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From: GG Sent: Wednesday, February 03, 2010
"When plunder becomes a way of life for a group of men living together in society, they create for themselves in the course of time a legal system that authorizes it and a moral code that justifies it." -- Frederic Bastiat
THE GOVERNMENT WANTS YOUR RETIREMENT By Neal Boortz @ February 3, 2010
I've been telling you about this for a while now. This, to me, is one of the most dangerous schemes currently slithering through the crevices and dark spots of the Imperial Federal Government in Washington. What am I talking about? What I believe to be plans by the Obama administration to, in effect, seize your retirement funds and use them to finance their deficit spending. Remember ... there are more than $3 trillion dollars sitting out there in individual retirement, IRA and 401K plans. Politicians just cant stand the idea of this much money sitting out there in private investments ... out of the grasp of politicians. So .... Something needs to be done. And sure enough, something is going to be done. The Treasury Department and the Department of Labor were going to start taking comments on ways to promote the idea converting 401(k) savings and IRAs into annuities or other steady payment streams. Well you can finally take a look at this document for yourself:
Request for Information Regarding Lifetime Income Options for Participants and Beneficiaries in Retirement Plans (.pdf)
Here, I'll post a little to get you started:
The Department of Labor and the Department of the Treasury (the "Agencies") are currently reviewing the rules under the Employee Retirement Income Security Act (ERISA) and the plan qualification rules under the Internal Revenue Code (Code) to determine whether, and, if so, how, the Agencies could or should enhance, by regulation or otherwise, the retirement security of participants in employer-sponsored retirement plans and in individual retirement arrangements (IRAs) by facilitating access to, and use of, lifetime income or other arrangements designed to provide a lifetime stream of income after retirement. The purpose of this request for information is to solicit views, suggestions and comments from plan participants, employers and other plan sponsors, plan service providers, and members of the financial community, as well as the general public, on this important issue.
That's a lot of government-speak. Can you read between the lines? What is the real plan here? Behind this nonsense about "lifetime stream of income after retirement" language is a lovely little plan to force you to finance the Democrat's deficit spending. The plan is to play into the current economic fears. "Never let a good crisis go to waste." Remember the words of Rahm? The Democrats want you to question whether or not Wall Street is the right place to invest your money. Wouldn't you be safer if the government kept it for you? The government wants you to believe that it can do a better job of investing and managing your retirement than you can. And for a lot of people who believe that government is the answer, they may fine with this. It's not fine with me, and, I suspect, it's not all that fine with you.
Don't believe me? Here is how these agencies present their reasoning:
Accordingly, with the continuing trend away from traditional defined benefit plans to 401(k) defined contribution plans and hybrid plans ... employees are not only increasingly responsible for the adequacy of their savings at the time of retirement, but also for ensuring that their savings last throughout their retirement years ... In recognition of the foregoing, the Agencies are considering whether it would be appropriate for them to take future steps to facilitate access to, and use of, lifetime income or other arrangements designed to provide a stream of income after retirement.
Here is one of the questions asked in this document from the Treasury Department and the Department of Labor:
13. Should some form of lifetime income distribution option be required for defined contribution plans (in addition to money purchase pension plans)? If so, should that option be the default distribution option, and should it apply to the entire account balance? To what extent would such a requirement encourage or discourage plan sponsorship?
Okay, what is this question really asking? First, it wants to know if the government should FORCE you to contribute money to an income distribution option. Then the second part of the question wants to know if this should be the standard retirement option, unless you choose to also put your money elsewhere.
OK .. I'm a little disjointed here. Let me try to wrap up all of this up in one neat package.
Obama's budget is setting records in deficit spending. Obama is proposing borrowing every close to the amount of money that the Republicans borrowed in a single year .. but Obama is proposing borrowing that sum EVERY SINGLE MONTH throughout his term of office and beyond.
Earlier this week I told you of a story from the investment press which stated that investors now look at blue chip stocks like Coca Cola as better and safer investments than U.S. Government treasury certificates. China has signaled that it is not in the mood to buy many more U.S. government securities. This is how we finance our debt! If investors and other nations won't voluntary finance our debt, what does our government do? Well, our government does what governments always do. Fall back on its unique ability to use force to accomplish its goals. There's a problem here. We aren't going to force China to buy more Treasuries ... so where is the force to be applied? YOU, that's where.
The government is talking about some form of "lifetime income distribution" and "lifetime stream of income." (Isn't this what Social Security was supposed to do?) But just HOW does the government provide this "lifetime" income? Simple ... by FORCING you to take all or a portion of your retirement funds and invest them where China won't go; invest them where private international investors no longer want to go; invest them in Treasury Certificates. Oh yeah ... they'll probably come up with some fancy new name for some fancy new type of T-bill ... but the goal and the effect will be the same. You'll see your money seized by government and used to finance the insane spending plans of politicians .. Democrat and Republican.
Stay alert folks. The government has wonderful ways to couch this in language that seams harmless and innocuous. It's a money-grab. Nothing less.
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an original site comment By Randy W @ 02/03/10
I Don't Know What Made Me Think Of This. "For some reason the nasty, brutal conclusion of Mussolini came to my mind all of a sudden. Hm." http://home.comcast.net/~lowe9101/mussolini/d7.htm
Categories: Government Outrage Tags: 401k | government outrage | ira | private investments | retirement
Warning:
"He has erected a multitude of New Offices, and sent hither swarms of Officers to harass our people and eat out their substance." -- The Declaration of Independence
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