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There are billions of dollars in the many different NYC pension funds. The City thought it would be really nice if the pensions got involved in investing in Super Storm Sandy rebuilding. So now the City has $500 billion of current employees and retirees pension contributions to invest in housing and commercial space in NYC. I'm sure there will not be any waste, fraud and abuse when bureaucrats and developers and their friends get their hands on $500 billion.
Years ago the 401K was promoted as a better replacement to the defined benefit pensions because people could invest and earn as much as they wanted in the 401K and have a better retirement with alot more money.
Well we all know how that turned out. Average balance is about $47K which is squat compared to a guaranteed defined pension.
So here's the government to the rescue. They will convert your 401K/IRA to an annuity with guaranteed income. Of course the insurance companies will get a great benefit from having your money now. Top of the list is everyone's darlling..AIG. So, wanna hand over your precious 401K/IRA money to AIG to hold and send you monthly checks for the rest of your life ?
A year or two ago someone spoke to Congress about government managed 401K's because "the people want that". Just google "Teresa Ghilarducci".
Here's a link about her presentation to Congress. Her goal is that "everyone" should be covered with a government sponsored, mandatory enrollment in a replacement of the 401K. House Democrats Contemplate Abolishing 401(k) Tax Breaks | workforce.com
snippet:
"The U.S. Treasury and Labor Departments will ask for public comment as soon as next week on ways to promote the conversion of 401(k) savings and Individual Retirement Accounts into annuities or other steady payment streams...
..
There is “a tremendous amount of interest in the White House” in retirement-security initiatives, Borzi, who heads the Labor Department’s Employee Benefits Security Administration (http://www.dol.gov/ebsa/ - broken link), said in an interview. "
Reading your title, it sounds like they were going to confiscate the 401K, but the article does not say that. It talks about replacing the 401K system with something else, but obviously people would get to keep their 401K balance. If everyone paid 5% of their income into a retirement account, it would take the tax-payer off the hook when these people actually retire, because their retirement would be funded by the funds, as opposed to the government. Conservatives have suggested similar measures in the past, but I don't think this one will fly.
Reading your title, it sounds like they were going to confiscate the 401K, but the article does not say that. It talks about replacing the 401K system with something else, but obviously people would get to keep their 401K balance. If everyone paid 5% of their income into a retirement account, it would take the tax-payer off the hook when these people actually retire, because their retirement would be funded by the funds, as opposed to the government. Conservatives have suggested similar measures in the past, but I don't think this one will fly.
With government taking upwards to 60% of a persons earnings, putting away even another 5% makes it hard to live for some. Expecting one to retire on a mere 5% savings over their time working is ludicrous. If income taxes were lower for workers or if SS were treated as an elective investment, people could or should save more towards retirement.
As for me, I don't look to government to fund my retirement. Anyone that does is on a fools errand.
Reading your title, it sounds like they were going to confiscate the 401K, but the article does not say that. It talks about replacing the 401K system with something else, but obviously people would get to keep their 401K balance. If everyone paid 5% of their income into a retirement account, it would take the tax-payer off the hook when these people actually retire, because their retirement would be funded by the funds, as opposed to the government. Conservatives have suggested similar measures in the past, but I don't think this one will fly.
This thread is 3 years old.
Wasn't FICA supposed to do the same ?
The latest talk (Jan 2013) is of the Consumer Protection Bureau wanting to manage retirement accounts.
Have to keep up with which government agency thinks they can do better.
Retirement Savings Accounts Draw U.S. Consumer Bureau Attention - Bloomberg
The U.S. Consumer Financial Protection Bureau 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.
“That’s one of the things we’ve been exploring and are interested in in terms of whether and what authority we have,” bureau director Richard Cordray said in an interview.
With government taking upwards to 60% of a persons earnings, putting away even another 5% makes it hard to live for some. Expecting one to retire on a mere 5% savings over their time working is ludicrous. If income taxes were lower for workers or if SS were treated as an elective investment, people could or should save more towards retirement.
As for me, I don't look to government to fund my retirement. Anyone that does is on a fools errand.
I am not saying I support the proposal, but currently we pay what we do in taxes because we have put the taxpayer on hook to finance the retirements of the elderly. Even those 'socialist' Scandinavians don't do that. They require everyone finance their own retirement, and they do it by mandating a deduction from each pay check. I prefer people finance their own retirement. Anyone, I said it won't fly, and given the fact that the thread is from 2008, I guess I was right. It didn't fly.
I am not saying I support the proposal, but currently we pay what we do in taxes because we have put the taxpayer on hook to finance the retirements of the elderly. Even those 'socialist' Scandinavians don't do that. They require everyone finance their own retirement, and they do it by mandating a deduction from each pay check. I prefer people finance their own retirement. Anyone, I said it won't fly, and given the fact that the thread is from 2008, I guess I was right. It didn't fly.
The thread is from 2010.
It's been discussed in Congress.
Then it was discussed with the DOL who had a 3 day hearing on it.
Now it's being discussed with the Consumer Protection Bureau.
It's talk so far with nothing more coming out of it.
But sooner or later they will have to do something.
Younger workers have no pension, SS is in the crapper and Americans are not savers.
Reading your title, it sounds like they were going to confiscate the 401K, but the article does not say that. It talks about replacing the 401K system with something else, but obviously people would get to keep their 401K balance. If everyone paid 5% of their income into a retirement account, it would take the tax-payer off the hook when these people actually retire, because their retirement would be funded by the funds, as opposed to the government. Conservatives have suggested similar measures in the past, but I don't think this one will fly.
Everyone already pays 15.6% of their income to a "government guaranteed retirement account". Why would be be able to trust the government any more to manage another 5% and not steal it?
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