Posted on 09/02/2010 12:54:07 AM PDT by Fred
The Obama administration appears to be proceeding with a novel way of financing trillion-dollar budget deficits by forcing IRA and 401(k) holders to buy Treasury bonds by mandating the placement of government-structured annuities in their investment accounts.
The requirement to invest private retirement assets has been cleverly buried within plans to create "automatic IRAs" that would mandate employer groups enroll all employees in 401(k) or IRA plans.
The U.S. Department of Labor released yesterday an agenda for an upcoming joint hearing with the Department of the Treasury scheduled for Sept. 14 and 15 on whether government life-time annuity options funded by U.S. Treasury debt should be required for private retirement accounts, including IRAs and 401(k) plans.
WND reported in January that Assistant Labor Secretary Phyllis C. Borzi and Deputy Assistant Treasury Secretary Mark Iwry are planning to stage a public comment period before implementing regulations that would require private investors to structure IRA and 401(k) accounts into what could amount to a U.S. Treasury debt-backed government annuity.
In a 2010 budget blueprint unveiled Feb. 26, President Obama proposed that employers sponsoring 401(k) plans or other defined contribution plans should be required to offer automatic enrollment in these plans, or in direct-deposit IRAs, as steps that would change the nation's voluntary retirement plan into a government-mandated nationalized program.
With the Treasury needing to sell another $1.4 to $1.5 trillion in government debt to finance the anticipated fiscal year 2010 federal budget deficit, the Obama administration is obviously scrambling to find ways to sell government debt without having to raise interest rates.
Under ERISA, the Department of Labor regulates approximately 700,000 private pension plans, with approximately $4.7 trillion in assets.
(Excerpt) Read more at wnd.com ...
Take my money and civil war starts.
They can “force” companies to offer this sham of an option.
They CAN NOT force individuals to invest in it!
If the Dems want to have a conversation about the pitfalls of “privatizing Social Security” vs. this hoax, bring it on!
I’m with you !
“WND reported in January that Assistant Labor Secretary Phyllis C. Borzi and Deputy Assistant Treasury Secretary Mark Iwry are planning to stage a public comment period before implementing regulations that would require private investors to structure IRA and 401(k) accounts into what could amount to a U.S. Treasury debt-backed government annuity.”
Just like health care, what part of the Constitution gives our elected elite the right to demand that I purchase a product to live in the U.S.?
I wonder if there will be a way to invest in insurance on these CDO’s? We could make gazillion dollars, or euros or some new currency, on this. Go read The Big Short for a full explanation.
On a serious vein, put your hands on my IRA and that is where you are going to leave them.
Question, how can you get out of 401 without taking a hugh loss due to the penalty placed on it for early withdraw by the gov’ment?
google 72t
They HATE the fact that some people worked hard during their lives and saved some money, and that some others lived a life of lazy uselessness, and now, poor things, have no savings.
So they WANT to take the savings and give them to the people who vote democrat.
They will find a way to do it by slipping in an amendment to an unrelated bill.
Once the fix is in to nationalize retirement assets, then means testing will redistribute them.
Imagine your pension fund (made up of your earnings you chose to defer or to save or to invest) being run by the people now running our economy into the ground. The economic geniuses who call tax cuts “spending” and unemployment checks and rampant govt pork spending “stimulus”
Imagine your pension being managed by the people who run the Post Office.
Retirees who own their own homes mortgage free, being “wealthy”, will get only half a mule. Actually a piece of paper entitling them to half a mule, payable over 10 years.
She took your IRA?................
Once you begin to hear that they are raising the penalties/fines/fees for early withdrawal, that’s right before they take your IRA.
Anyone who thinks that the govt will not eventually take over your IRA is being naive. Even if its 25years from now. Too much money.
Roger that!
Too late Mr. Gooberment. Worldcom disappeared my IRA a few years ago.
A real wealth killer if I ever saw one.
Stock market would dive.
“Take my money and civil war starts.”
They have been carefully crafting that monies collected by the feds are “theirs”, not yours. Things like “can we afford tax cuts” are designed to indoctrinate people to believe that the govt has legitimate claim to money(When actually it is not theirs but ours).
When it comes to the 401k and to IRAs, their premise is that if taxes have not been collected on them, they are not “yours” yet, so they see a legitimate claim to it.
That’s why it is better to have it “after-tax” rather than “pre-tax”.
I am 59 1/2 in 4 months and will pull as much as I can out of 401k.
No! They CAN NOT have it!
Gold has skyrocketed and the other stocks have gone down. Way down.
It’s the “Joe the Plummer” effect.
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