(k)s and IRAs and convert them to a Government run pension. See:

ABC News: Movement to Scrap 401(k)s Gains Traction

US News: Would Obama, Dems Kill 401(k) Plans?

13 posted on 08/12/2010 10:14:12 AM PDT by ravingnutter
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To: dirtboy

“In other words, this is just another scam, like the Social Security trust fund, to get our hard-earned pay to finance government deficit spending.”

You hit the nail on the head.

But they are hoping we are too stupid to figure it out.


14 posted on 08/12/2010 10:14:17 AM PDT by Clairity ("The United States needs to be not so much loved as it needs to be respected." -- VP Dick Cheney)
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To: Clairity

How much you want to bet that the government is going to force these IRAs into government bonds? The Feds need more people to buy the debt / bonds so they can continue their quantitative easing program. Got to spread the wealth .... err debt don’t you know.


15 posted on 08/12/2010 10:14:37 AM PDT by taxcontrol
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To: Clairity

Time to go sharpen my pitchfork again and reheat the tar........


16 posted on 08/12/2010 10:17:00 AM PDT by OB1kNOb (My problem with aging is I tend to forget things. Also, I've found that I tend to forget things.)
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To: ravingnutter

The government will manage our money so much better - we can see how fiscally responsible they are... (/sarcasm)

They want to control all aspect of our lives and want us to be completely dependent on the government for our health, lives, financial “security”.


17 posted on 08/12/2010 10:17:07 AM PDT by Clairity ("The United States needs to be not so much loved as it needs to be respected." -- VP Dick Cheney)
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To: Clairity

I am from the government and I am here to help you. (/s)


18 posted on 08/12/2010 10:19:12 AM PDT by TYVets
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To: taxcontrol

“How much you want to bet that the government is going to force these IRAs into government bonds?’

They ARE doing that — gvoernment bonds are the default, they just call them “R-bonds” (retirement bonds).

They are forcing people to loan money to the US government, and later they will figure out a way to NEVER have to pay it back to us.


19 posted on 08/12/2010 10:19:12 AM PDT by Clairity ("The United States needs to be not so much loved as it needs to be respected." -- VP Dick Cheney)
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To: kabar

The reason personal accounts are not sponsored by Democrats is the mere fact they will not control nor have jurisdiction over people’s lives as they do with Social Security.

The same fact holds true to Government workers on all levels (Federal, State and Local). They can collect taxes from the private sector and pay the public sector with ever increasing rates.

This gives the Government leverage over party loyalty and union affiliation as they extort money from the productive to pay for the non-working and the State workers who produce nothing in the way of GDP.

The question comes to necessity, are soldiers, cops, firemen and teachers important? Yes they are, but should we pay for them for life...maybe cops, fire and military as they put their lives on the line...but run-of-the-mill paper pushers in the courthouse or DMV?

I would like all public employees, except cops, prison guards and military, to have 401K’s they contribute to, and based on the FY profit or loss, their employee match is in lockstep with the overall private sector.

Unions killed the auto industry, the airlines and now are killing the government.

Time for reform. Now.


20 posted on 08/12/2010 10:19:43 AM PDT by wac3rd (Somewhere in Hell, Ted Kennedy snickers....)
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