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Should the government take control of your 401K?

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Robert Williams

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The democrats in congress are making plans to stick their fingers into the 401K plan laws and do some major stirring. I think everyone who has a 401K should pay very, very close attention to what they're up to. The fact that they're showing a real interest in the 80 billion dollars they feel they're "investing" by allowing us to have tax breaks for our 401K investments is a red flag to me.

 

The language is couched in terms of "minimizing the losses of people who have 401K" plans, but reading the whole part and parcel of what they've got planned, I think there's a little more to it than that.

 

"

"We've invested $80 billion into subsidizing this activity," he said, referring to tax breaks allowed for 401(k) contributions and savings.

 

With savings rates going down, "what do we have to start to think about in Congress of whether or not we want to continue and invest that $80 billion for a policy that is not generating what we ... say it should?" Mr. Miller said.

 

Congress should let workers trade their 401(k) assets for guaranteed retirement accounts made up of government bonds, suggested Teresa Ghilarducci, an economics professor at The New School for Social Research in New York.

 

When workers collected Social Security, the guaranteed retirement account would pay an inflation-adjusted annuity under her plan."

 

Call me cynical but I think this has a lot more to do with converting 401K funds into government bonds that congress can spend than anything else.

 

 

http://www.investmentnews.com/apps/p.../REG/810079894

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I see.... at least it's not flying under the radar. We need to keep this one under a microscope because I don't want the government controlling my money. I've already paid more into social security than I'll ever see and damned if I want them to keep stretching my retirement age out until I get none of my 401K back, either.

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It would seem that the discussion is that they are trying to stop people from loosing massive amounts of money from their 401K's and at the same time eliminate 80 billion in tax breaks.... I don't see any magic wand here that will save people money and allow it to grow either......

 

My honest thought here is that if people invested correctly with their 401K they would have had most of their money in a safer zone than stocks if they are close to retirement and if they are not close to retirement(like myself) you don't worry about your 401K. Stock markets go up and they go down and at some point the market will rally again.

 

I kinda think this reaction/discussion is coming from sheer panic. It's basically the same type of reaction you get from people who sell at the bottom and never get back in for the ride and end of loosing it all.

 

I think our markets need more regulation for sure but I don't see any real answers in what is being thrown out.....We'll all be watching this.....

 

John

Create instead of living off the buying and selling of others.......
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I believe there is a high possibility this will happen, as foreign money may no longer find safe haven in the dollar at some point in the future due to our national dept. It is the only real savings this country has left as it far exceeds personal savings. Remember it's not your money yet, it is deferred future income.

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View PostI believe there is a high possibility this will happen, as foreign money may no longer find safe haven in the dollar at some point in the future due to our national dept. It is the only real savings this country has left as it far exceeds personal savings. Remember it's not your money yet, it is deferred future income.

 

bsflag.gif

 

It definitely IS my money and there's going to some real hell to pay if a bunch of socialists want to pretend otherwise.

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View PostI believe there is a high possibility this will happen, as foreign money may no longer find safe haven in the dollar at some point in the future due to our national dept. It is the only real savings this country has left as it far exceeds personal savings. Remember it's not your money yet, it is deferred future income.

 

 

Uhh, actually you are wrong. It is your money. It came directly out of your check. The only thing that is "deferred" is the tax payment.

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View Postbsflag.gif

 

It definitely IS my money and there's going to some real hell to pay if a bunch of socialists want to pretend otherwise.

 

I have been contributing to my sep plan for 13 years now and I am just as scared as you. What i'm trying to say is until you receive that money, pay the taxes on it, it is not your money and is vulnerable to the topic of this thread. I have been weighing the worth of continuing contributions as future taxation with carbon taxes and others may be every bit as high as what my rate is today. I would rather just save it instead of deferring it. wink.gif

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View PostDo you think the money you paid in to social security is your money. wink.gif

 

no.

 

they spent my money.

 

i'll never see it.

 

especially after obama gets done with his 4 years.

"Ok, Eddy you were right" - minivin5
"Oddly enough, Eddy is right fairly often"- TimS

"Eddy is correct" - TomT

"Say what you will about Eh-ddy but he actually does know a few things." - The Commish

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