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Sunday, October 17, 2010

Say Goodbye to your 401(k)

I recently came across articles that bring back the idea of government seizure of your 401(k). Can this be true? What is the government to do with its multiple trillion debt? Would the trillions sitting in these retirement funds be a boon for the government? What a juicy target!

Obama and his advisers see this as a great way to control the American people. If your 401(k) is combined with Social Security, you lose the option to take loans against your account or to make hardship withdrawals. Instead of taking your retirement dollars anytime after 59 1/2, the government can make you wait until 62, 67, 70 or even later if retirement age would be to increased. What if the retirement age would be increased to 80? In the meantime, the dollars can be used to reduce the national debt.

We have none of the details, however, one can suspect that they would not be as favorable as current retirement plans as I am sure the government would make it harder for you to get your money. Can we see the government making it harder or voiding what were "the rules of the road" where it comes to retirement? Of course, they will.

When the government took over GM, not only did they fire the CEO, Rick Wagner, they also cancelled bankruptcy laws that had been in place for years. They gave preference to the labor unions over preferred creditors which normally would have had a lower priority in proceedings. So to change (violate, void, cancel--would be good alternative words) any law is nothing to this Administration.

So prepare for this action to take place in the lame duck session which follows the election. This can be one of those actions that the "losers" of the election will take. Why should they not take this action? Their retirement is set and after all it was the American people who "f-d" them so this would be a good way to get back at them!!

I await your comments------