Archive for the ‘401K’ Category

YOUR 401K – where it may well be headed

October 28, 2008

If you have a 401K you are not going to like this one.

As with most everything about Obama, this tidbit made a tiny corner of the news – a passing comment that caught my eye. 

Obama and the Democrats want to seize control of your 401K – take your money and issue you bonds at a value equal to pre-market explosion (August).  You would be required to pay 5% of your paycheck into your bond fund.  And the government has use of your money to do with as they choose. 

When you retire (the age for retirement will be extended) you will be given a single check for the amount you had, plus THREE % interest compounded annually, plus the 5% you were required to put into the bond fund.

ZIP – that’s it folks.  That is your retirement.  No more investing, no more employer matching funds.  You get bonds, and with a good deal of luck, they may be able to pay on them years hence.  Or not.

And of course, if you have money in the market and determine that you should sell, because of market activities, or you need some money in your retirement – you will be HIT and HIT HARD with capital gains taxes in the neighborhood of 37% !

Now, does this not sound like you can’t win – no matter what you do, no matter how hard you work and save?  It sure does ot me.  And it sure as hell sounds like Marxism too.