Anybody else listening to Limbaugh?
He’s on a roll about what the House is studying regarding our 401(k)s.
It’s still somewhat murky to me but I think I have the main gist.
1. Government buys everybody’s 401(k) from them for what it was
worth in August. Well, they don’t actually buy it for cash, they
give you credit for that value in the Social Security program.
2. Those who are retired will be allowed to withdraw 3% of the August, 2008 value per year plus $600.
3. Those who have yet to retire will own an “account” that will compound at 3% per year, plus $600.
What I can’t wrap my brain around, just yet, is what’s with the "Plus $600."
4. When Citizen dies his heirs do NOT inherit the account.
It will be like Social Security–redistributed to others to spread your
It's considered to be "revenue neutral" because what will happen is your 401(k) will be transferred to the government and all they have to do is create a book entry account for you.
Now, Limbaugh is making it clear that this is NOT part of what The Chosen has indicated is his plan. Instead it's a plan by Representative George Miller (D-CA) and other wild eyed liberals.
But in a Washington with Nancy Pelosi calling the shots in the House, Harry Reid calling them in the Senate and President Obama sitting there with a big schidt eating grin waiting to sign it into law......................
Like Babs says, it's not going to be a great place for capitalists.
I should have made it clearer.
The “hook” is to make Citizen whole back to August.
“All you have to do Citizen is give us what’s left and we’ll give you back what you had in August” plus guarantee you 3%.
No more market risk. Won’t that be nice?
But from what I understand, it wouldn’t be mandatory. The investor has the option. If this is the case, looking at the back end of the deal would probably show it would not be in the investor’s best interest.
[quote=snaggletooth]But from what I understand, it wouldn’t be
mandatory. The investor has the option. If this is the
case, looking at the back end of the deal would probably show it would
not be in the investor’s best interest.
In Argentina they just took the retirement plans. I thought I heard that that was what would happen here too--but to placate us they'll give us what our 401(k) was worth in August.
We are talking about Democrats--which is American for Socialist.
I suppose if it's voluntary the only folks who would accept it are the older citizens--those who can't see there being enough time for the plans to grow back to what they were.
But when dealing with government what is voluntary has a funny way of becoming mandatory--seat belts comes to mind.
I hear ya. Argentina isn’t a great example to follow though…they can’t be that stupid.I do echo what BondGuy says about some Dem's wanting to be re-elected. Democrats are people too...they aren't all socialists. Many constiuents would have a problem with this stuff. Yes, if it was voluntary, the older citizens might accept it. Actually, some of these socialist ideas would actually benefit the older citizens (health care/retirement plans). Unfortunately, it would harm the younger people, which are the ones voting for it.
[quote=Bubba Gump]Have they give any guidance as to how this would affect IRAs?[/quote]
I think it’s important to understand that this is simply something being talked about in The House.
It ain’t going nowhere unless there are fewer than 40 GOP Senators and the socialist from Illinois wins the Presidency.
It’s just a lesson on why it’s idiotic to vote for Democrats–which as I said is American for Socialists.
In this country it’s all about party politics so it is not possible to
be a capitalist type guy–say a financial advisor–and vote for
Democrats anywere on the ballot. If you live in Omaha and send a
Democrat to the House, you just voted for Nancy Pelosi.
I love it.The same government that can't balance a checkbook, drove Social Security into the ground, destroyed public education, and can't finish the never ending 12 yr construction job on the interstate by my house wants to takeover 401(k)s and my healthcare... I've said it once, I'll say it a thousand times.... God Bless America. -Underminded