The Department of Labor (DoL) pushed through a little-known rule in July. Millions of retirement investments could be affected. DoL expresses the view that “seldom” can Americans “prudently manage retirement benefits on their own” so they will do it.
The Department of Labor will manage private 401Ks starting in April of this year. The deadline for changes to your own 401K is January 13th.
The government has tried to steal our 401Ks for years and they updated a rule that is the camel’s nose under the tent. DoL can now make bad decisions for you. With a crisis in government pensions, these 401Ks will likely benefit government workers.
This Martin Armstrong statement is posted on the Ron Paul Forum:
As of 2017, what is yours, will begin the process to become theirs. The new ruling from the Department of Labor (DOL) affecting financial advice related to retirement plans is pretended to protect consumers against high fees which necessitates the government stepping in to monitor your 401K.
Next, no manager will be seen as competent and the Department of Justice will start to target small retirement managers to expose them for fraud that they can then turn into a justification for government to take over ALL 401ks.
This is how the whole thing will unfold all because the off-budget expenditure (Social Security & Medicare) are up 66% during the Obama Administration and go negative next year. One way to cope with all of this is to simple merge the failed government managed funds with the private funds.
Consequently, thousands of advisers around the nation are already scrambling to change their practices to fit the new regulations, which start to go into effect next January (with the balance in 2018). This coincides with the new international G20 regulation whereby all countries will start report on everyone sharing that info among themselves to hunt for taxes.
The Office of Management and Budget’s $17 Billion Dollar number for the 401K industry is too tempting for politicians to ignore when they are in desperate need of cash.
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The Importance of Prayer: How a Christian Gold Company Stands Out by Defending Americans’ Retirement
A Little Noticed Rule
On page 4 of the proposed regulation, DoL expresses the view that “seldom” can Americans “prudently manage retirement benefits on their own” and that they “generally cannot distinguish good investments from bad.”
The Competitive Enterprise Institute calls it “Obamacare for Your IRA.” It’s the same type of Ponzi scheme and hidden tax. You can read about at Fox Business.
Big government control of private savings and retirements is high on the socialist dream list.
The Obama government calls retirement savings a “human right”.
Americans Are Incapable of Saving for Retirement
Americans have more than $18 trillion in savings with 25% of it in IRA’s. It is a future source of revenue for the government if they can get their hands on it.
The EU has confiscated retirement and savings accounts to pay for their overspending and government savings accounts could one day become such a target.
An article on CBS News MoneyWatch in 2014 promoted the idea that people (Americans) are incapable of planning for retirement. They say that there has to be a new way of thinking about retirement. Rational Choice Theory will be replaced by government choice.
“Rational choice theory” is out, the article declared. “Rational choice” theory has been the economic model for retirement savings. It assumes people make decisions by putting together a list of options, choosing from them and doing so in one’s best interest. In addition, it assumes people have access to the information they need.
CBS News quotes Behavorial scientist, Richard Thaler of the University of Chicago, as having once said, “For many people, being asked to solve their own retirement savings problems is like being asked to build their own cars.”
We now know, moneywatch concludes, that most people aren’t “rational decision makers”.
The arrogance and condescension is astounding.
Government Came Up With a Guaranteed Retirement Account Scheme
To show you where the government would like to go with this, look at the GRA scheme.
In 2008, Obama first proposed a Guaranteed Retirement Account (GRA) for all, which would require businesses to offer automatic IRA’s. Included would be a mandate to invest 10% in U.S. Treasury bonds which is nothing if not another way of funding the profligate national government.
Obama’s fy2013 budget plan resuscitated the planned theft of savings with “Secure Choice” and “GRA’s” which would mandate 5% to 6% investment in government-controlled pension funds.
The scheme would go like this. Government bureaucrats would deposit $600 into your GRA and each worker would in turn deposit 5% of each paycheck into the account. In return, the government will magically guarantee a 3% tax-deferred return on these assets from who knows where because you know there will be no lockbox and they will spend the money just as they have with social security.
It would be forced savings.
In summation, Secure Choice Pension and Government Retirement Accounts (GRAs):
- Automatically take away 5% – 6% of your earnings and put it into a pooled GRA.
- Your tax refund checks will be automatically put into the pooled GRA – you won’t see a tax refund check again.
- Your unused vacation pay will convert to income and it will be put into the pooled GRA.
- The funds in your current retirement account will be converted to “longevity annuities,” which wouldn’t make payments until you’re very old.
- Once you die, your uncollected equity becomes the property of the government.
- The guaranteed 3% return won’t keep up with inflation.
Anyone refusing to cooperate would suffer additional penalties and taxes on any withdrawal of their savings from retirement funds. They would be mandated into investing a minimum amount in U.S. Treasury debt.
What Socialist Governments’ Wants
Finally, the government wants to eventually manage your savings without your having any say while you are saving and then confiscate it after you die. Under Obama’s plan, when a retiree dies, the government gets what is left over.
Taxing retirement is a way of pilfering your savings. It discourages saving.
President Barack Obama’s Fiscal Year 2013 budget plan estimated that retirement tax deductions taken by employers and individuals over the ensuing five years add up to $429 billion in “lost” tax revenue.
Government believes your savings is their lost revenue. If you take a legal tax deduction, the government believes they are being cheated out of revenue.
In fy2014, the plan was once again to bring us closer to de-privatizing IRA’s & 401K’s. Obama’s “Automatic IRA” will force employers with 10 employees or more, to “automatically” enroll their workers in the new Government run accounts. Obama’s Automatic IRA will be managed by the Social Security Administration(SSA).
In January of 2015, the Democrats pushed for automatic, government-controlled IRAs.
Illinois put The Illinois Secure Choice Savings Program (SCSP) into law on January 4, 2015, effective this month. Like MyRA, it is voluntary. It won’t remain that way and neither will MyRA. Currently, if employers in Illinois don’t make it available, they will face fines on each employee. It’s the camel’s nose under the tent.
Illinois is the first to pass such a law but others are now considering it because the leftists created a fake crisis that everyone has now bought into.
The original idea behind 401Ks and IRAs was to give citizens the incentive to save. Socialism’s idea is to use it for the common good of which they will be the guardians.
Anyone refusing to cooperate will suffer additional penalties and taxes on any withdrawal of their savings from retirement funds. They would be mandated into investing a minimum amount in U.S. Treasury debt.
Retirement Is a Human Right
Based on the idea of natural rights, government secures those rights to the individual by strictly negative intervention, making justice costless and easy of access; and beyond that it does not go. The State, on the other hand, both in its genesis and by its primary intention, is purely anti-social. It is not based on the idea of natural rights, but on the idea that the individual has no rights except those that the State may provisionally grant him. It has always made justice costly and difficult of access, and has invariably held itself above justice and common morality whenever it could advantage itself by so doing.
–Albert J. Nock
Socialists want governments to provide human rights and they try to convince people they can provide them.
They call retirement savings a human right. It’s a redistribution scheme.
Redistributing wealth is the road to socialism and it’s not only the rich who will be affected. Eventually Big Government will redistribute your money, your savings, as well. This is how Greece got to where they are.
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