401K Confiscation?

[Chris Fleming]

http://www.infowars.com/?p=5913&cp=2


If this actually happens, by that time 401Ks would have lost 95% of their value anyway. Still not good for the government to even be thinking these things.

Regardless, the thing I wish more people would understand is that putting all of your money in the stock market is a really bad idea. The vast majority don't understand what the stock market is all about and are certainly not investors because they own stock. That and fund managers and people who sell financial advice only have one thing to say: now is the best time to buy! No matter what the market is doing, they will say the same thing because that's how they pay their own bills.

[Methods]

I was told this was coming as well how much of a scam the 401 thing is anyhow. So when my company was bought I cashed mine out and took the 25% all the while investing in different kinds of accounts which accumalate3-10% interest - I would recommend this to anyone that has a 401k.

[Teazer]

From the link:
"testified before Congress last month, proposing that 401(k)s and IRAs be confiscated and converted into universal Guaranteed Retirement Accounts (GRAs) managed by the Social Security Administration."

Confiscated is a bit strong for what she said. She does advocate removing the tax break for 401ks & IRAs and additionally requiring a 5% minimum saving contribution to a gra. It wasn't specified, but I suspect if someone has untaxed money in the IRA etc and didn't want to roll it into the gra they'd just have to pay the tax penalty on it before withdrawing it. Sad to say I agree that most people are less than optimal investors and would do a lot better in a system with little choice.

Here's the testimony
http://www.house.gov/ed_workforce/testimony/2008-10-07-TeresaGhilarducci.pdf
& here's a quick overview interview
http://money.cnn.com/2008/04/22/pf/retirement/early_retirement.moneymag/

I'm not sure this is the answer, but at least they're discussing the upcoming problems with retirement saving in Congress at last.

[DeusTrismegistus]

Its peoples own problem if they didn't save and invest wisely. The government should not be in charge of making me invest for retirement.

[chud]

What she is proposing is outright theft. If they try to take my retirment account, I will be driving up to Washington with more than a bad attitude.

[Dmitri]

Its peoples own problem if they didn't save and invest wisely. The government should not be in charge of making me invest for retirement.

Now what sort of isolationist terrorist traitor talk is this?! If you are not with us, you are against us! Off to Gitmo with you!!

[DeusTrismegistus]

Its peoples own problem if they didn't save and invest wisely. The government should not be in charge of making me invest for retirement.

Now what sort of isolationist terrorist traitor talk is this?! If you are not with us, you are against us! Off to Gitmo with you!!

Its called self reliance. The US used to be all about it.

[Dmitri]

Terrorist, I tell ya!

"used to be" is right... but not any more.

[Teazer]

What she is proposing is outright theft.

In what way?

[TaoJoannes]

Dude.

She's just some chick with a crackpot scheme backed by a sleazy Republican congressman.

Nothing to see here.

[Chris Fleming]

What she is proposing is outright theft.

In what way?

So the government has to take over this too? For our own good right?

[Teazer]

I was just wondering what made it actual theft

[chud]

You're smart, figure it out.