7 votes

The Move is on to STEAL your IRA's and 401k's

I would close them out quick folks. Why is the government trying to enact laws that will kepp people from getting funds from their retirment accounts? Is it that the Government knows tougher times are ahead?


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401k is a sham

Tax-deferred retirement accounts are not always a good idea. Think about your current situation. You might have deductible mortgage interest, dependent children, pre-tax health plan premiums, etc. All of these reduce your tax liability. Now, fast forward to when you are 70 years old. If you've done things right, you no longer have a mortgage, you don't have dependent children, etc.

What this means is that had you been taxed on your investments, you would have likely paid at a lower tax rate than when you are retired and paying taxes on distributions from your 401k. I don't know about you, but I would like to live something other than a modest life once I retire. I want to vacation, cruise, have a luxury car, etc. To do all that, I think I would need my annual distributions to be somewhere around $100k (inflation-adjusted, to say the least). That would put me somewhere in the 49% tax bracket. So half of my retirement is going to Uncle Sham. Currently, because of all my deductions, I'm down around the 10% tax bracket. I think I would rather take the hit now than to take the hit when I retire. I would rather Uncle Sham kept his grubby hands off my retirement.

That being said, my employer contributes 50 cents on the dollar for each dollar I put in. So, I put in what I have to in order to get the free money. Beyond that, no way! I also borrow from my 401k since it's permitted where I work. That means, I borrow from my 401k, buy silver, and have loan repayments automatically deducted from my paycheck. This way, I haven't removed my money from investing completely. I also have to pay interest to my 401k (interest to myself) for the money I borrow. Basically, I make the financial gains that silver is earning, while making an extra 4.25% interest payment to myself and through repayment, my 401k is eventually intact.

Borrow from your 401k, buy silver with it, and then if the economy tanks, you have a portion of your 401k locked up in physical silver. No matter what the economy does, your repayment amount to your 401k stays the same. That means your 401k will be paid back in 2011 dollars while you hedge against hyper-inflation.


Are You Giving Tax Advice?

You seem to be giving tax advice. Taking one's money out triggers an immediate tax liability, I believe. It's not something I would do lightly.

What is your reasoning?

What do you think? http://consequeries.com/

is that tax advice? NO. that

is that tax advice? NO. that is you better take your 401 and get it in your own hands before the GOV.mint takes it advice. Are you familiar with Reagans executive order? Did you even read the article? I never opened up a 401 or an IRA just because of this. 3 to 4 trillion in an account that the Government sees as its money. If I had a an IRA or a 401k I would take the money, pay the penalty and put that money in silver and gold. That is what I would do if I had one. You will mnore than make up the loss on the penalty as silver and gold appreciate.

My question is this.. why would anyone in the government care about a persons IRA. It is not the Governments money or is it?

I agree completely

We never started on the 401k craze..basically if the government pushes it, then I know to stay away. I may not know why at the time but it always turns out right.

Losing a portion to taxes will be more than made up in the gains from having actual and physical gold or silver. Not to mention it can't be wiped away with a few strokes on the keyboard by some government office.

Keep up the good work my friend. Most of us are on the same page. Those that aren't...well we can point and laugh later and then help them buy some groceries.


due to importance.

"We have allowed our nation to be over-taxed, over-regulated, and overrun by bureaucrats. The founders would be ashamed of us for what we are putting up with."
-Ron Paul

Shoot this one down...


Sens. Kohl, Enzi Float Bill to Limit 401(k) Loans

Senators Herb Kohl, D-Wis., and Mike Enzi, R-Wyo., on Wednesday introduced legislation that would reduce the number of loans that participants could take out of their 401(k)s as well as giving employees more time to pay back a loan.

In introducing the bill, the Savings Enhancement by Alleviating Leakage in 401(k) Savings Act of 2011, or the SEAL Act, Kohl, chairman of the Senate Special Committee on Aging, said that “because of the difficult economic times, more and more Americans are treating their retirement accounts as rainy day funds by taking out withdrawals and loans from their employer sponsored 401(k)s and then are unable to pay themselves back,” which he said is commonly referred to as “401(k) leakage.”

While having access to a loan in an emergency “is an important feature for many participants, a 401(k) savings account should not be used as a piggy bank,” Kohl said.

Enzi added that “While our nation’s 401(k) retirement system is providing greater opportunities for individuals to save, there is still room for improvement. Recent studies have shown that money saved in retirement accounts sometimes 'leaks' out of the system and is never put back.”

"Give a man a gun, and he could rob a bank. Give a man a bank, and he could rob the world."

Thank you very much SIERRAHPBT...

We have to keep on this story big time.

Please keep posting any new stuff you find about this and I will bump-bump-bump it.

Sincerely, PawnStorm12

"We have allowed our nation to be over-taxed, over-regulated, and overrun by bureaucrats. The founders would be ashamed of us for what we are putting up with."
-Ron Paul