In other news this week, it’s being discussed by house Democrats to “overhaul the nation’s $3 trillion 401(k) system, including the elimination of most of the $80 billion in annual tax breaks that 401(k) investors receive”.
Since this system would eliminate the current tax exemptions that workers get when they save money into their 401k(s), workers and employers could no longer write off their contributions to these accounts.
The government would, in turn, for so kindly managing these accounts, give a ROI of 3% annually by investing the funds in government bonds, and a whopping (insert sarcasm here) $600 contribution match. And of course it’s guaranteed. You’re kidding, right? Currently the maximum amount an employee can contribute to their 401k, by IRS guidelines is $15,500 for those under age 50 and $20,500 for those over age 50. If their employer were to match them dollar for dollar and they put in the maximum allowed per year they’d end up with, on the low end, $31,000 for the year even if they only invested in cash. We all know that statistically the market has returned 10% on average since the crash of ’29. If you have an employer that doesn’t match dollar for dollar, but matches 1/4 to a dollar or fifty-cents on the dollar, you’ll still do better than the meager $600 that the feds want to pay you. Social security is already broken, and my generation won’t see any of what we put into it, so this sounds to me, like nothing more than another government sponsored plan- something else they can fuck up.
According to Investors Business Daily, this system has already been implemented in Argentina “under the ruse of ‘protecting’ Argentines from their own decisions, (because we all know that the government can better spend our money than we can) everyone will soon be forced into an involuntary pay-as-you-go program, like U.S. Social Security. Not only will the private assets be managed by bureaucrats, pension-holders will be paid what the government dictates. Not only will the private assets be managed by bureaucrats, pension-holders will be paid what the government dictates...Its stock market lost 23% of its value in two days, for a 57% loss since January. The losses spread to other markets in Brazil, South Africa and Spain…Markets don’t like expropriation of private property — including savings. And this takes away a key source of private capital. Moreover, one quarter of private pension assets were by law invested in Argentine stocks, making up about a quarter of the bourse’s value. So the seizure of pensions amounts to government ownership across the entire private sector.”
I don’t like it either. Really people, do you think the government is better equipped to handle and spend the money you earn and the money you save better than you are?