Sound the Alarm: New Obama Regulations Will Push Private Retirement Savings Into Government Accounts

Townhall ^ | 4/08/16 | Katie Pavlich

[Libloather]

If you thought Obamacare was terrifying, just wait until you read about what President Obama's regulatory agencies are planning to do with your retirement savings.

According to an alarming report in the Wall Street Journal, government regulators at the Labor Department will be implementing new rules at the end of the year that will eventually force private retirement investments into government accounts. How? By making private investment options, specifically IRAs, too burdensome, a liability and expensive. Bolding is mine.

[pollyshy]

bfl

[LambSlave]

Don’t doubt you at all, I actually planned my retirement according to your scenario happening; it was obvious to me that SS and medicare were going to put any tax-favored retirement accounts at risk. Starting 18 years ago with that measly $20k of savings, I built a small fortune— most of my retirement savings is now post-tax and liquid. I can move it offshore in four days if need be. Yeah, I have a 401k and an IRA as well, but now it is just one small piece of my portfolio, and I can eat the tax loss if the future looks grim and cash it out. My point is simply that THIS law of itself is actually not a bad thing; all people who invest our money should have our best interests at heart and not use our finances to rape us for profit to feed to their preferred clients— which is exactly what happens now.

[wildbill]

My guess is they know the government is in trouble over the debt and to pay off entitlements they need cash.

So they take your retirement accounts into a government fund and then take the cash, leaving you with an I.O.U. the same way they took all the Social Security money from that fund and used it for general expenditures in the budget.

[VTenigma]

The law of supply and demand encourages investment advisors to have your best interests in mind. If you do your due diligence the cream rises. More government intervention doesn’t insure that, it only reduces your choices by driving out small advisors and empowering the mega house that are insulated from those regulations.

P.S. lambs get slaughtered.

[RaceBannon]

if he’s a strumpet, all he can do is repeat lies and say how he hates Cruz but loves hillary supporters

[Political Junkie Too]

It’s a very short hop, skip, and jump to regulations empowering the feds to manage your retirement and eventually controlling your 401k under federal authority. Presto changeo look at that, the feds have now magically found $14 trillion. Aren’t they wonderful? National debt nearly Z-ed out in a couple regulatory moves. Your money is no longer yours but the feds to do with as they see fit.

My 401(k) is mostly in corporate stock. Wouldn't this be a government takeover of private corporations if they force shareholders to move their accounts to federally managed agencies? They can't just liquidate these holdings to pay the debt without affecting the capital cashflow of our corporations.

-PJ

[SkyPilot]

The Tribble vs. Edison decision almost guaranteed that IRAs and 401Ks will be seized by the government.

Ramifications of Supreme Court decision on 401(k) fee lawsuit run deep

‘Kiss your pension fund goodbye’? Economist warns government could seize 401(k)s

As I said, most people don't even want to contemplate this happening, much less deal with it.

Government is preparing to seize 401(k) retirement plans

My guess has been that the government will wait for the next crisis to makes its next move. Given that they are already turning the gears, I may have underestimated their greed.

But given that IRAs, 401Ks, and other retirement plans are entrenched with the stock market, and the stock market is a massive, massive bubble of hot air caused by numerous QEs and other shenanigans, the future is ripe for the government to take "extraordinary measures" during the next crash.

[Doogle]

Odungo is dead set on making your life miserable

[Flick Lives]

Sounds like when the Feds threatened banks with suit and forced them to issue mortgages to minorities that had no hope of paying off the loans.

Home price bubble, unavoidable default, valueless foreclosures, Real Estate crash.

---

...then the government turns around and blames the banks.

[Doogle]

...and electronic bug sweep

[Moonman62]

This isn’t just Obama. The DC crooks have been eyeing private retirement accounts for years. Now that they’ve stolen all the Social Security money it’s time to break into a new lockbox.

[outofsalt]

"myself; waited until I had $20k.."

I spent all my money on booze, boats and broads. The rest, I wasted.

[SkyPilot]

So they take your retirement accounts into a government fund and then take the cash, leaving you with an I.O.U. the same way they took all the Social Security money from that fund and used it for general expenditures in the budget.

Exactly.

When the EBT riots happen, the moans and the cries of the retirement savers will be drowned out in sea of madness. Those who don't play ball will have their Social Security, health care, taxes, and assets tampered with and threatened.

[SkyPilot]

I thought that for a time. Now, I just think that people will be angered and depressed, but they won't launch an insurrection. A few fools will even welcome it, believing that they "bonds" the goverment will "guarantee" is a good thing.

Again, I think they will make their Big Move when there is a financial crisis, and the bloated markets tank 30%, 40%, or worse.

[Political Junkie Too]

Odungo is dead set on making your life miserable

It's about taking what someone responsibly saved for 45 years, and giving it to the 15 year old child from a 15 year old mother from a 15 year old grandmother.

-PJ

[SkyPilot]

Don’t you love it when they come for something that you worked hard for?

With a few exceptions (like the military), government performs horribly. It rewards the incompetent, the lazy, and the selfish.

The takers now outnumber the makers. With every passing day, more Illegal Invaders squat in our nation. The middle class is dying, and the pace of death is accelerating. Small businesses are hemorrhaging.

[CapnJack]

Don’t forget 529 Collage accounts.

I’m sure they have something in their bag of tricks for 1+ Trillion in those accounts.

Especially if they want to make college “free” for everyone.

[jsanders2001]

< If you thought Obamacare was terrifying, just wait until you read about what President Obama's regulatory agencies are planning to do with your retirement savings.

Steal them faster than Cypress bank for the "good of all"?

[Smokin' Joe]

If you can't find some place to put your IRA, the next step is to pull as much as you can out--in cash. How much cash exists? (Not enough to cover that bank run.)

Nothing like kicking the last of the support beams out on the way out the door.

Bill Bonner just might be right (again).

[Bulwyf]

It’s the same situation all over, something has to give, and soon.

This only ends one of two ways.

That’s of course excluding the second coming, that would end a few things top, but kick off some other events.