Posted on 02/26/2010 1:09:19 AM PST by Lexluthor69
There is no question but that The Obama Regime has plans for your savings. Obama’s Treasury Department and even the Labor Department are already investigating "the conversion of 401(k) savings and Individual Retirement Accounts into annuities or other steady payment streams."
Ok, let me see if I can break it down for you.
What Obama is planning to do is: Take you savings, the money you have squirreled away for your retirement in 401-K’s and IRA’s, and hand you an IOU with which they will promise to pay you a small annuity each month of your retirement.
(Excerpt) Read more at silentmajority09.com ...
What to do with already-existing IRAs?
I’d started saving for a “guaranteed tuition” program but then I thought, to hell with this, the gov’t is always making great promises then reneging later. When I tried to get the money back OUT, what an ordeal they put me through. They didn’t want to release it.
In fact, when I needed several grand for something at the bank, they treated it as a big ordeal even though it’s MY money, asked me why I needed it (I was buying a vehicle).
The long story short is these establishments will TAKE your money, you ever getting it back out easily is another story altogether.
What about real estate purchases in IRAs? I think the solution is to take out as much IRA as you can and pay your 10% penalty, seems a lot better than a “government promise”!
Anyone who has $200,000 or more in their IRA’s should start researching alternatives. The government needs money, and the IRA’s are a large pool of money.
That’s what big bloated governments do. They have become so used to feeding at the taxpayer expense they do not know how to do otherwise. We need to rid ourselves of these career politicians and find some fresh blood.
Yeah, I wouldn’t feel to comfortable right now if I was close to retirement. I still have a few years left to save and gold is starting to look real good.
401K’s and IRA’s are, if you think about it, nothing more than IOU’s issued by banks and insurance companies. You will just be getting cheated by a different set of con artists...
Zer0 is on the path to becoming irrelevant. There is no popular support for Zer0’s insane agenda.
Some of the annuities allow investment in mutual fund type accounts, as well as guaranteed accounts. Since it is a rollover, there is no 10% penalty.
Also, consider variable Life Insurance. You pay in enough to cover term Insurance, and any extra is invested in mutual fund type accounts and guaranteed accounts. Later when you need the money, take out a loan, at a low rate of interest, which doesn't have to be paid back. It is the insurance industry's answer to buy term and invest the rest.
Then there's gold and silver etc. - trouble is the entry point on that was a while back it's pretty expensive now.
Buy real estate. It's at a low price. If you live within 60 miles of a metropolitan area it should at least double in value in the next 10 years.
LOL. If nothing else, how about, If you have room, consider planting fruit trees, and berries.LOL It will reduce your food bill, use up CO2, and taste better than grocery store produce.
This has happened before. After the communist take-over in Russia, Lenin had all private savings confiscated. It didn’t increase his popularity (if there was ever such a thing in the first place) but that was no problem or obstacle as he was in charge by then already.
For your information, the next step was the removal from society of all individuals that didn’t support the glorious socialist ideal or could be suspect of such....
Retired early 5 years ago, to take care of my father, so he wouldn’t have to go to a nursing home. Used a lot of my savings taking care of him, and some credit card debt too.
Slashed our budget and started paying down debt before the crash, but just not sure I will get enough done before catastrophe, but we’ll see. I too can’t afford to take a lot of risk now.
It isn’t the 10% penalty that is the deterrent. It is that all of the 401k or IRA counts as income for that one year if you take it out all at once.
So you have the 10% penalty, plus the marginal Fed income tax rate which might be 35% if your 401K is worth hundreds of thousands of dollars, plus the marginal State income tax rate like in CA where it is 10%.
So if I have to withdraw my 401K and IRA all at once, I’ll be left with only 45% of my money. If I can take it out slowly over the next 40 years, I won’t owe any taxes at all because each year’s withdrawn amount will be less than my itemized deductions.
It already started when Zero slapped another trillion on the deficit.
This was proposed by a Harvard friend of Obama’s before the election and was a hot topic then.
Given the circumstances, I am not surprised to see this proposed in reality.
The gov’t will “reset” the value of your 401K back to pre-Oct 2008 levels as the hook.
That is so true my friend. That's why you need a fair amount physical gold and silver in your possession. Otherwise, all you have are pieces of paper, telling you SOMEONE OWES YOU YOUR MONEY.
JD, it would have been nice to give us the BusinessWeek link.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.