Your 401K...or theirs?
Does anybody take seriously the reports that the government is actually doing studies to consider nationalizing all pensions, 401K's, IRA's, etc. and replacing them a government IOU similar to social security.
Wonder if Obama would go along with this.
The government is looking for every available source of revenue. The latest definition of rich is now down to $50K, this comes from Obama land. As they have done with SS benefits under Clinton, if someone has income they will look to extract their share of your hard earned wealth even though you may have been previously taxed.
They are again punishing those who mind their assets & do not live beyond their means.
I haven't looked into it because I am not looking at my 401k again until June. But I did hear something about the government proposing to insure 401k's.
Originally Posted by Goose
I do not understand the full nature of that, but what I heard along with that is that the banks were not fond of the idea because the interest on the smaller accounts would be minimal compared to what could be gained from a 401k.
If I am off in left field I plead ignorance. :)
I would be interested to hear from someone who knows though.
One news broadcast I heard involved the Govt taking them over, limiting the interest to 3% an then paying them back to the owner as part of the SS check, with tax taken out on the interest.
From what I understand, your 401k would be placed under control of the government and invested in government bonds with a 3% return rate. At the time of retirement, you would get one check from the government that would include your Social Security and your 401k. There is also talk of eliminating the pre-tax contribution that currently exists. At your death, your heirs would be entitled to 50% of your 401k value and the government would pocket the rest.
Sounds just like good old socialism at it's finest. I wonder how long it would take for the government to squander all their new found wealth and bankrupt the system just like they have done with Social Security.
This is all based on a plan presented to congress by a Teresa Ghilarducci. I have not read nor do I understand the plan. I don't favor making changes to 401k laws, I have a self directed IRA that my company can put up go 25% of my income into each year, and I see that plan plus social security replacing 100% or more of my pre-retirement income. I would be seriously upset if after working all these years to save for retirement if the government pulled the rug out from under me.
Here is this lady's website. You can find and read her plan there:
What really gets my goat is to hear that congressmen refer to tax breaks for IRA contributions as government investment. What they need to understand is that these are only deferred taxes, and that taxes will be paid on the money when it is withdrawn after retirement.
A link to a discussion on this subject:
I am hoping they give a one time out thing with little to no penalties on early withdrawal for those wishing to not participate in such a program. I will take my chances investing my own money or burying it in the back yard before I will give what is left of my 401 to the gooberment. The way they are trying to sell this is to reinstate the value to what it was in August. Read that giving those of us who have 401’s money from those of us who pay taxes. Not sure how that works exactly, because pretty much anyone who has a 401K must be working and paying taxes in the first place so the government is going to give us back the money lost since August by using our tax money….what good guys they are. I do however find the reinstatement of the August value to be hard to believe because why would they want to give the “rich” anything. Could there be a limit on the amount they roll back to the August date to keep someone with 500K in their 401 from getting more than someone who has 5K in their 401? Nationalization SUCKS!!!!!! Gold and guns my friends, gold and guns…..
Originally Posted by thunderdog
Originally Posted by Buzz
Haven't you been an advocate on this site for Obama for the past few months?
Sadly we've reached the point in this country where it's every man for himself. You simply must try to protect your 'stuff' from those in government who want to make it their 'stuff'. I would certainly want to opt-out of letting the government steal my pension.
I suppose President-elect Obama would call me selfish.