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White House looking to creep into 401(k)s
NY Post ^ | 2/28/15 | Jonathon M. Trugman February 28, 2015 | 11:21pm

Posted on 03/01/2015 7:22:49 AM PST by Enlightened1

Under the false pretense of calling for new and tougher so-called fiduciary standards for financial brokers, advisers and retirement plan representatives, the White House once again horned in on Wall Street’s compensation formulas.

However, what the president surely knows is that a vast majority of retirement plans — IRAs and 401(k)s — are in simple fee-based products like mutual funds. The commission-based accounts are for those who prefer to direct their brokers in certain purchases inside some of their retirement products.

The key to the White House’s interference is in its nuanced language.

Currently, a broker may make a recommendation that must be “suitable” for retirement account assets such as 401(k)s and IRAs.

However, the president wants to take it a step further and mandate that it be in an investor’s “fiduciary best interest.”

The administration surely knows that commission rates and fees on Wall Street have never been better for the consumer, and to pretend to be able to offer even cheaper rates seems disingenuous.

It also opens a huge can of worms.

What if an investor who has been successful with Apple wants to buy 100 more shares of the tech giant for his or her self-directed IRA?

Does the administration really want a broker to interfere because in the broker’s opinion it isn’t in the “best interest” of the investor?

It’s all about control. It’s your money, America. The system functions quite well. Adding more pages of red tape will not improve performance, but it just may get your broker to drop your account, just as many credit lines were closed after Dodd-Frank passed.Come on, IRAs and 401(k)s are the few savings products that actually do work in this country for everyone.

IRAs and 401(k)s are personal retirement accounts, not government pensions. Please keep your hand out

(Excerpt) Read more at nypost.com ...


TOPICS: Business/Economy; Crime/Corruption; Government; News/Current Events
KEYWORDS: 401k; fee; ira; obama; obama401k; obamaretire; retirement; steal; tax; theft; wallstreet
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1 posted on 03/01/2015 7:22:49 AM PST by Enlightened1
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To: Enlightened1

They’re planning on stealing your 401k...under the guise of keeping you safe and protecting you. Keep taking it.


2 posted on 03/01/2015 7:26:11 AM PST by WKUHilltopper (And yet...we continue to tolerate this crap...)
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To: Enlightened1

The slow, deliberate creep of communism. This Thief-in-Chief is after it all. Watch your wallet or he will pick it dry.


3 posted on 03/01/2015 7:27:37 AM PST by HotHunt
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To: WKUHilltopper

That’s the end game alright. nyone who thinks this bunch is going to let a couple trillion dollars alone needs their head examined.

L


4 posted on 03/01/2015 7:29:03 AM PST by Lurker (Violence is rarely the answer. But when it is it is the only answer.)
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To: WKUHilltopper

http://www.freerepublic.com/focus/f-chat/3262609/posts

FEDGUVINC-—creeps into EVERYTHING

there’s no way they can leave trillions in savings alone.

you’d have better odds leaving crack and a pipe alone in a room with a crackhead and telling them not to touch it.


5 posted on 03/01/2015 7:32:47 AM PST by TurboZamboni (Those who make peaceful revolution impossible will make violent revolution inevitable.-JFK)
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To: WKUHilltopper

They have been planning and trying this since Clinton was banging interns in the Oval Office.


6 posted on 03/01/2015 7:35:55 AM PST by eyeamok
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To: WKUHilltopper

Next will be outright confiscation, with deserving money doled out according to our needs.


7 posted on 03/01/2015 7:36:19 AM PST by Eric in the Ozarks ("If he were working for the other side, what would he be doing differently ?")
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To: Enlightened1

U.S. treasuries is the only safe investment for the common people!/s


8 posted on 03/01/2015 7:38:41 AM PST by Rusty0604
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To: Enlightened1

Of course they are. The 529 debacle was a trial run to see how the public would react. Now they will just try a different marketing scheme since the first didn’t work. FUBO


9 posted on 03/01/2015 7:39:48 AM PST by goodwithagun (My gun has killed fewer people than Ted Kennedy's car.)
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To: Enlightened1
The author of this article misses the point. I noticed the same thing about many other articles on this subject that were posted in the last few days.

I'm sure Obama would love to implement an outright confiscation of every 401(k) and IRA account in the U.S., but these fiduciary standards are a completely different issue. What's happening here is that many brokers are effectively functioning as financial advisors for their clients executing trades in tax-deferred accounts, and this measure imposes the same standards on brokers that are put on registered advisors.

10 posted on 03/01/2015 7:46:11 AM PST by Alberta's Child ("It doesn't work for me. I gotta have more cowbell!")
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To: Enlightened1

The old reach around...your looking behind you so he doesn’t get the IRS after you and WHAM...he’s taken what you had in your front pocket.


11 posted on 03/01/2015 7:46:43 AM PST by oust the louse (The Democratic Party might as well be called the Death Party. Abortion & ObamaCare/death panels.)
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To: Enlightened1

Another case of SSDD (Same Sh*t Different Day). They don’t care which foot gets in which door as long as they get a foot (preferably two or more) in a door. They will then perform incredible acts of incomprehensible logic to contort the original meaning into something they can use to arrive at what they originally wanted but couldn’t possibly sell.


12 posted on 03/01/2015 7:47:56 AM PST by immadashell (The inmates are running the asylum.)
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To: WKUHilltopper
They’re planning on stealing your 401k...under the guise of keeping you safe and protecting you.

It's just like marriage - they gave you a tax break on it, so they own it.

13 posted on 03/01/2015 7:51:09 AM PST by Mr. Jeeves (Heteropatriarchal Capitalist)
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Marching to green!
Less than $6.4k to go!!

14 posted on 03/01/2015 8:03:20 AM PST by RedMDer (Keep Free Republic Alive with YOUR Donations!)
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To: Enlightened1

Argentina confiscated all 401k’s and then granted ALLOWANCES.

Same plan, here.


15 posted on 03/01/2015 8:09:47 AM PST by gaijin
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Comment #16 Removed by Moderator

To: Enlightened1

If the stealing of our money doesn’t wake people up, nothing will. All the guns, bullets, etc. will be worth nothing.


17 posted on 03/01/2015 8:34:11 AM PST by NTHockey (Rules of engagement #1: Take no prisoners. And to the NSA trolls, FU)
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To: Enlightened1

If 410ks are nationalized, we all know that a substantial number of people would rush to get the money out and take the penalty. Congress wouldn’t do such a thing, but president Nero would have no compunction against issuing an EO during a “crisis” under the aegis of the NDAA. In fact, he probably would just freeze the assets and not allow people to get their money out or just go for outright confiscation.
I really think that a military coup with Nuremberg trials of the federal criminals is the only way out. We can’t count on the people in the federal government to reform the federal government; the good guys aren’t strong enough, and the bad guys are in too deep. The criminals in the federal government, the globalists, and the banksters are pushing the envelope at an accelerated pace, and they are being rewarded for their crimes with more power and money. The constitution cannot be resurrected in this environment by political means; including, sad to say, article 5.
I realize that a reboot is risky, but we are approaching the time when doing nothing is worse. The window will close once the totalitarian state is firmly established.
Remember, the last trading day of this Shemitah year is 9/11/15.


18 posted on 03/01/2015 8:35:17 AM PST by grumpygresh (Democrats & GOPe delenda est. President zero gave us patient zero.)
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To: Enlightened1
Even if...

* Your 401k is with a Commission Based or Fee-Based retail establishment...
* This is an attempt to force everyone in the Industry to evolve into what is essentially the "Fee-Only" business model.
* Whilst the Fee-Only types may have the high moral ground forcing someone to change their business model is Un-American IMHO.
* This whole "Fiduciary" standard is a hot potato that never got resolved via Dodd-Frank, yet they are still at it, I wish our side had such stick-to-it-ness with something like a Flat Tax.

With all this...

* Not a mention that may 401k's are woefully inadequate with options in a ton of asset classes aka Mid Cap Growth for example.
* With the advent of Low cost ETF's, I could see many employers adopting a breath of them to head this Obama edict off at the pass.
* Whilst many employers are offering "Robo" type advisers it is not mandatory, nor should it be.

These last three items could be done via the Free-Market without regulatory intervention, it would take employers demanding more from their employers, and sometimes to keep good people they do it, it has happened before when great suggestions were made to HR in regards to 401k's.

19 posted on 03/01/2015 8:47:47 AM PST by taildragger (It's Cruz, Pence, or Walker. Anything else is a Yugo with Racing Stripes....)
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To: Enlightened1

You will find your nice 401k nest egg getting a very small bump and find it being equally shared by you and several other people.


20 posted on 03/01/2015 8:51:51 AM PST by Starstruck (If my reply offends, you probably don't understand sarca only ones we can gesm or criticism...or do.)
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