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It's Coming: The Government Wants to "Help Manage" Retirement Accounts

February 02, 2013

Many people, including myself, have discussed this threat over the past several years. The obvious concept is that when the government runs out of money, or they face a drying up in interest for its debt, they will come for the $19.4 trillion in American’s retirement accounts. It seems that day may be finally drawing near.

I stopped contributing to my 401k back when I worked at Bernstein, and I will probably now have to give more serious consideration whether I want to take the penalty and move the funds out of my retirement account entirely. I haven’t made any decisions, but will be watching closely.

I’m sure the government is just trying to protect your retirement account from terrorists.

From Bloomberg:

The U.S. Consumer Financial Protection Bureau is weighing whether it should take on a role in helping Americans manage the $19.4 trillion they have put into retirement savings, a move that would be the agency’s first foray into consumer investments.

“That’s one of the things we’ve been exploring and are interested in in terms of whether and what authority we have,” bureau director Richard Cordray said in an interview. He didn’t provide additional details.

Read more: http://libertyblitzkrieg.com/2013/02/02/its-coming-the-gover...



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"I'm more concerned about the

"I'm more concerned about the return OF my money than the return ON my money"
-Mark Twain

Might be good advise in this environment.

I've never had a Retirement Account

I don't like having limits on my money or threat of penalty if I need to withdraw it. I do have substantial money in a Money Market but since the interest I am making has dwindled to almost nothing I am slowly taking it out. I will no longer allow the banks to use my money practically for free. And in the process I am taking money out of the system.

Hit them where it hurts.

"Helping"

"The nine most terrifying words in the English language are, 'I'm from the government and I'm here to help.'" ~ Ronald Reagan

Personally, I blame Republican voters -- they could have elected Ron Paul as the nominee, who I believe would have beaten Obama in the general. Even my very liberal Democrat sister told me she would've gladly voted for Paul over Obama in the general but never Romney. She's not alone.

For those who are willing to pay the penalty (early withdrawal)

You might not be allowed to. I checked on mine and I'm not allowed to withdraw my money (even if I'm willing to pay a penalty) unless there were some extenuating circumstances:

1) In serious financial need
2) Are using the money as a down-payment on a house ("Let's prop up that housing market!"
3) You get laid off

robot999's picture

Yep, they've locked down your own money

so you cannot get to it unless THEY allow it. i would pay the taxes and penalties in a heart-beat to get my money out of their sights.

P.S. As for getting laid off, you cannot withdraw the funds if you have an outstanding 401k loan. Also, you cannot draw unemployment if you have a 401k loan. finally if you pay off your 401k loan, you cannot take another until a year after you've paid it off.

Who's money is it?

"Government is the entertainment division of the military-industrial complex". - Frank Zappa

State Law and Contracts

Unemployment is a state program, and rules vary by state, I believe.

I "volunteered" to be laid off, in part, so I could convert my 401k to a self-directed IRA (precious metals).

401k rules are set by the employer to a large degree, and they vary, also.

Participation in 401k's is entirely voluntary. You signed the contract to participate according to their rules when you signed up for the account. Either the advantages are worth it, or they aren't.

Since my employer matched my contributions, it was worth it to me up until it became clear to me that soon, even the 100% match would not be enough to overcome the loss through inflation, and that metals were a better bet. I rolled it over, paid the income tax, and now my metals can appreciate 10-fold without any tax on them.

That's not my only nest egg, however.

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

LoL Just like Buddy Bill

LoL
Just like Buddy Bill robbing SS to pay down the deficit.

Southern Agrarian

a.k.a. "running surpluses"

And Newt tried to take credit for this during the Republican primaries.

Me mum warned about this 20 years ago! Can ya believe it?

Yep. Me mum warned about this 20 years ago! Can ya believe it?

"I'm putting away savings, I'm doing the right thing. Wanna bet some day they'll say I won't be getting my social security?"

Yep. At the time, back in the late 80s and 90s, there were reporters suggesting that rich folk shouldn't get social security, and their reports had interviews with millionaires saying as much.

But now that they've blown every dime on perks and salaries for their bureaucrats, the government will just have to crack open the ol' piggy bank -- say bye-bye to social security, pensions, 401ks, IRAs, and so on.

But I still think this is a dirty way to go about it. The smoother, less obvious way to steal everyone's money is through Bernanke's QEternity policy of "buying" $80,000,000,000 a month in crapola.

He oughta ramp it up to $160,000,000,000 a month to stay ahead of the deficit curve.

Of course, the people will be unhappy when their wages (or SNAP cards) cannnot buy enough food. But at least they will blame the stores for gouging -- rather than the government for printing.

"Cowards & idiots can come along for the ride but they gotta sit in the back seat!"

bump

Thanks for posting.

LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
http://www.dailypaul.com/203008/south-carolina-battle-of-cow...
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15

You Bet!

I Thought Posting This Was Important Tom..

agreed

Keep up the great work!
Will bump another of your new posts in a sec.

LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
http://www.dailypaul.com/203008/south-carolina-battle-of-cow...
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15

Hey Tom! Your posts are terrific as well...

Lets go getem Tom!

For Liberty!

Brother -- this one needs/deserves a bump

http://www.dailypaul.com/273113/arizona-law-makers-launch-an...

For ... Liberty!

LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
http://www.dailypaul.com/203008/south-carolina-battle-of-cow...
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15