Class Warfare's Next Target: 401(k) Savings

Investor's Business Daily ^ | 2-17-2010 | By NEWT GINGRICH AND PETER FERRARA

[Red Badger]

You did the responsible thing. You saved in your IRA or 401(k) to support your retirement, when you could have spent that money on another vacation, or an upscale car, or fancier clothes and jewelry. But now Washington is developing plans for your retirement savings.

BusinessWeek reports that the Treasury and Labor departments are asking for public comment on "the conversion of 401(k) savings and Individual Retirement Accounts into annuities or other steady payment streams."

In plain English, the idea is for the government to take your retirement savings in return for a promise to pay you some monthly benefit in your retirement years.

They will tell you that you are "investing" your money in U.S. Treasury bonds. But they will use your money immediately to pay for their unprecedented trillion-dollar budget deficits, leaving nothing to back up their political promises, just as they have raided the Social Security trust funds.

This "conversion" may start out as an optional choice, though you are already free to buy Treasury bonds whenever you want. But as Karl Denninger of the Market Ticker Web site reports: "'Choices' have a funny way of turning into mandates, and this looks to me like a raw admission that Treasury knows it will not be able to sell its debt in the open market — so they will effectively tax you by forcing your 'retirement' money to buy them."

Moreover, benefits based on Treasury bond interest rates may be woefully inadequate compensation for your years of savings. As Denninger adds, "What's even worse is that the government has intentionally suppressed Treasury yields during this crisis (and will keep doing so by various means, including manipulating the CPI inflation index) so as to guarantee that you lose over time compared to actual purchasing power."

[Renegade]

I’m with you bro ‘!

[y6162]

This gambit won’t poll well. =)

I think we should “death panel” it.

[RSmithOpt]

Agree. However, remember this: no where in recent time has the US Congress done anything to reduce its size, i.e. eliminate its pet project social programs, etc.

IOW, not one piece of legislation has unlegislated any prior bills / spending / programs. It's all been tax & spend & growth of the goobermint and no matter who we put into office, nothing will be done to eliminate federal spending programs before they seize the 401K accounts with a promise only.

[oyez]

Amendment IV

The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.

Bring it on.

[Dead Corpse]

Actually, I’m surprised your suggestion isn’t happening already.

[DonaldC]

“In plain English, the idea is for the government to take your retirement savings in return for a promise to pay you some monthly benefit in your retirement years.”

I am not interested in social security II.

[mrmeyer]

[Wolfie]

Feh. The financial institutions that house these plans will happily turn them over to the Feds. I’m guessing the majority will suck it up. A few will go Postal, but they’ll be easily neutralized with our militarized police force and Patriot Act powers. So it goes.

[CPT Clay]

This will be war!

[Paperdoll]

DON’T THINK THEY HAVEN’T PREPARED FOR INSURRECTION! WHY DO YOU THINK ALL THOSE ILLEGALS HAVE BEEN LET INTO THE COUNTRY BY BUSH AND OBAMA, AND THE MUSLIM BROTHERHOOD SO FAWNED OVER BY OBAMA? ONE THING THOUGH, WE OUTNUMBER THEM. :)

[tbpiper]

What are RPG’s goin’ for now on E-Bay?

[DonaldC]

Jessie Jackson used to talk about raiding retirement accounts. Maybe the best place to put money anymore is in buried jars in the back yard.

[Matchett-PI]

bttt

[raybbr]

Wonder how many of my lib friends with 401k’s will respond.

I bet you hear more than once "Well, the govt. has to get money from somewhere to pay off the debt."

[ROTB]

NOW I see the need for riot police.

[lgjhn23]

I’d rather be a witness to Mrs. Tyson riding the “Mare of Steel” or be guillotined.
These people are dumber than rocks.
They have NO IDEA the mood of the people right now......

[Drill Thrawl]

I'm beginning to wonder if it is worth it to liquidate all of my tax deffered accounts, take the hit for the penalty and taxes and to put that money into tangible assets?

Lose half now or all later?

I continue to believe that these *&$¥^*$# are trying to provoke a violent reaction.

[Bloody Sam Roberts]

In plain English, the idea is for the government to take your retirement savings in return for a promise to pay you some monthly benefit in your retirement years.

Over my dead body. And I mean it. I'll pull all funds out of any retirement vehicle (and gladly suffer the withdrawal penalties) so fast, their heads will spin.

[BradtotheBone]

That’s exactly how they wan’t you to react ;0)>

[wastoute]

I warned y’all ‘ bout this a year ago.