Posted on 02/18/2010 8:03:31 AM PST by 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."
(Excerpt) Read more at investors.com ...
POST 8 LOLOLOLOLOLOLOLOLOLOLOLOLOL!!!!
These government creatures are scary. The next election can’t come soon enough. Pelosi/Reid/Obama and others of their ilk must be tossed OUT OF OUR GOVERNMENT.
I have more respect for a common thief than a government thief...............
Http://www.efoodsdirect.com/george here`s a good place to start.
Thanks. We can’t take our eyes of this one. The original bill was horrendous and we know it would end up unfunded liabilities like social security and medicare after their theft. Then 50 years later say it was never intended to be a savings account.
It can be hidden in the HC bill so watch for it.
I can see many Dem Congresscritters wearing tar and feather suits..............
Just what is a “Bakersfield chimp”?.......................
Retiree Annuities May Be Promoted by Obama Aides
Read the article. It's about whether the government should (or could) encourage people to buy annuities with their 401(k) assets to protect against volatility in the market and guarantee a lifetime income.
Of course, the issuers of annuities are more than happy to accept promotion by the government, because they make their money off the fees and the "float". But, there's not even a hint of confiscating assets.
However, I do agree with you: any attempt to do so would be met with a visceral reaction. Even the safest incumbent would be vulnerable.
On the other hand, I wouldn't have any problem if Social Security were gradually replaced by contributions to a lifetime annuity. It would be a real asset, and not subject to being spent by Congress on the latest pork-barrel project.
A congresscritter from Bakersfield?
A clarification: I'm not supporting the proposal referenced in the Investers.com article -- that those contributions must be made to a fund administered by the SSA.
I mean contributions to a real account, administered by a private company. I'd be OK with some prudent restrictions on how the money is invested, as long as it didn't mandate some percentage to be invested in government bonds.
To bail out the Staes’ pension plans, right?
Here you go. You can thank me later for introducing you to this one.
http://www.urbandictionary.com/define.php?term=Bakersfield%20chimp
Thanks, I saw that episode on Animal Planet, IIRC, about that attack last week...........
More to kick the can down the road until they retire.......
“No Man’s life, liberty, or property is safe while Congress is in session.”....Mark Twain, et al
Thanks, I’ll try them out.
Know anything about the “Berkey Light” that they’re advertising?
I want a Berkey, but I want a BIG Berkey... :)
PING! Very Important On Government Confiscation of Retirement savings.
Remember this:
The Obama Retirement Trap:
http://www.freerepublic.com/focus/f-bloggers/2449630/posts
Well it just got worse.PULL YOUR MONEY AND GET IT OFF SHORE.
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