What’s In Store For Your 401(k)?
Nov 6, 2008 Political
…Or as Congress would ask; What’s in your wallet?
Socials Security has been a disaster. The money that people put into it is pooled together and then redistributed. Regardless of how much one makes, there is a cap as to how much one can receive. One of the problems is, the money is not put into an account in your name. It is put in the general fund and Congress spends it. Then, every four years Congress cries about Socials Security going bankrupt. If a person dies then the money is not passed on to heirs. There are some benefits but basically the money goes to others who did not die. If a single person works for 40 years and dies before reaching retirement age then all his hard work pays for someone who outlived him.
The 401(k) retirement was set up so that people could save money for retirement. The money is theirs and they would be able to use it for retirement. Those who saved more would be able to retire a bit better off than those who did not save or saved very little. There is a tax benefit to contributing as the money is tax deferred and reduces taxable income.
This is not good for the Democrats because they are losing 80 billion dollars a year because of the tax break. There is now a plan to forcibly take your 401(k) money and put it in your Social Security “account” and then pay that out to you when you retire. This will allow the government to pool your money and redistribute it as it sees fit. If you were fortunate to put away a great deal of money you will retire with the same amount as someone who paid much less. The government will decide how you get to live your retirement years. Rush Limbaugh explained the plan, as it is right now. I heard the audio of the person he discusses and she said exactly what he reports.
She wants to basically eliminate the 401(k), and the way she wants to do it is she wants to go to people who have a 401(k), who have seen its asset value plummet because of the market plunge. So she wants to go back to August levels. Everybody that has a 401(k), we’ll take you back and we’ll give you money. We’ll restore the value. The government will. We’re just going to print some money here, and we’re going to restore your 401(k) to its August amount. Then we’re going to take it. We’re going to take your 401(k), and we will put it in your Social Security account that the government is monitoring for you, and we will invest every year 3% in government bonds. We’ll buy government bonds so that your 401(k) will grow at 3% every year adjusted for inflation. The most that you will be able to contribute to your 401(k) every year is 5% of what you earn.
Read the rest of the article and see how things will work. This is highly irregular and amounts to nothing more than theft. It is a socialistic policy designed to redistribute wealth and it should cause alarm for anyone who is saving for his future. The moochers out there probably can’t wait to get another piece of your earnings so they will like it but this is pure evil.
Keep a close eye on this. If they pass legislation to confiscate your money then I recommend you see a broker before they implement it so that you can close your account and put it somewhere where it will be protected from the thieves in DC. There is probably a penalty associated with early withdraw but I am willing to pay it to move my money to other investment vehicles so that I will have what I earned when I retire.
People should decide on their own investments and they should not have to worry about their government confiscating their money. This is what they do in Socialist countries and it keeps the masses in poverty while government elitists live like kings. Social Security should be abolished and people allowed to decide where their money is invested.
We get to decide how to save and how we want to retire. It is up to us to provide for ourselves and our families. It is our decision as to how much we want to have when we retire and our future should not depend on a government bean counter deciding how much we need to live.
I don’t know if Obama will buy off on this but given he is a Socialist and wants to spread the wealth, I have no doubt he will be more than happy to take your money and spread it around.
Our future should be based on our own sound decisions and not those of people who do not know what fiscal responsibility is. You know better what to do with your money than they do.
You can’t rob a bank to get money so why should they be allowed to rob you to improve their flow of cash?
Tags: 401k, confiscation, Congress, robbery, social security, taxes