Hearing on 401(k) plan grows to urban legend (MSM preparing people for government seizure of 401K!)

MSNBC ^ | Nov. 7, 2008 | John W. Schoen

[FocusNexus]

There is no proposal in Congress to take away your 401(k) savings account. In any case, the stock market has already done a pretty good job of wiping out several trillion dollars worth of 401(k) savings without any help from Congress.

At that hearing, one of the witnesses, Teresa Ghilarducci, an economics professor at The New School for Social Research, made an interesting observation. By her calculations, the government spends as much as $80 billion a year in tax breaks to subsidize 401(k) savings plans. In her opinion, that money could be better spent offering a tax credit for a revised retirement plan that would guarantee a minimum income stream to people who saved for retirement. You'd give up some of your tax savings in return for a guaranteed return for life.

But there's a lot wrong with the 401(k) program. For starters, these retirement accounts have dramatically shifted two huge risks from employers to individuals.

Individually managed 401(k) plans also come with a much bigger investment risk.

We're all now learning - the hard way - that 401(k) accounts are an imperfect program for guaranteeing economic security in retirement. The Social Security system we now rely on was created in the wake of a financial upheaval not unlike what we're now experiencing.

So maybe it's not such a bad idea to start listening to new ideas.

[Grampa Dave]

McDermott makes socialists look middle of the road.

He has been a hater of America since the Nam days when he was a Pysch in the Navy.

McDermott is a communist. His heros are Castro, Ho Chi Minh and other commy serial killers.

[Libloather]

Mark Levin asked her that very question on his radio show about two weeks ago. All she had to say is, that Social Security is backed with the full faith and credit of the United States. Comforting, no?

Count me out. I started the process of liquidation today. The bank has to mail me forms to fill out. Once they get them back, the deal is done. No taxes or penalties are taken out until tax time. It'll be up to me to report the money by April 15 and pay any tax and penalty for premature withdrawal. I'm more than fine with that.

The banker dood mentioned that the RATS may remove the tax exempt status on these accounts. He also thought that the total confiscation of the loot would be met with huge resistance from account holders (kinda like the bank bailout scam - eh?) RATS will do what they want to do.

I can't afford to wait for the RATS to spring some cutoff date on 401Ks where owners will no longer have access to their own loot. Without the tax exemption, the plan no longer works for me. I'm done.

[Betty Jane]

No, there won't be civil war. We are a bunch of timid little sheep with no one to lead us. We will keep our heads down. If one were to do something, he would be taken out by the government. The rest of us would bleat how awful it was and how there will be civil war, and put our heads down.

Until we have a thousand Henry Bowman's, nothing will get better, and I'm not Henry Bowman.

[Dionysius]

Add to that doing away with 2nd Amendment rights, gutting the military, sky-high unemployment, ditching the dollar for the Amero, energy caps, the Fairness Doctrine and the FOCA Act, a fighting Civil War is not only inevitable, but it satisfies Thomas Jefferson’s prediction. I agree, it will be bloodier, but equally (if not more) important to maintaining our Republic!

[oldteen]

Thanks.

[Grampa Dave]

My wife, who will be 69 next year will be rolling over all but $1,000 from her still active 401k to her FIDO Ira. Which will go into Bank CDs as soon as it is rolled over.

She still will contribute bi monthly to her K and receive the matching contributions from her employers until the tax deferral is killed.

I sent a note, re the possible dropping of the Federal guarantee on the money market funds in December(where my wife has all of her 401k) to her personnel director. Apparently, that got several people in her organization thinking about what to do with what they have left. Many over 59.5 will be consulting with their tax consultants re options.

The slaughter of 401l’s has been on the back burner of lib think tanks for years.

Certain key words phrases have been used by them and their trolls here on FR.

Like investments in our 401ks is not savings, which is one of their main thrusts.

Means testing re social security and probably now with the rollover from 401k’s to the Fed Retirement/Social Security paper bs, will become more than a buzz phrase.

We need to stay on top of these events and monitor and decode their verbage very closely.

[Libloather]

She still will contribute bi monthly to her K and receive the matching contributions from her employers until the tax deferral is killed.

I don't get any matching funds. (That's a sweet deal while it lasts, BTW.) I'm about to end the monthly 'contribution'.

[Grampa Dave]

My wife’s 401k’s matching funds and current tax deferral will keep her donating until Zer0 changes that.

However, she will be rolling most of her 401K asap into her Fido IRA to become CDs.

When Zer0 ends the tax deferral, she will roll the rest into her Fido IRA.

What is interesting re the talk of killing 401k’s is the omission of IRA’s in the discussion.

Last buy not least, yesterday, we had a visit from a younger 40 something relative, who has been away for a few years. He is in the financial game and his wife admits to going over to the dark side to vote for Obama. In a brief discussion with him re 401ks, he converted all of their 401k’s to self managed Roths in the past two years. His partners are known liberals.

[Grampa Dave]

Obama Wins, Economy’s Doomed:

Peter Schiff, president of Euro Pacific Capital and author of ‘The Little Book of Bull Moves in Bear Markets,’ says a big-government Obama administration will lead to an economic collapse on par with the Great Depression.
Sun 11/09/08 04:59 AM EST — Gregg Greenberg

Check the video linked below to really make your day, week, month, year, decade:

http://www.thestreet.com/_yahoo/video/strategysession/10446771.html?cm_ven=YAHOOV&cm_cat=FREE&cm_ite=NA

[an amused spectator]

John W. Schoen - senior liar for Obama Press, MSNBC Division.

'The media isn't controlling the political discourse' Gee, John, what was the millions and millions of dollars worth of free advertising that you guys gave Obama about, anyway?

You'll notice that what fell out Senior Liar Schoen's discussion was "matching". This is a VERY important phrase, but strangely, not talked about anywhere by John.

Hmmmmm.

[gibsosa]

bump

[Political Junkie Too]

Is this supposed to be a psyops article to keep people from divesting their 401(k)'s and taking the penalty hit, instead of keeping it whole for the government to seize?

-PJ