Posted on 12/05/2013 4:34:37 AM PST by bestintxas
In his first term, Obama managed to get his paws on health care, banking, energy, student loans, the auto business, and more. Now he has his sights set on your 401(k).
The left has had its eye on retirement savings for years, but so far takeover attempts have been rebuffed. One egregious attempt was the proposal, following the 2010 financial crisis, to "safeguard" retirement savings by requiring that they be rolled over into Treasury bonds. Had this legislation succeeded, it would have appropriated all or part of the retirement savings of millions of Americans. The funds would have been used to finance further expansion of government. In return, savers would have received a promissory note from the federal government similar that issued by the Social Security Trust Fund.
Needless to say, most investors were not keen to convert their savings into Treasury obligations -- or, to be more precise, into an unsecured note promising a return approximating that of Treasury bonds. That is because, as with every other endeavor, government's management of retirement savings (aka Social Security) has been a disaster.
Those who believe that Social Security has done a good job of investing their savings are greatly mistaken. Over the past 200 years, the real, inflation-adjusted return of the U.S. stock market has been 7%. Had one invested $100,000 in the U.S. market in 1802, one's total return after inflation (or that of oneself and one's descendants) would have been more than $100 billion. By comparison, investment in government Treasury bills would have yielded approximately $50 million.
(Excerpt) Read more at americanthinker.com ...
Whatever it is that does it, expect the claxons to be sounding and the Patriots to rise to defend their property.
“, while SS has so far ploddingly delivered its guarantees.”
You have got to be kidding.
First we have Clinton connive to start taxes SS on a means basis, effectively reducing the money you make.
Second, what Ponzi scheme ever undertaken has not faithfully paid back early investors only to come crashing down later as it is not sustainable?
The Democrat regaining control of the House. They [Democrats] initially took it up when they controlled both houses after the 2008 election. They became bogged down with obamacare and results the 2012 mid term election derailed their plans. They haven't forgotten about it.
bttt
And only those folks who have them are going to have to pay taxes when withdrawing that money, which has to be done starting around the age of 70.
If that money lands in a higher bracket, taxes are paid in that bracket. With baby boomers approaching that age, it's already a real sweet deal for the feds.
That was the excuse they used the last time. And gov’t employees with defined benefits were in lead of the charge. They claimed that private citizens had lost retirement savings and that they hadn’t because their benefits were guaranteed by gov’t contracts. I think they wanted to confiscate private savings to make up for their plan losses.
This argument is so absurd but so many people are uninformed they buy it. Hopefully, the pensions in Detroit will be cut enough that it will send a message that gov’t promises are not secure.
>>what will it take to trigger this?<<
IF Elmer Fudd confiscates our 401ks, there had better be millions of fingers on triggers. Or else, get fitted for chains.
All Ponzi schemes deliver their guarantees until they don’t.
Say, what?
Hey! you leave the playstations out of this! They’ve done nothing to you heh.
All kidding aside, I see it here a lot. I work in the oil and gas industry in Alberta as an electrician, and many young lads go out and buy everything under the sun. Nobody thinks to plan for down the road anymore.
Banks can already take your money...much more likely come the next bank bailout.
It’s not a conspiracy. In 2010:
The Honorable Hilda L. Solis
Secretary
U.S. Department of Labor
200 Constitution Avenue, NW
Washington, DC 20210
The Honorable Timothy Geithner
Secretary
U.S. Department of the Treasury
1500 Pennsylvania Avenue, NW
Washington, DC 20210
Dear Secretaries Solis and Geithner:
As members of the Republican Savings Solutions Group, we write today to express our strong opposition to any proposal to eliminate or federalize private-sector defined contribution pension plans, such as 401(k)s, or impose burdensome new requirements upon the businesses, large and small, who choose to offer these plans to their employees.
In the Annual Report of the White House Task Force on the Middle Class, Vice President Biden discussed at length the creation of so-called “Guaranteed Retirement Accounts, (GRAs)” which would provide for protection from “inflation and market risk” and potentially “guarantee a specified real return above the rate of inflation” — presumably at taxpayer expense. In the Report, the Vice President recommended “further study of these issues.”
The Vice President’s comments are troubling, insofar as they come on the heels of testimony before Congress from supporters of GRAs proposing to eliminate the favorable tax treatment currently afforded to 401(k) plans, and instead use those dollars to fund government-invested GRAs into which all employees would be required to contribute a portion of their salary — again, with a government subsidy. These advocates would, essentially, dismantle the present private-sector 401(k) system, replacing it instead with a government-run investment plan, the size and scope of which remain to be seen. This despite data showing that 90 percent of households have a favorable opinion of the existing 401(k)/IRA system.
In light of these facts, we write today to express our opposition in the strongest terms to any effort to “nationalize” the private 401(k) system, or any proposal that would dismantle or disfavor the private 401(k) system in favor of a government-run retirement security regime.
Similarly, and more recently, the Departments of Labor and Treasury have jointly issued a “Request for Information” regarding the “annuitization” of 401(k) plans through “Lifetime Income Options.” While we appreciate the Departments’ seeking guidance and information from all parties and stakeholders in advance of regulatory activity, we strongly urge that the Departments not proceed with any regulation in this area before they have carefully and thoroughly considered all of the information received.
More specifically, we urge that the Departments take no action to mandate that plan sponsors — often, small businesses — include a “lifetime income” or “annuitization” option if they choose to offer a 401(k) plan to their employees, or that beneficiaries take some or all of their retirement savings in such an option. Data shows that 70 percent of Americans oppose the concept of a mandated annuity or government payout of their 401(k) plan. On a more fundamental level, Congress should not be in the business of choosing “winners” and “losers” among retirement security stakeholders. Instead, we urge the Departments to make it easier for employers to include retirement income solutions in their savings plans and to help workers learn more about the value of their retirement savings as a source of retirement income. Finally, to the extent new mandates and bureaucratic red tape from Washington push small employers out of the business of offering these plans to their employees, we would submit such an effort weakens, rather than strengthens retirement security.
We appreciate your consideration of our views in these important matters and stand ready to work with you and the Administration to promote secure and adequate retirement savings for all Americans.
Sincerely,
House Republican Leader John Boehner (R-OH)
Rep. John Kline (R-MN)
Rep. Dave Camp (R-MI)
Rep. Sam Johnson (R-TX)
Rep. Dean Heller (R-NV)
Rep. Brett Guthrie (R-KY)
Rep. Michele Bachmann (R-MN)
Rep. Pat Tiberi (R-OH)
Rep. Bob Latta (R-OH)
Rep. Erik Paulsen (R-MN)
Rep. Lynn Jenkins (R-KS)
Rep. Ed Royce (R-CA)
Rep. Buck McKeon (R-CA)
Who is going to stop him?
The future confiscation of 401(k) plans has been obvious for at least 5 years.
I had a really great 401(k), but I took it on a canoe trip, and...
When the Dow goes from 16,000 to the 5,000 or so where it belongs, every retiree will come into the streets and vote - to be made whole. When the government promises to restore the nominal value of everyone's 401K to within 10% of its peak value as long as 80% of it is held in "safe, reliable" US Government securities, very few are going to shout "Thief!" and refuse to support the new plan.
I would REALLY like some “reporter” to question the bombastic Won about how he plans to “equalize” incomes for those who have worked and saved for 30-50 years, with those who are just starting.
(crickets)
wasn’t clinton going to do the same thing?
The way communists always do. Read a book.
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