LAST UPDATE: 01/05/2012 11:39:51 AM There is hell to pay if this happens... |
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You may only have one defense. Stop it before it happens! Delaying any action may freeze your options very soon! The time to object ended on May 3rd, 2010. The United States Department of Labor feels you are not able to manage your own pension money both at work or in your own personal and private IRA accounts. So, they have written a proposal last February to help you out. Or more like, to help the money out of your pocket and into their hands! If this moves forward and is put into effect, the only defense you may have is to call or write your congressman and legislators to show your disapproval. Then flood the White House with faxes, calls or letters as well to let the administration know -- you are doing just fine without their intervention. Specifically, you can read the proposed rules by CLICKING HERE or just download the PDF file if you want to print and read them. But the proposal doesn't contain "all" of the plans they have for your pension money. The United States government now feels you must be "controlled" in how you take out withdrawals from your retirement type funds -- so you don't take too much out! So, they have a deal for you. They take over (more like steal) your funds from you, then issue an annuity for your retirement income that has lifetime payments. While the media concentrated on national health care, the recent oil spill and our little controversy here in Arizona over immigration, this situation has come to a head largely with the public not knowing about it. Am I the first to see what is really going on here? Have you ever bought a lottery ticket? The government, who does such a fine job turning a profit in everything they touch, wants you to forget about taking any more lump sum distributions from your plan. In lieu of having this current FREEDOM, they feel a guaranteed monthly income instead is better for you. There goes the plan to buy a home for cash in Arizona! BIG BROTHER SAYS monthly income until the day you die IS BEST FOR YOU! On the surface, it may seem like a worthy plan for some. But, under the surface, here is what will really happen. They will confiscate up to 100% of the actual dollars in 401(k) plans you now have at work. Then, they will either set up their own insurance department to issue annuities, or favor one of the companies who contributed the most to the Obama election to administer the plans. If the government does this themselves, they will have up to 100% of your present 401(k) money potentially if they decide to take the full 100% now in private trustee accounts. If they also decide to also take your private IRA funds, they could (both are in the proposal as a suggestion) also grab your private non IRA annuities as well! All this so they can stop you from drawing out too much retirement income all at once. Don't believe that! The truth is obvious to a long term insurance broker and financial advisor such as me. THE TRUTH The truth may not set your money free in this case, but at least you will know just how greasy and sleazy this proposal is. (And, if they can take your retirement funds, what will stop them from taking your CD's and other investments you now have?) The truth is that when you buy a lottery ticket you are asked if you want "cash" or "annuity". Because if you win a million dollar lottery, you are going to walk away with about 1/2 of the money before taxes if you choose the "cash" option. You see, it takes about $500,000 to buy the annuity that will pay you a million dollars over a 20 year period. It is called "time value of money" and money due in the future is discounted with a reasonable expected rate of return since it is not needed right away to pay your monthly or annual annuity payments. The Labor department proposal doesn't mention it, but others have. The truth is that labor unions can no longer sustain the big pension payments due their retirees because they already raided the funds or got hit with the same market loss's you did, or a combination of both. Add in mismanagement, potential skimming, and other things that can make money disappear when the person it is due to, is not in control of it. And then you can maybe see the link between this administration and how they came into power and how this sleazy plan may just be a way to get money to these unions so they can pay back money that has disappeared and is now needed to pay retirees and keep them quiet. (Watching the Greece "ugliness" in the streets on television might have pushed the administration into making sure this proposal eventually becomes law!) They will simply TAKE IT FROM YOU and give it to the labor unions! It happened with the Chrysler settlement. Who do you think got Obama elected? HOW DOES THIS DIRECTLY AFFECT ME?
Recent Republican Response READ IT SO YOU FULLY UNDERSTAND THE GRAVITY AND RISK YOU FACE! (SENT 5/3/10)
The Honorable Hilda L. Solis
The Honorable Timothy Geithner Dear Secretaries Solis and Geithner: As members of the Republican Savings Solutions Group, we write today to express our strong opposition to any proposal to eliminate or federalize private-sector defined contribution pension plans, such as 401(k)s, or impose burdensome new requirements upon the businesses, large and small, who choose to offer these plans to their employees. In the Annual Report of the White House Task Force on the Middle Class, Vice President Biden discussed at length the creation of so-called “Guaranteed Retirement Accounts, (GRAs)” which would provide for protection from “inflation and market risk” and potentially “guarantee a specified real return above the rate of inflation” -- presumably at taxpayer expense. In the Report, the Vice President recommended “further study of these issues.” The Vice President’s comments are troubling, insofar as they come on the heels of testimony before Congress from supporters of GRAs proposing to eliminate the favorable tax treatment currently afforded to 401(k) plans, and instead use those dollars to fund government-invested GRAs into which all employees would be required to contribute a portion of their salary -- again, with a government subsidy. These advocates would, essentially, dismantle the present private-sector 401(k) system, replacing it instead with a government-run investment plan, the size and scope of which remain to be seen. This despite data showing that 90 percent of households have a favorable opinion of the existing 401(k)/IRA system. In light of these facts, we write today to express our opposition in the strongest terms to any effort to “nationalize” the private 401(k) system, or any proposal that would dismantle or disfavor the private 401(k) system in favor of a government-run retirement security regime. Similarly, and more recently, the Departments of Labor and Treasury have jointly issued a “Request for Information” regarding the “annuitization” of 401(k) plans through “Lifetime Income Options.” While we appreciate the Departments’ seeking guidance and information from all parties and stakeholders in advance of regulatory activity, we strongly urge that the Departments not proceed with any regulation in this area before they have carefully and thoroughly considered all of the information received. More specifically, we urge that the Departments take no action to mandate that plan sponsors -- often, small businesses -- include a “lifetime income” or “annuitization” option if they choose to offer a 401(k) plan to their employees, or that beneficiaries take some or all of their retirement savings in such an option. Data shows that 70 percent of Americans oppose the concept of a mandated annuity or government payout of their 401(k) plan. On a more fundamental level, Congress should not be in the business of choosing “winners” and “losers” among retirement security stakeholders. Instead, we urge the Departments to make it easier for employers to include retirement income solutions in their savings plans and to help workers learn more about the value of their retirement savings as a source of retirement income. Finally, to the extent new mandates and bureaucratic red tape from Washington push small employers out of the business of offering these plans to their employees, we would submit such an effort weakens, rather than strengthens retirement security. We appreciate your consideration of our views in these important matters and stand ready to work with you and the Administration to promote secure and adequate retirement savings for all Americans. Sincerely,
House Republican Leader John Boehner (R-OH) Important Links On This Subject:
****** http://www.humanevents.com/article.php?id=36823 Is This A New Proposal? No. Since an absolute unknown to most Americans appeared on the campaign trail a few years back and became President, proposals existed back in 2008 first -- to take over 401(k) accounts. Especially right after the financial meltdown we all painfully endured just two years ago. Visit You Tube and review a few of these videos just to get better educated on this subject:
Updates 5/27/2011 A current proposal has been suggested known as "The Savings Enhancement by Alleviating Leakage in 401(k) Savings Act of 2011" . Yea, the name alone should give it away! Congress has gone nuts. You would think this was a bill to govern nursing homes...But, we are in a day and age of crazy stuff and this bill is positive proof that Uncle Sam wants his hand firmly on your wallet and especially, he wants to get closer between you and your 401(k) plan held by a professional Trustee. READ MORE ABOUT IT: http://www.govtrack.us/congress/bill.xpd?bill=s112-1020 01/05/2012 A rougue climate exists even more as we roll into a new year here. Unconstitutional appointments bypassing Congress are very positive proof that this proposal could be activated at any time and that a "Czar" would be appointed to carry it out. Be very careful in your 2012 planning to guard against any Inherited IRA or Traditional IRA proposal that ties your money up long term or restricts your ability to "cash in", convert, transfer or move the funds elsewhere quickly. M.D. Anderson, AZCLDP, Accountant I am available for consulting on this issue. My rate is $33.75 per 15 minute session (or portion thereof) and this includes our 10% internet billing discount. A credit card portal * is available for required pre-payments before your appointment begins. Phone appointments are now available (time zone adjustments are requested for Arizona or Pacific Mountain Time between 10 AM and 5 PM) * Cursor to bottom of page to purchase a session. 30 minutes is recommended at $67.50 Call us Toll Free To Lock in a Phone Appointment Time 1-800-782-2806
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That $200,000 401(k) you have could put $100k in the government hands
never to be seen again, the other $100k (less if you are still
young) in an insurance annuity that will promise to pay you lifetime
monthly income in the future. 
