Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I think I'll stick with my own plan ty, I have absolutely no confidence in government, banks or other so I'll stick to keeping it in a sock under my mattress.
Very bad investment for young people.
The government takes your money and locks it up in Treasuries for 30+ years and promises you retirement money later in life. I was reading that they might create a new special Treasury bond just for that program.
Current 30 year Treasuries are 3.80%. You want to lock up your money for 30 years at that rate ?
Isn't that Social Security ?
I'm telling my son to stay away from that if he gets offered something like that on his job.
Fidelity IRA has no min and a host of investment vehicles to choose from.
I've been around, up and down long enough to know that this is not such a bad deal. A guaranteed 4% return, compounded year on year is not such a bad deal. I've jumped at 6% such deals already, without Gov't guarantees. And I am doing better at 12-20% with a proprietary investment. But by diversifying with a guarantee at 4% it is not such a bad long term deal. Sign me up.
quote:
Inflation will be the preferred option - in spite of the potential for social unrest and the difficult consequences for middle-class savers should it really take hold. However, boosting inflation has not worked so far because of the pressure to deleverage and because of the low demand for new credit.
.....
There is one thing we would like to bring to our readers' attention because we are confident, that one way or another, sooner or later, it will be implemented. Namely a one-time wealth tax: in other words, instead of stealth inflation, the government will be forced to proceed with over transfer of wealth. According to BCG, the amount of developed world debt between household, corporate and government that needs to be eliminated is just over $21 trillion. Which unfortunately means that there is an equity shortfall that will have to be funded with incremental cash which will have to come from somewhere. That somewhere is tax of the middle and upper classes, which are in possession of $74 trillion in financial assets, which in turn will have to be taxed at a blended rate of 28.7%.
buy in at a 4% treasury - rates go up - value of treasury goes down - you still get the 4% return but what backs your investment decreases in value. this is desperation on the govt's part because no one wants our worthless paper. next they will tell us that they have to raise taxes on everyone else to pay this out. endless cycle until people stand up and say enough is enough.
quote:
Inflation will be the preferred option - in spite of the potential for social unrest and the difficult consequences for middle-class savers should it really take hold. However, boosting inflation has not worked so far because of the pressure to deleverage and because of the low demand for new credit.
.....
There is one thing we would like to bring to our readers' attention because we are confident, that one way or another, sooner or later, it will be implemented. Namely a one-time wealth tax: in other words, instead of stealth inflation, the government will be forced to proceed with over transfer of wealth. According to BCG, the amount of developed world debt between household, corporate and government that needs to be eliminated is just over $21 trillion. Which unfortunately means that there is an equity shortfall that will have to be funded with incremental cash which will have to come from somewhere. That somewhere is tax of the middle and upper classes, which are in possession of $74 trillion in financial assets, which in turn will have to be taxed at a blended rate of 28.7%.
Any monetarily sovereign nation can create the money needed, and not necessarily take it from its people. So in those nations there are always 2 'somewhere's'.
Any monetarily sovereign nation can create the money needed, and not necessarily take it from its people. So in those nations there are always 2 'somewhere's'.
That just gives some more options, than some others have. However, our financial systems are global. Governments and banks don't arbitrarily make plans either.
Don't forget all money originates with the people. The term creation or taking aside.
That just gives some more options, than some others have. However, our financial systems are global. Governments and banks don't arbitrarily make plans either.
Don't forget all money originates with the people. Creation or taking aside.
Tell that to the NSA.
Remember that the Fed can raise or lower a banks account via computer keystrokes...
quote: As can be clearly seen via the document below, the retired former employee of the Social Security Administration has received official notice thatall future 401k contributions have been moved from his prior allocation into 100% US treasury bonds! ....
(alleged photocopy of statement is attached.)
Hey Doc, I just heard from a friend of mine that who worked for the Social Security Administration for a few years that his entire 401k has been moved from where he allocated it into US treasury bonds.
He just received his annual statement that shows all of his funds have been moved, without his permission or even notice!
Not true. They cannot touch your 401K without your permission.
There has been 3 separate occasions though that Congress, DOL and the Consumer Protection Bureau have discussed "managing" people's retirement accounts (401K/IRA/Roth) for them but they would have to sign it over. It's never gone past discussions.
I follow this closely, very closely.
Our 401K/IRA/Roth's are still ours.
I've been around, up and down long enough to know that this is not such a bad deal. A guaranteed 4% return, compounded year on year is not such a bad deal. I've jumped at 6% such deals already, without Gov't guarantees. And I am doing better at 12-20% with a proprietary investment. But by diversifying with a guarantee at 4% it is not such a bad long term deal. Sign me up.
You are not guaranteed 4% return. You are just guaranteed "income".
What if rates go down next year and your next year's contribution locks you in at 1%.
Then 10 years down the road rates shoot up to over 10%.
No, very bad investment to lock yourself into bonds today at pitiful rates.
Better off opening an IRA with Fidelity and put your money into a mutual fund if you have no financial savvy.
Pick one of those tiered "I'm gonna retire in 30 year" packages.
You can buy/sell to take advantage of ups and downs.
Can't do that when you are locked into Treasuries that might be non-negotiable as I've read they might create a new type of Treasury for that scheme.
There is no "diversity" when all your money is put into Treasury bonds.
Not true. They cannot touch your 401K without your permission.
There has been 3 separate occasions though that Congress, DOL and the Consumer Protection Bureau have discussed "managing" people's retirement accounts (401K/IRA/Roth) for them but they would have to sign it over. It's never gone past discussions.
I follow this closely, very closely.
Our 401K/IRA/Roth's are still ours.
Yes I was aware of this.
Well understand that if this had occurred, the description supposedly was relayed by a second party and may not be accurate. So I wouldn't take it literally if such a change had occurred to an individual.
I just thought it was interesting having come out when it did.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
