Question on IRA'S with regard to the FEDS.... (purchase, money, financial)

[taurus430]

I read a post on here something about the Government nationalizing IRA'S in time. Any info on this and if so does this mean 401k's(IRA) that are in trouble or all IRA'S (held at banks also)???

[chet everett]

Lot of bad rumors floating around about that. Stems from testimony that a semi-whack-job type offered in a Congressional hearing a few weeks ago: http://www.house.gov/ed_workforce/testimony/2008-10-07-TeresaGhilarducci.pdf (broken link)

There is just about NO WAY this will happen -- first the Congress would have to endure massive lobbying on the parts of ENTIRE FINANCIAL FIRMS THAT WOULD BE WIPED OUT, the wrath of voters, who, despite having a lot of fear & doubt about their investments, have even MORE hatred of the Congress critters, and most sane economists realize there is just too much BAD about trying to redeem/cash out massive numbers of personal investments...

[Nor'Eastah]

And then it helps to remember that Congress-persons and their families, friends, and neighbors have IRA's also.

While the elected 'officials' don't give a damn what we think, they do pause when considering what their families, friends, and neighbors will think!

[Exrvi]

Based on what I've read, this is basically aimed at 401(K)s for those people still working and saving. I don't think there was any implication they would go after people who have self directed IRAs, particularly those who are already retired.

I also agree with the other posters who point out that the likelihood of this happening is close to 0. It was just one of many ideas put forth to the committee. The financial dislocation of "de-leveraging" 401(K)s and IRAs would be enormous.

Jeff

[taurus430]

Thanks for your feedback, clears that up. I personally think retirement savings should be in a safe place other than the market if eventually this is to replace SS.

I am close to retirement but in good shape as I am very conservative but being almost there, I feel for others who lost so much.

[Humanoid]

Originally Posted by taurus430

I am close to retirement but in good shape as I am very conservative but being almost there, I feel for others who lost so much.

Do you also feel for the people that go to Vegas and lose money?

[Lizzievv7272]

Don't think this idea isn't still being thrown about -- The Dept. of Labor under their Erisa Dept. just finished a several months-long comment period about this very subject. An Administration appointee proposed this with the encouragement of Congressmen Jim McDermitt and George Miller to actually either nationalize IRA's and 401(k's) and give those owners a little better Social Security payment or require that you purchase a special 1% guaranteed Treasury bond. They seem to need the $$$$$, so don't think it's over!

[hilgi]

401(k)s Under Attack! | Business & Markets | Minyanville.com

[Jaggy001]

Originally Posted by hilgi

401(k)s Under Attack! | Business & Markets | Minyanville.com

Good link. Thanks for posting.