Posted on 01/30/2014 1:59:09 PM PST by Rusty0604
You didn't think the US could at first slowly, and then all of a sudden, expropriate retirement accounts and invest them in the "no risk, guaranteed return" MyRA Ponzi scheme introduced by Obama during the State of the Union address without lots of behavior-modifying indoctrination in the "friendly press" first now did you? Sure enough, here is the first major propaganda salvo, coming from none other than the US Treasury Secretary, Jack Lew, which will be published tomorrow across the McClatchy media empire.
* * *
Just out from the US Treasury Department, "In an op-ed to be published in the January 31, 2014 editions of McClatchy Newspapers, Treasury Secretary Jacob J. Lew discusses myRA - a simple, safe and affordable starter savings account to help low and moderate-income Americans begin building towards a more secure financial future."
myRA: A start to a secure retirement
Over the past five years, our country has accomplished a number of big things. The economy has grown stronger after being shaken to the core by the worst recession in our lifetimes. Our businesses have created more than 8 million jobs. The financial system is more resilient, with better protections for consumers and investors. And investments in domestic energy production have helped put the promise of American energy independence in sight.
In the meantime, health care costs have grown at their slowest rates in years while millions of families now have access to affordable health care coverage so they are not one hospital visit away from falling into financial ruin. Our auto industry is surging even as home values are rebounding. And the federal deficit has been cut by more than half.
So we have made clear progress. But we all understand that we are not where we want to be yet. Too many Americans cannot find a job. Too many Americans who do have a job are not getting paid enough to support their families and make ends meet. And too many Americans do not have the skills they need to succeed in today’s economy.
As President Barack Obama made clear in his State of the Union address, it is time to focus on restoring opportunity for all. That means helping to make sure more Americans can take part in our growing economy and build some economic security for the long term. To get that done, we are putting forward real, concrete solutions to our most pressing problems—from college affordability and job training to fair wages and a stable retirement.
Now, when it comes to retirement, you would think that the vast majority of working Americans would be putting some money away for their future. But the truth is, many are not. For millions of working men and women, it is not easy to save for the long haul. Many employers do not offer a retirement plan. And setting up a retirement account and maintaining it can often be too difficult, expensive and time-consuming.
The statistics paint a stark picture. Only about half of all workers have access to an employer-based retirement plan, such as a 401(k). And left on their own, few workers save. It is estimated that fewer than one out of 10 eligible workers actually contribute to an IRA.
Still, every American deserves the chance to build a secure retirement. That is why the Obama administration has designed a new way for working Americans to start saving for the future. This program, which will begin later this year, is called myRA or My Retirement Account.
This account is designed to help low- and middle-income workers, who are too often overlooked or ignored, begin saving for retirement. We are talking about the waitress who is holding down two part-time jobs to support her kids; the recent graduate who landed a job but is grappling with student loans; the janitor who has never been given the chance to invest in a retirement account.
Here is how myRA, which is simple, safe and affordable, will work.
You will be able to start saving with an initial deposit of as little as $25 and contribute as little as $5 each payday. If an employer chooses to participate, contributions are made through automatic payroll deductions, making them hassle-free.
There are no fees—100% of any contribution goes into the account and is invested in a Treasury security. That means it will be backed by the full faith and credit of the United States, will earn the same interest rate that is available to federal employees for their retirement savings, and the balance will never go down.
Finally, myRA is not tied to any one employer—it belongs to the worker, not the workplace. In other words, the account is portable and can be easily rolled into a Roth IRA. And if myRA savers ever need to, they can withdraw their contributions tax-free, at any time.
MyRA is a specific way in which we can help hardworking Americans save for the future. But there are other things we can do. In particular, the President has consistently called on Congress to help tens of millions of middle class Americans save for the future by opening up access to automatic IRAs in the workplace.
And we will continue to look for ways to help increase economic security, strengthen the middle class, and provide more ladders of opportunity into the middle class. That is how we will help make sure every American can take part in this recovery. And that is how we will help usher in a stronger, more prosperous future for our country.
Jacob J. Lew is the secretary of the Treasury.
You can put away as little as $5 a paycheck. Let’s see...$120 a year...for say, 50 years...that’s $6000! THAT’LL help you breeze through your retirement years! And that’s $6000 in future dollars. (The inflation will eat up any interest you earn, plus some.)
This makes no sense. The Roth IRA is a terrific retirement plan. The only problem is those CDs are paying next to 0 interest, so there’s no “power of compounding” and the funds don’t grow.
He has erected a multitude of New Offices, and sent hither swarms of Officers to harrass our people, and eat out their substance.
http://www.archives.gov/exhibits/charters/declaration_transcript.html
—That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness.
Retirement experts are underwhelmed. “It’s just a start. It is by no means a solution on its own,” says David Madland, a retirement expert at the Center for American Progress, a liberal think tank closely associated with the Obama administration. The program is voluntary for employers too. And the Obama administration acknowledges that it doesn’t yet have a commitment from any employers to offer the program.
Another problem: Most workers won’t save adequately for retirement, many retirement experts say, unless they are automatically enrolled in savings programs and forced to opt out if they don’t want to save. MyRa is completely voluntary. Others worry that savers can withdraw money freely. The possibility that savers will deplete the accounts before retirement makes MyRa a “woefully inadequate response to the retirement crisis,” says Teresa Ghilarducci, a retirement specialist at the New School for Social Research in New York.
http://bigstory.ap.org/article/guide-obamas-plan-retirement-savings
Wasn't that the idea behind privatizing some of social security back in the Bush days (2%)?
Democrats cried foul at that idea because of the fear that the stock market would go down and people will lose money if managed privately.
But hey, that was then and this is the Big D now, so it's okay today.
-PJ
The money will go into the same lock box as Social Security.
“Secure until the day you die...”
modify it so a portion of the social secuirty goes there instead of this new scam.
from FReeper Dahoser on a thread yesterday...
He’s laying the groundwork for confiscating 401(k)’s and moving to the government-run Guaranteed Retirement Account put forth by Columbia professor Theresa Ghilarducci:
http://www.sharedprosperity.org/bp204/bp204.pdf
and this from Jane Long (h/t WhenIfHow) from same thread...
Check your 401K and Retirement Plan! Plans being switched to ALL Government Bonds without Approval. Finding out by Retirement End of Year Statements
http://sherriequestioningall.blogspot.com/2014/01/check-your-401k-and-retirement-plan.html
http://www.freerepublic.com/focus/f-news/3116914/posts?q=1&;page=51
The scam business has been good for the government, especially lately.
“I hope that fear can make us all get real. The coming retirement income security crisis is a shared problem; it is not caused by a set of isolated individual behaviors. My plan calls for a way out that would create guaranteed retirement accounts on top of Social Security. These accounts would be required, professionally managed, come with a guaranteed rate of return and pay out annuities. This is a sensible way to get people to prepare for the future. You don’t like mandates? Get real. Just as a voluntary Social Security system would have been a disaster, a voluntary retirement account plan is a disaster.” Teresa Ghilarducci
http://www.nytimes.com/2012/07/22/opinion/sunday/our-ridiculous-approach-to-retirement.html?_r=0
Hmmm,,,,
Need to start washing out mayo jars after I use the mayo in them...
and dig some holes in the back yard...
***I believe this is the first shot across the bow of confiscating our IRAs.***
Totally agree. The Socialists have surveyed the landscape of all privately held wealth - both business and private. Wealth that has already been taxed. The Government is looking to loot every cent from working & retired citizens; to pay for the paper funny money it is recklessly printing.
The Socialists looked at health insurance reserves and came up with an excuse to control those funds. The next item up- after IRA’s- will be life insurance policies.
Just received a notice that my Medigap premiums are going up because Medicare deductibles are being increased. Anyone who believes that Medicare coverage is ‘free’ is misinformed. Part A (hospital) deductibles are very punitive and Part B (physician services’) 20% co-insurance is not cheap. Additionally Medicare’s premiums for Parts B & D cost several hundred dollars a year.
For those retirees with IRA’s - who planned ahead and/or continue to work - the Government actually mandates that they make annual, minimum withdrawals ( I believe after age 70) another way to tax the proceeds.
Even if you buy the "only" 2% baloney, price inflation will be compounding.
“If you like your 401(k), you can keep it.”
If I was playing dictator for a day, here is what I would do. I'd create a super IRA that allows both types of contributions and set the limit to the SEP limit that is currently somewhere around $50K. If your 401K plan sucks at work, you can direct them to make contributions directly to your accounts if you want the tax deferment.
That's why the government must kill it.
The next step will be a requirement that a portion of all retirement funds be ‘invested’ in MyRAs. Those funds will be handled with the same responsible and prudent manner as Social Security surpluses have been handled for decades.
I like the part if you want to withdraw your savings you can without paying taxes. What????
So IRS won’t take their cut when folks decide they want to empty their MyRA to go on cruise or buy a car or blow it all in Vegas?
Let me do that with my 401K and I would empty it today.
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