Sticky Fingers Eye Your IRAs

April 14, 2013

Sticky Fingers Eye Your IRAs Nancy Thorner & Jane Keill

On Wednesday, April 10, and at long last, President Obama released his FY $3.77 trillion budget proposal for 2014 as he stood with acting Budget Director Jeffrey Zients in the Rose Garden. Both Democrats and Republicans were quick to criticize the details of Obama’s budget blueprint that was said to cut deficits by $1.8 trillion over the next decade.

One budget proposal given short-shift by the news media, but of great interest for those with retirement accounts, is how much money is needed to be able to retire comfortably? The Obama administration wants to answer that question for you.

Under current law, Americans who save money in tax-deferred retirement accounts are taxed on the money when they withdraw it.  An additional tax penalty is imposed if withdrawal is made before retirement age.

Obama’s plan would limit an individual’s total balance across tax-preferred accounts to an amount sufficient to finance an annuity of not more that $205,000 per year in retirement, or about $3 million in 2013.   According to President Obama, “That sum is all that is needed to fund reasonable levels of retirement saving.” 

So, Obama is now going to tell you how much you can have in your retirement accounts, how much you can save and live on, and what he’ll do with the rest of it (tax it, of course).  Might it be that Obama placed the proposal in his budget to test the winds?

First Obama decides you’re wealthy if you make $250,000 or more.  Now, he’s telling you how much you can have to live on in your retirement.  

But is Obama’s proposal of allowing you to save only $205,000 per year in retirement accounts the only one?

In the recent past Richard Cordray and Rev. Jesse Jackson, Sr.  have suggested other ideas for using your retirement saving.  They represent two greedy politicians, out of many, who are salivating at the possibility of grabbing the almost $20 trillion in American investment accounts, ‘taking’ your pension, IRAs, 401Ks and other savings accounts from different directions to use for other things.  Notable is that neither of these men were elected to their positions.

Here’s a brief synopsis of what Richard Cordray and Rev. Jesse Jackson had to say:

-Richard Cordray is the head of the CFPB (Consumer Financial Protection Bureau) which was created by the Dodd/Frank financial act.  He was appointed by Obama on a recess appointment which was declared illegal recently by the US Court of appeals because Congress was still in session.  Cordray is still in office, however, and on January 18, 2013, during an interview it was reported that,

“The CFPB is weighing whether it should take on a role in helping Americans manage the $19.4 trillion they have put into retirement savings, a move that would be the agency’s first foray into consumer investments.”

-Then, there are the suggestions by the Rev. Jesse Jackson, Sr. at the 16th annual Wall Street Project Economic Summit in NYC, also in January 2013.  The Summit was held as a project to focus on creating solutions for black financial advancement that can complement government intervention. Jackson discussed a proposal for increasing the availability of capital by using pension money to make loans in low-income communities’.   In other words, let’s use the pension money from private savings accounts to help the black community to grow and develop – in conjunction with the Federal government, of course.

So, now, the government wants to get involved in ‘helping’ you manage your money because obviously they can do a better job of it than you can.  And, it will be only their first foray into this field – another method of gaining control over your assets and giving the government more money to redistribute and spend.  And, in their own words, more is yet to come.

Not new to Europe, over the past few years, articles have appeared in the Christian Science Monitor(1/2/11) and the Investors’ Business Daily, along with other radio show discussions, about the people of countries like Bulgaria, Ireland, Poland, Hungary, France, Argentina, etc. having their private pensions taken over in order to bail out the debts of their respective governments.  

Many of these pensions are similar to our social security plan, or in some cases, promised stipends if regular ‘government’ savings accounts are set up by the citizens of the country.  Governments are ‘confiscating’ billions of dollars/euros in order to pay the bills for their socialized benefits: health care, schooling, housing and jobs.  Some of these are union accounts, but they appear to be private unions, not governmental unions.  You can imagine what would happen if they tried to lift the government union pensions!

Now Democrats and the Obama administration have gone from just thinking about it, to talking about it, and having no doubt used Europe as their guide, liked what they saw and envision the same for this nation.  Having put this country into trillions of dollars of debt, Democrats are desperate to find money anywhere, not only to pay the bills, but to continue spending.  They won’t be able to resist the lure of trillions of dollars of private savings just sitting out there being used by private citizens. 

They’ll want to ‘redistribute’ those funds to all those who ‘need’ it and never worked for it – because it’s fair, don’t you see?  And, don’t think the Republicans won’t fall prey to the same lure.  We’re out of money.  Somebody has to find it somewhere, and this would be easy pickings.  Just nationalize everyone’s account and give you a receipt for what they take with a promise to pay it back – with interest.  Right?

After the ‘Cyprus Confiscation’, it didn’t take long for the President and fellow Democrats to reach with their sticky fingers for your private savings accounts. They are desperate for money, they can’t stop spending and they won’t admit they’ve run our economy into the basement.

Do you think it can’t happen?  Do you think it can’t pass Congress?  Think again.  After all, more money is demanded to run an ever larger and bloated government and a natural form of income is too good to resist.   All in all, it’s obvious the government is squirming to find a way to get our money!

You need to be on the phone to your congressional representatives, telling them in no uncertain terms to keep their sticky fingers off your money, before they try to do it!

 Sunday, April 14, 2013 at 09:07 AM | Permalink

First published at Illinois Review.


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