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?
I’m one of those people who have stopped contributing, for now. I had $28,000 six months ago and now I have $23,000. My husband says I should keep buying, but what if ALL my money dwindled away? He said that can’t happen, but if it DOES happen, in the next few years I would have NO money, right?
I guess I just don’t understand it that well, so I’m just not doing it!
I hate it. I really don’t know what they’re think. Probably the product of some some liberal thesis from Harvard or USC.
Bina,
According to scriptures history is repeating and when the money fails…nothing left but our bodies and land…look it up for yourself and you’ll see… The NWO aka Federal Reserve Mafia Bankers and Corporations is systematically stealing and redistributing the wealth of everyone in this country!
They did a practice run in 2001 and now they’re finishing their plan…The UNITED STATES is a Corporation and they are not going to be our Savior no matter how much marketing Obama does…read between the lies and look at the fruit…the deceptions are many …look to the WORD for understanding and knowledge…
Amen..
All I can say is,”Only if they want an overnite REVOLUTION!”
F-with MY MONEY and its ON!!!.
I earned it and saved and was smarter than most and backed out of the market two years ago as I saw the crash comming.
Oh,it will get way worse soon!!!.
After nationalizing the banks and health care why not the 401ks. People are not be left to their own decisions. Our fearless leader will protect us afterall.
I did a post on the healthcare part:
Health Care from the people who brought you the dmv
The New School for Social Research in NYC has been pushing this idea since the 1990’s, not the Harvard idiots (yet). One of their arguments, not mine is that 401Ks are unjust to the poor becuase the poor don’t participate and therefore reap the benefits. Also, most people mismanage their 401Ks and blow the money, something the govt. would never do of course. The govt. is desperate now and things will get worse, not better. Look for govt. at all levels to commit even more thievery than normal and for the great unwashed to believe the govt. propaganda; “It’s for your own good, it’s only fair, you will get it all back, it’s only temporary, we guarantee . . . ,” etc. etc.
401Ks are one of the last untapped sources of wealth for the govt. to steal, thev’ve already stolen everything else.
http://www.newschool.edu/nssr/newsList.aspx?id=24936
It’s the fall of rome people!!!! Keep buying ammo and keep your head down.
401k is going the way of the USA, down the toilet.
Why people insist on ignoring Schiff, Celente, Corsi, R. Paul and all the true patriots is beyond reason.
There is coming a second Revolution in this country. It will fracture “US” into smaller nations. I don’t know the catalyst, maybe like that kid that shot in Greece or like the Rodney King beating, whatever, that small event is waiting for its’ fuse to be lit.
Look what just happened in Greenwich CT., with people from the next town over protesting in front of Wall Street bloodsucking CEO’s mansions.
It is going to happen. People voted for change??
We are on the cusp!
I for one want to see all the Lobbyists put in front of a firing squad,
I even remember asking when I started my 401k at work. Well, do you think that since they stole away my social security and gave it to the welfare mother of 10 downtown that they’ll do it with my 401k?
And now they’re doing it. I can’t stop thieves from breaking into my house and now I’m not going to be able to stop the really big thieves from breaking into my accounts that was supposedly mine. What’s next, my bank account?
I really think its high time that a state secede from this Mafia style union and let the people that want to work and don’t want any government “help” go there.