The Government Generously Offers To Help You "Manage” Your Retirement Account

zero hedge ^

[Perdogg]

Via Michael Krieger of Liberty Blitzkrieg blog,

[ZH: We have discussed this threat over the past several years (must read).] The obvious concept is that when the government runs out of money, or they face a drying up in interest for its debt, they will come for the $19.4 trillion in American’s retirement accounts. It seems that day may be finally drawing near.

I stopped contributing to my 401k back when I worked at Bernstein, and I will probably now have to give more serious consideration whether I want to take the penalty and move the funds out of my retirement account entirely. I haven’t made any decisions, but will be watching closely.

I’m sure the government is just trying to protect your retirement account from terrorists.

From Bloomberg:

The U.S. Consumer Financial Protection Bureau is weighing whether it should take on a role in helping Americans manage the $19.4 trillion they have put into retirement savings, a move that would be the agency’s first foray into consumer investments.

That’s one of the things we’ve been exploring and are interested in in terms of whether and what authority we have,” bureau director Richard Cordray said in an interview. He didn’t provide additional details.

The bureau’s core concern is that many Americans, notably those from the retiring Baby Boom generation, may fall prey to financial scams, according to three people briefed on the CFPB’s deliberations who asked not to be named because the matter is still under discussion.

The Securities and Exchange Commission and the Department of Labor are the main regulators of U.S. retirement savings vehicles and funds. However, the consumer bureau — established by the 2010 Dodd-Frank Act — sees itself as a potential catalyst for promoting a coherent policy across the government, the people said.

[oldfart]

“We will be like Zimbabwe if people don’t wise up by the 2014 election.”

I think more and more people are beginning to think we won’t be able to vote our way out of the mess we’re in. Take your money out of the 401(k), pay the penalty and buy hard goods... things that will be valuable even if (when) the economy goes into the tank. My wife (a non-drinker) is stockpiling wine. I just bought some tobacco seeds. There are “other” things we don’t talk about too. We have seven people living in this old house and all but the two grandkids (2 and 6 years old) shoot well. I sincerely hope we’re not tested but if we are, I also hope we pass the test.

[Biff55]

Unless your wife’s storing high-end collectible wine, they won’t last forever. White wines might start turning 1-2 years after bottling. Reds might start turning bad after 3 years. (I work part-time at a winery.). Your mileage may vary, but just be aware.

[1010RD]

They don’t know what authority they have? How vaguely legislated is their mandate? If only we had a left that loved the Constitution.

Consumer Financial Protection Bureau = Coming For Profits, Bub.

[EVO X]

Take your money out of the 401(k), pay the penalty and buy hard goods..

It doesn't make any sense if you have real money in it. The object of the game is to pay the least amount of taxes as you can. A working stiff Californian would end up paying close to 50% in taxes and penalties on cashing in a 100K IRA. A high roller would end paying 60% if not more. The way to go would be a 72T distribution.

[Mouton]

Gee, the government already 16 trillion in debt and climbing in charge of one’s retirment accounts, what could go wrong??

[VRW Conspirator]

Just like they protected people who had money parked at MF Global?

Bingo! That is the event that set Ann Barnhardt off the hook. She rightly observed that Corzine took money out of the accounts that were not his to take (~$1billion?) and the guy is walking the street and our Fed-Gov is letting him walk.

Then add to that what happened to the bondholders at GM. These bahstids in the Fedzilla will come for the 401k's and retirement accounts sooner or later. They will say they won't and say they won't, and then one day you will here that great sucking sound.

[glorgau]

How about a barrel of whiskey? It usually bets better with age and won’t go bad for a loooong time.

[Tench_Coxe]

This is why they’re coming for the guns first.

[meyer]

"The bureau’s core concern is that many Americans, notably those from the retiring Baby Boom generation, may fall prey to financial scams,..."

You mean scams like Social Security?

Fact is, the government itself is a financial scam!

[Cheerio]

You didn’t fall prey. You were coerced.

The LIES the Fed Gov told us back in 1936 ....

TAXES

THE same law that provides these old-age benefits for you and other workers, sets up certain new taxes to be paid to the United States Government. These taxes are collected by the Bureau of Internal Revenue of the U. S. Treasury Department, and inquiries concerning them should be addressed to that bureau. The law also creates an "Old-Age Reserve Account" in the United States Treasury, and Congress is authorized to put into this reserve account each year enough money to provide for the monthly payments you and other workers are to receive when you are 65.

YOUR PART OF THE TAX

The taxes called for in this law will be paid both by your employer and by you. For the next 3 years you will pay maybe 15 cents a week, maybe 25 cents a week, maybe 30 cents or more, according to what you earn. That is to say, during the next 3 years, beginning January 1, 1937, you will pay 1 cent for every dollar you earn, and at the same time your employer will pay 1 cent for every dollar you earn, up to $3,000 a year. Twenty-six million other workers and their employers will be paying at the same time.

View the original Fed LIE in it's entirety at http://www.ssa.gov/history/ssn/ssb36.html

as well as this excellent read "Social Security deceit" by Walter E. Williams, Feb 23, 2005 found at http://townhall.com/columnists/walterewilliams/2005/02/23/social_security_deceit

[Cheerio]

You didn’t fall prey. You were coerced.

The LIES the Fed Gov told us back in 1936 ....

TAXES

THE same law that provides these old-age benefits for you and other workers, sets up certain new taxes to be paid to the United States Government. These taxes are collected by the Bureau of Internal Revenue of the U. S. Treasury Department, and inquiries concerning them should be addressed to that bureau. The law also creates an "Old-Age Reserve Account" in the United States Treasury, and Congress is authorized to put into this reserve account each year enough money to provide for the monthly payments you and other workers are to receive when you are 65.

YOUR PART OF THE TAX

The taxes called for in this law will be paid both by your employer and by you. For the next 3 years you will pay maybe 15 cents a week, maybe 25 cents a week, maybe 30 cents or more, according to what you earn. That is to say, during the next 3 years, beginning January 1, 1937, you will pay 1 cent for every dollar you earn, and at the same time your employer will pay 1 cent for every dollar you earn, up to $3,000 a year. Twenty-six million other workers and their employers will be paying at the same time.

View the original Fed LIE in it's entirety at http://www.ssa.gov/history/ssn/ssb36.html

as well as this excellent read "Social Security deceit" by Walter E. Williams found at http://townhall.com/columnists/walterewilliams/2005/02/23/social_security_deceit

[TheRightGuy]

but there isn't any on the open market anymore. My .22LR have appreciated 500% since I bought them

what u b smokin'? just last week i picked up 500 rounds of cci mini-mag .22lr for 7.99/100 ... same price as two years ago

[JRandomFreeper]

I bought mine in 1998. Cases of 'em. Best investment I ever made.

/johnny

[LibsRJerks]

Oh, I love it ....someone from the “bureau” is “concerned” about me and my money.

[The_Media_never_lie]

You are certainly correct not to trust them. Never trust them. Trust your neighbor, but not your govt.

If they were to do this under whatever pretense, it would be theft and would lead to very, very serious consequences.

What I am saying is don’t listen to doomsayers who would encourage you to take a hit and miss out on gains a 401k IRA can provide.

[Neoliberalnot]

Sound advice. Unlike a house, land is an appreciating asset that also provides income and is useful for living at any level.

[VanShuyten]

Don’t get barrels of whiskey. Buy bottled whiskey. Barreled whiskey loses alcohol over time - the “angels share” - as it evaporates through the wood.

[Carry_Okie]

I have wondered the same thing myself. I wonder how much gold and silver are worth in areas where mass famine is happening.

Gold, only if somebody will take it. Silver has a crisis use as an antibiotic.

[SunkenCiv]

Thanks Perdogg.

The obvious concept is that when the government runs out of money, or they face a drying up in interest for its debt, they will come for the $19.4 trillion in American’s retirement accounts. It seems that day may be finally drawing near.

This is one of those continual drumbeats that is just around to churn some business -- the gov't NEVER runs out of money, or to put it another way, has RARELY not run out of money, and as we've seen, has no problem printing more. This latter has been the case since the amount of the national debt (thanks to decades of Demwit rule) exceeded the value of the precious metals reserves held by the government, and the supposed silver standard came to an end. The last silver certificate bills had been printed in the 1950s, replaced by the federal reserve notes we use today.

[SunkenCiv]

U.S. National Debt Clock (thanks RightWhale for the link):

365 days x 100,000,000 per day = $36,500,000,000 per year...

• "If we stopped spending any more money today... ZERO DOLLARS SPENT BY GOVERNMENT... and starting paying off our debt at 100 Million dollars a day... it would take 389 years to pay off the debt (governmentgonewild.org)... not spending another dime ever!" -- LibLieSlayer