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Hoping you smart FReepers can help the financially ignorant like me with some good advice.

Wouldn’t I take a major hit cashing out my 401k?

I am lost. And I trust Ann.

On 401ks

Posted by Ann Barnhardt - August 3, AD 2012 7:26 PM MST

401k plan of attack:

1. STOP MAKING CONTRIBUTIONS if you haven't already.

2. Liquidate it. Pay the "penalty". Would you rather pay a penalty or have it all stolen? Or possibly replaced with a "government savings account" comprised of Treasury paper which will probably default or be confiscated long before you are ever allowed to "tap it", and will NOT be able to be passed to your heirs should you croak, but will instead be resorbed back into the collective? Oh, and don't bother whining to me about the "tax consequences". Paying income taxes to this satanic baby-killing Christ-hating government is now, absolutely MORTAL SIN. Why, why, why would you pay taxes?

3. If you can't liquidate it, take out a loan on the balance. Take out the maximum possible loan, and then set up the repayment schedule on the longest possible term.

Now, let's talk about all of you out there who are not permitted by your employer to liquidate your 401k. That decision rests with the PLAN ADMINISTRATOR, who is your employer, be it an individual or a board.

What kind soulless, psychopathic monster would refuse to let their own employees have access to their own money? What POSSIBLE reason could there be for a business owner or a board to refuse to fill out a few forms, sign at a few documents and just let people have their own money?

If your employer will not let you out of your 401k, you need to sit down and think long and hard about who you are working for, and why you are working for them, because they are, by definition, bad people.

Finally, what lesson can we learn from this? How about this: If you don't have access to something, if you cannot take physical possession of it, if all you have is someone telling you that they are taking care of your money, which you cannot touch or have access to - THEN IT ISN'T YOUR MONEY, AND IT NEVER WAS. In short, you have been conned.

If your employer won't let you liquidate your 401k, that means that your employer has CONNED YOU by telling you that they were paying you a wage of X, when in reality it was less than X by the amount of your 401k contribution amount. Go sit down and figure it out. Back out your 401K contributions off the top of your pay as if they never existed. THAT is your actual wage, if your employer refuses to let you out. Would you have ever agreed to work for that wage?

For those of you who come out on the other side of this collapse and war, you must always remember that if an asset is not FULLY liquid and available to you, then it isn't really yours at all, and you have to assume that all such arrangements are nefarious and must be rejected.

The 401k Confiscation: The Ghilarducci Plan Part 1

Posted by Ann Barnhardt - August 4, AD 2012 1:23 PM MST

PREFACE: I originally posted this on May 6, 2010. Just for giggles, I looked up the gold and silver markets on May 6, 2010.
Gold: $1170 per ounce 5/6/2010, $1603 yesterday
Silver: $17.59 per ounce 5/6/2010, $27.78 yesterday
Just sayin'.

Let's start with citations first.

Click Here for Teresa Ghilarducci's EPI Briefing Paper

Copy and paste this URL into your browser for the HumanEvents.com article:

http://www.humanevents.com/article.php?id=36823

Where to begin, where to begin. Well, a long time ago an angel named Lucifer decided that he was going to rebel against God . . .

That might be a little too much back story, but you get the drift. Let's fast]forward to November 20, 2007. The "Economic Policy Institute ] Agenda For Shared Prosperity" (which holds the dubious honor of having the most thoroughly COMMUNIST NAME IN THE HISTORY OF THE UNIVERSE) published its Briefing Paper #204, authored by flaming Marxist Teresa Ghilarducci.

Teresa is a member of the faculty at The New School in New York City, which is a Socialist University. Now, you might say, "Ann, ALL universities in this country could rightly be called "socialist" nowadays". True dat. But the New School makes Berkeley and Columbia look like Oral Roberts University and BYU by comparison. No, the New School is LITERALLY a socialist university. It was originally called the "University in Exile" and was begun by a bunch of Neo]Marxist scholars who were thrown out of fascist Italy and Nazi Germany in the early 1930s. Yeah. Remember my post about how Marxists purge intellectuals? But the other, somewhat humourous angle is that these guys were such extreme Marxists that they made Hitler and Mussolini UNCOMFORTABLE. Wowzer. So, they emigrated to NYC, where they would Fit. Right. In. Dude.

So, Teresa is now a big]wig at the "Too Freaky For Mussolini" (that kinda rhymes) New School. She writes this paper called "GUARANTEED RETIREMENT ACCOUNTS: Toward Retirement Income Security". That's the hotlink above. Nutshell? Federal government siezes all 401(k)s and IRAs and replaces them with US Treasury Bonds. In other words, you would be FORCED to effectively loan all of your retirement accounts to the government, and continue loaning 5% of your income to the regime MANDATORILY. This would now be called a GRA, or Government Retirement Account, administered by the Social Security administration. Your "contributions" to your GRA would be automatically deducted from your paycheck, just like SocSec. Participation would be mandatory, but in the purely voluntary sense of the word, you understand. (I haven't found the muslim exemption yet, but I'm sure they'll write that into the final bill. The government employee exemption is already there on page 17 of Teresa's paper.) You would not be able to tap your contributions under any circumstances. No early withdrawal, no loans. When you die, only a tiny fraction of your GRA balance would go to your heirs, and even then, it would be transferred into THEIR GRA accounts, which they could then not touch until retirement.

But the real point of this can be found on the top]right of page 12 under the header "Why not simply expand Social Security?"

"If subsidies for 401(k)]style plans and IRAs can be reallocated to Guaranteed Retirement Accounts, why not use this money to shore up and expand Social Security? This is certainly an option."

This is an admission that there is no "lock]box" in effect on the GRA money, and it would be a FLIPPING FREE FOR ALL. The 401(k) and IRA assets in the United States are currently pegged at over SIX TRILLION DOLLARS. The Obama regime would instantly "borrow" against that money and burn through it in the blink of an eye in the Ponzi Scheme method of SocSec. It is widely thought that the first group to be bailed out by GRA siezure money would be . . . wait for it, wait for it . . . unions. SEIU is massively underfunded on its retirement obligations. So, yes, the Obama regime would sieze YOUR retirement money and redistribute it to Andy Stern and the kids over at the SEIU to bail their corrupt, lying, cheating, scheming, communist butts out. No wonder Andy Stern is the most frequent visitor to the White House. Well, that is if you don't count Markus, who gets "that really smooth coke from Costa Rica". I'm talking "official" visitors, here.

“Wouldn’t I take a major hit cashing out my 401k?”

Depending on your tax bracket, you would lose about half of it. (38% tax and 10% penalty - plus sales commissions)

“I am lost. And I trust Ann.”

If the end of the world is next week, her advice is sound.
Keep your money where it is.

The 401k Confiscation: The Ghilarducci Plan Part 2

Posted by Ann Barnhardt - August 4, AD 2012 1:22 PM MST

Teresa recently was called before Congress to give testimony about her paper and this plan.

Vice President Joe Biden is on record floating this idea as recently as February 2010 in his "Middle Class Report". To be more accurate, Biden was told to "read these words that are written on this card, and if you read them real good, you can have an ice cream sammich!" At the same time, the Obama regime officially requested that the Departments of Labor and Treasury gather information on this scheme. This is all cited in the HumanEvents.com link above.

Finally, House Republican Leader John Boehner sent a letter on Monday night to Secretaries Solis (Department of Labor) and Geithner (Department of Treasury and Department of Needs to be Taken Out Back Behind The Woodshed and Have That Smirk Smacked Off His Lying Punk Face) saying, in essence, "back the (censored) off".

The bill for this is already being written, and TRUST that it isn't being written by anyone ACTUALLY in Congress. No, it is being written by flaming Communist Teresa Ghilarducci and her orcs over at The New School (too Freaky for Mussolini).

The regime, in the spirit of "never letting a good crisis go to waste" will use today's market action and any subsequent European defaults as the crisis]excuse to push this through in the same illegal reconciliation method as they used to push through ObamaCare. Afterall, the mean old stock market is just too risky. Mamma Obama has to protect all of you helpless, stupid economic units ] ahem ] I mean "workers", right?

My advice? Simple. GET YOUR MONEY OUT, OUT, OUT OF 401(K)s and IRAs NOW. Take the penalty. Pay the tax. Whatever. Just get your money home. Because if the regime gets its hands on it, YOU WILL NEVER SEE A SINGLE PENNY OF IT AGAIN. It will be gone forever. I have actually been preaching this for over a year now, but since I have lots of new readers, you need to hear this. I am dead serious when I say that the safest place for your wealth right now is in gold and silver coins buried in a mayonnaise jar in your back yard. DEAD SERIOUS. No joke. No funny]ha]ha. Dead. Serious.

Spread the word.

Here is Teresa Ghilarducci herself explaining her scheme. She starts out claiming this is voluntary and then states at the 14:15 mark that it is mandatory. Remember, these are exactly the same people who said that ObamaCare would drop insurance premiums and that everyone could keep their existing insurance and doctor. These people are evil Marxist liars who will say ANYTHING in order to impose their fascist will. This is what Marxists do. They lie without conscience or hesitation.

If you can't stand to listen to this witch, fast]forward to the 13:50 mark. Listen from 13:50]14:18.

"Obama is not the only entity that is looking at what a retirement reform system should look like in detail. In the last two years, myself and two other academics working alone, we have been working independently ] we are quite, sort of, pleased to find out that we've come to the same conclusion, um, have come to the conclusion that we need a mandatory, um, system."

Epilogue: MF Global, PFG Best, and now the Knight Capital "algo error". One of the reasons that the government is gleefully relishing in the disintegration of the financial markets is because they WANT people to BEG the government to "nationalize" and "guarantee" retirement accounts. They are building a dossier to argue that the markets aren't safe (but remember, the markets have disintegrated BECAUSE of the actions and responsorial inactions of the oligarchs and their bureaucrat cronies). That's what Communists do. This is the Cloward-Piven Strategy in full execution. Intentionally cause the system to collapse, then whip up the "useful idiots" into a frenzy, and finally seize total power AT THE INVITATION OF THE PEOPLE. The Russians BEGGED for Lenin and the Bolsheviks. They DEMANDED tyranny. The Germans BEGGED for the Third Reich and Hitler. They DEMANDED tyranny.
Before it is over here, the people of the United States, monumentally more stupid, godless and most especially HELPLESS, will BEG the government to take over their retirement accounts - to save them from the very market that the government has coordinated with the Bankster Oligarchs to destroy.
Get your money the hell out and USE IT TO PREPARE FOR COLLAPSE AND WAR.

Wouldn’t I take a major hit cashing out my 401k?

I yanked my pension a few months ago. Took a 20% tax hit and a 77% penalty on the rest. The family and friends said I was nuts. I told them that something is better than nothing...

...and rest assured, NOTHING is coming folks.

p.s. I hope to God that I am wrong but things aren't looking too swell.

>>Wouldn’t I take a major hit cashing out my 401k??<<

A catastrophic hit.

>>I am lost. <<

Unless and until you join the ranks of people who are spending real money and time making shelters, buying ammo and food for 10 years to be ready for “after society collapses” there is no reason to be lost. Do market research, hedge your bets with precious metals if you are really nervous. Don’t panic and you will be OK.

>>And I trust Ann.<<

Bad idea.

“Wouldn’t I take a major hit cashing out my 401k?

I am lost. And I trust Ann.”

Be careful before you do something rash; there have been many many end of the world proclaimers over the decades.
Do your research. Panicking is a mistake 99.9% of the time.