Postscript: $6 Trillion 401K Grab

Thu, Sep 16, 2010 - 5:38am
postscript 401k

In my last piece “The $6 Trillion 401K Grab” I neglected to highlight an important point from that fine Carolina Journal Online article: “Analysts point to another disturbing part of the plan. With a GRA, workers could bequeath only half of their account balances to their heirs, unlike full balances from existing 401(k) and IRA accounts.”

I love my country, but I have no intent of willing it my kids future.

After reviewing my notes from 2 years ago I decided to read most of the 779 “Requests for Information Comments”. I’m amazed. On the wars, the bailouts and health care I’ve read constituent numbers against :for.

100:1

300:1

600:1

Big numbers. Disturbing to think Congress would vote for issues with so much constituent dissent. And I’m writing more about that in Part II of my “Mutant Rat Epidemic Spreading Economic Black Plague” series. But I would like to invite you to look at the comments on the Department of Labor’s website. 600 against to 1 for is one thing, but when I read HOW passionately against this they are it blew away the numbers.

Reminded me of this old quote: “Statistics are like a bikini. What they reveal is suggestive, but what they conceal is vital.”~Aaron Levenstein

Here are a few:

“Coming from a host of ridiculous decisions from an administration and Fed set on "trying ideas", this is a recipe for civil unrest. If I wanted socialism I'd move to Cuba, thank you very much. If my elected government aims to control my money I will completely remove any and all investments from the market and transfer my wealth to gold. Tom”
“How about keep your thieving mitts off? D.”
“Please stay the heck away from my 401k. You clowns have jacked with enough stuff, you've earned the break and, frankly, the rest of us deserve you taking a break. The longer the better. Kindest Regards, David”
“Any attempt by the Fed government to impose or even start on the process of imposing any type of nationalization of my 401K plan will result in my immediate termination and withdrawal of the funds from the account. My personal investment accounts are exactly that – MINE. I demand the continued right to control the direction of these investments. The concept of forcing via regulation my participation in anything other than what I originally intended when opening the account is an unconstitutional attack on my personal liberties. Fund your massive deficits through some other ruse and keep your hands off my 401k.
Michael”
“Are you crazy???? Why would I want the US government anywhere near my 401K of which I contributed the maximum amount? The government has failed in every business in which it has stuck it's head: Social Security, Medicare, Head Start, and now the unwanted Health Care.
“I respectfully submit a "NO vote" for myself and my wife for this patently unconstitutional theft of the trillions of dollars that are held by hard-working Americans in order to prop up the debacle of Wall Street bailouts, Federal profligacy and patent illegality, no matter how it is presented.
This potential legislation is nothing but government sanctioned robbery."13. Should some form of lifetime income distribution option be required for defined contribution plans (in addition to money purchase pension plans)? If so, should that option be the default distribution option, and should it apply to the entire account balance? To what extent would such a requirement encourage or discourage plan sponsorship?" Gerald”
"This is my money to do as I please and not the government's. I will take it out and put it in my mattress before I will let the government have it. This is the most socialistic, idiotic idea I have heard of. Why don't you try fixing things before breaking others? The congress and senate do not have any investment in fixing social security or medicare because they are not using it. Their pensions should be done away with. No one else gets pensions of the same salary you have for life. Their insurance should be the same as anyone else. What makes them better than us? We'rethe ones paying the salaries and yet they live better than we do. Why should the vote themselvesraises? The last I knew it was my employer that decided my raise. We are the employers and weshould have a say. We're not getting 3% raises. My husband will be lucky to get 1% this year. I'm still unemployed after 8 months and after 17 years of employment. S tart running the government as a business instead of just putting a inadequate band-aid on everything.Debbie”
“I have a broken system that needs more fixing, Social Security. Get to work replacing the borrowed funds there, and stay away from 401k's. Why on earth would anyone trust you with their 401k's considering the mismanagement of other "social" programs? -- Joseph”
“Keep your hands off of my money! I am perfectly capable of making my own investment choices. Why would I trust the government to handle my retirement money when they can't even handle the plan they have set up now, i.e. Social Security?? I have investments precisely because I don't expect Social Security to be around when I retire! Jennifer”
“Why would i want a government that has an abysmal record of fiscal management ANYWHERE aroundmy money?Please save me from the testimony of someone bilked out of their savings. The person will still bescammed after the government hands out the money”~William
“The US government in general, and the Dept of Labor specifically, is not better informed than me on how I should manage my financial assets, either in acquisition or disposition.The failure of the government to balance Medicare and Social Security expenditures against revenues is not a record that inspires my trust that you can do better than I.”~Harry
“No, the US Government should not, in any way shape or from, attempt to manage, take over or require; personal or corporate retirement accounts, retirement plans, 401K’s or IRAs to be managed by the Federal Government. In the 234 year history of the Federal Government, the government has exhibited, without question, the inability to manage money. The USPS, AMTRAK, the Federal Budget, etc is only a few examples of fiscal mismanagement. The American citizen’s retirement accounts are exactly what it implies: Personal retirement accounts, not Government slush funds. Irvin”
“NO NEVER NO NO NO NO NO. Keep your hands off my money. The government has proven it will spend all it can - not just all it has. It is presently waiting to inflate away it's past debts - and I will suffer from it. I don't need your help, taking my investments and returning me worthless Treasuries. Go get your (oops, I mean MY) money from the Social Security lockbox. Oh, It's empty? Just like government promises, or my retirement savings after you get your slimy hands on it. In fact, SS is a classic example of that (take my money now, give me worthless promises). I don't need more of that. NO corporation in the US would be allowed to exist if it ran it's books like the US Government. That's pretty much all I need to surmise that the USG is full of charlatans. And any Bernie Maddoff selling a scheme like SS would be in jail (oh, yeah - he is). So keep your immoral, greedy, grasping hands off what's mine. Stay out of pensions, retirement funds. Don't renege on Roth and 401K. Brian”
“I have a small business with a 401k plan, and we each have IRA accounts. We have been adding our hard earned money to these plans since 1981. I want to retain the ability to direct my retirement plans the way I see fit and want to tell you in no uncertain terms to keep your mitts off my retirement money. The admin that grabs the retirement accounts of Americans will be thrown out of office faster than they can say Communist paradise.
One last word: f'getaboutit.
Sincerely,
Cathy”
“LEAVE MY PRIVATE RETIREMENT ALONE! I WORKED FOR IT, I SAVED I. IT IS MINE!! I AM WILLING TO GO TO WAR OVER THIS!!!!!!!” ~Hunter
“However, it is nothing more than an attempt by the government to take more money from those of us who have been smart enough to save for our own personal retirements. If we are interested in buying US Treasuries, we can do so right now. I am smart enough to see that you want to use my savings to prop up government spending. I want you, the federal government and all its agencies, to keep away from my retirement savings. You have squandered the money you took from me to fund Social Security. Instead of keeping it in trust, you have spent it.
I have no doubt that you would do the same with my retirement savings. Any attempt to take control of any portion of Americans' retirement savings will be met with the strongest possible resistance by all of us who have been responsible enough to save for our futures. We are smarter than you think.G.”
“This is not a socialist country, no matter how much this crooked administration wants to try to push it into one. The Treasury cannot sell all the debt it wants to sell right? And the FED just can't keep up with buying it all right? So now, you want to rape and pillage personal 401k and IRA accounts right? Social Security was ran into the DEEP RED from mismanagement, yet you want people to buy Treasuries from a government that is involved in fraud, lies, cover-ups, and who knows what else? I will never buy a Treasury note as long as Tim Geithner is in office, or Bernanke in the FED office. These two have ruined this country for our children and their children with their loose policies. We cannot even get a truthful simple GDP report or jobs report without massive downward revisions every month, and you expect people to trust this government?
This annuitization talk needs to be shut down NOW !!!!!!!! If the government wants to do something right for the people, then stop giving banks free money and have them charging consumers 30% interest on it. Tell the FED to stop printing money and purposely devaluing the dollar and stop pumping stock market futures with money they print creating false bubbles. Raise interest rates where buying a Treasury note might be worth the investment. Let these too big to fail banks fail, and we can begin to recover, instead of propping them up so their execs can get fat huge bonuses while millions are out of work. This idea is ridiculous and has no place in our system. Do not let this happen. The timing of this idea is not coincidence either, and I wonder what crooked plans are being developed right now behind closed doors?? Where is the "transparency" the people were promised by Obama? In closing, you cannot force people to put money where they don't want to put it. Certainly not in treasuries paying negative yields just so you can finance your spending at will campaigns. What kind of ponzi scheme are you trying to create now? Haven't we had enough ponzi schemes recently, most recently the unprecedented S&P futures and DJIA runs with economic conditions grossly getting worse and worse.
Jerome”

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