Posted on 02/17/2010 5:40:59 PM PST by Kaslin
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 ...
I already have the option to go with an annuity at retirement. What they’re really saying is they want limit your choices to just T-bond based annuities.
Why am I not surprised.
Anytime a government sees a pile of cash, they immediately start looking for ways to get it.
I already have the option to go with an annuity at retirement. What they’re really saying is they want limit your choices to just T-bond based annuities.
This is a taking prohibited under the constitution, so I presume that Kennedy will go for it.
This would bring on a revolution.
The present administration and all who support it are thieves.
I don’t eat wagyu. You in DC can’t have the savings I have and build because you want my money.
I’ll burn mine to stay warm before I give it to a commie muslim from kenya.
LLS
Anytime a government sees a pile of cash, they immediately start looking for ways to get it.
Unless of course, it’s a big union pension plan. Then it’s untouchable, because they all earned it, unlike those rich folks with 401Ks.
It’s the only money left. I was waiting for something like this...
They are very clever. They seem to be applying more and more pressure to incite violence. Then.....martial law.
Who?
I’ll cash out, take the penalty and convert it to steel and lead.
Let me be the first to say....Norfolk-n- way.
The treasury dept wants my comments...where do I sign up to tell them to go to hell. Before I let these crooks get their paws on my cash I will take the 10% penalty and keep the rest.
Given what these characters did to Social Security, there’s no way in hell they’re getting their hands on 401Ks. They’ll have to pry it from my cold,dead hands.
If everyone hasn’t seen this coming, then they are blind or drunk. Maybe both. IRAs and 401(k)’s represent too much money that Uncle Sam doesn’t control and they don’t like that. The Dems are watering at the mouth to get control of this money in one big grab.
Hell, if they would pay off the debt, maybe I could understand it. Not like it or not fight it. But they will take this money and buy off those who blindly vote for them now.
This has been talked about for a while. Not surprised, just wondering what is next that the Fed will take?
Good thinking Slim.
Commodities are hot. ;)
I hope they pay attention....this could be the proverbial straw which breaks the camels’ back.
Heaven help us all.
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