Political Junkie Too wrote: “Yes, but sell to whom?”
The vast majority of 401 K assets would not need to be sold. I would imagine the ‘Government Retirement Fund” would hold something similar to a S&P 500 fund and some government bonds. In fact, I would bet the government would transfer these assets to investment brokers like Fidelity, etc. Of course they might have to make some adjustments to match the SP500 but that could be managed. In effect, this would be a transfer of ownership rather than a liquidation of assets.
When I posted my response I assumed you were referring to smaller companies, not a SP500 component. Equity in those companies would probably be sold over a period of a few years to minimize impacts.
So the federal government would confiscate voting rights in privately held corporations? A transfer of ownership of corporate stock is not just moving money around, it's also taking away voting participation from individuals and giving them to the government?
The government would become a voting proxy holder for EVERY corporation held in retirement funds?
-PJ