An obscure SCOTUS ruling last week sets the stage for Obama to seize your 401(k)

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An obscure SCOTUS ruling last week sets the stage for Obama to seize your 401(k)

Tapping the estimated $19.4 trillion dollars in private pension plans is every progressive socialist’s wet dream. I warned you Obama had his eye on your 401(k), and now a little noticed Supreme Court ruling just gave him the green light to seize your money.

The US Supreme Court ruled last week in the unanimous, 8-page decision in Tibble v. Edison holding that employers have a duty to protect workers in their 401(k) plans from mutual funds that are too expensive or perform poorly. That is simply astonishing since there is no constitutional requirement for even government to provide social benefits.

Remember when the Constitution provided a limit to government power?

Yeah, me neither.

Now the Constitution says the government has to protect you from your own bad investment decisions. Er, SCOTUS says the government has to protect you from your own bad investment decisions. The Constitution is silent on the matter. But, emanations of penumbras, or some such rubbish dontcha know.

Monday’s unanimous ruling sends a warning to employers that they now must improve their plans and it is now an obligation to project employees. This comes just in time for then the next step is government to seize private funds and prosecute employers who choose badly a fund manager. This fits perfectly just in time for the Obama administration’s next assault as they prepare a landmark change of its own by issuing rules requiring that financial advisers put the interest of customers ahead of their own. This creates a very gray area wide enough to justify public seizure of pension funds under management.

Read that again, in case you didn’t catch the part where the government is going to decide if your 401(k) is “good enough.”

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Yet this decision is even deeper. It sets the stage to JUSTIFY government seizure of private pension funds to protect pensioners. When the economy turns down and things get messy, they are placing measures in place to eliminate money in and physical physical dimension, closing all tax loopholes, shutting down the world economy with FATCA, and preparing for the final straw of Economic Totalitarianism with the Supreme Court reversing its entire construction of the Constitution to impose a duty upon employers to ensure the 401K plans perform in a world where interest rates are going negative. You really cannot make up this level of insanity.

Oh, this level of insanity is just what a guy like Bernie Sanders ordered. It’s the nanny state, writ large.

Bureaucrats answerable to Sanders’ cohort Elizabeth Warren will now get to decide if your 401(k) plan cuts the mustard. They’ll arbitrarily set a cap on management fees, and punish any fund that exceeds their idea of a “reasonable” profit.

The punishment? Seizing the fund’s assets, and forcing your money into an investment in Treasury bonds.

Then you’re just another creditor to Obama, standing in line behind all the geezers on Social Security. Good luck getting paid, after all you’re also collecting Social Security, and sooner or later you’ve made enough money.

Between the court ruling and the Obama administration’s push for stronger fiduciary rules send a strong message that government can much easier seize the pension fund management industry of course to “protect the consumer.”

Who’s gonna protect us from the government?

You knuckleheads shoulda thought that through before you elected a committed Marxist to the presidency.

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Greatest Hits: They Said if I Voted for Romney, They’d Come After my 401(k), and They Were Right!

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They Said if I Voted for Romney, They’d Come After my 401(k), and They Were Right!:   Don’t be surprised when they come for your savings…

That’s right kids, they government is eyeing your 401(k), IRA, or 403(b) with great envy.  And, as for the title, since Stacey is talking blog shtick, I thought I’d borrow from his well, which is deep with all sorts of goodness.  

But, back to the seriousness.  There has been rumblings about the government taking over all private retirement accounts for some time.  Apparently, the democrats just can’t let a big pool of money sit there in private hands-it must be controlled, and redistributed, bythe kind hands of government.  Bob Belvedere at  TCOTS has more…

The Editors at Investor’s Business Daily published an excellent editorial yesterday [tip of the fedora to Memeorandum] on the coming attempt by the national government to seize control of retirement accounts, like the 401(k).

A highlight:

President Obama’s National Commission on Fiscal Responsibility and Reform, for instance, proposed lowering the cap on the amount workers could place in their 401(k)s without incurring taxes.

And nearly three years ago, Newt Gingrich and Peter Ferrara wrote on these pages about the Treasury and Labor departments “asking for public comment on ‘the conversion of 401(k) savings and Individual Retirement Accounts into annuities or other steady payment streams.’”

“In plain English,” said Gingrich and Ferrara, “the idea is for the government to take your retirement savings in return for a promise to pay you some monthly benefit in your retirement years.”

More than 60 million American workers have a 401(k) or similar — 403(b) or 457(b) — plan. But taxing these accounts or lowering the amount that can be contributed to them tax-free would do little to close the deficit and cut the debt.

Do take the time to click here and read it all [and weep].

Hmmm, let’s take a look at the following a bit more closely…

“the idea is for the government to take your retirement savings in return for a promise to pay you some monthly benefit in your retirement years.”

That sounds rather familiar, doesn’t it?  I mean, how does money get taken from me in exchange for payments when I’m retired?  Oh, that’s it, Social Security.  Well, I never expect to see a dime from that government ponzi scheme, which is why I have a 401(k).  However, if they government does to my 401(k) what they are doing to Social Security, should ever expect a single dime of that either?

I’m thinking retirement is going to be very cold and hungry.  Then again, IPAB would probably kill me off buy that time anyway.

Isn’t it great to live in the “fundamentally transformed USSA?”

We’ll be showing more and more posts about this today, as it is a current issue. 

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Boomer And Xers: Most Of You Missed The Boat. What The Hell Were You Thinking?

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peanut-butter-jpg

 

The Burning Platform is one of the more outstanding blogs on the internet, in my opinion. The latest post there has left me shaking my head in wonderment about the younger baby boomers  and the so-called generation X. It’s a long post, so I’ll try to give you the short version. The author came across some data that demonstrates clearly that a large percentage of those generations are utterly, totally unprepared for their quickly approaching retirement years. They have next to no savings and they have no one to blame but themselves.

The author starts with this quip:

I stumbled across two mind blowing charts yesterday that had me pondering how generations of Americans had frittered their lives away, spending money they didn’t have  on things they didn’t need, utilizing easy to acquire debt, and saving virtually nothing for their futures or a rainy day. We are a nation of Peter Pans who never grew up.

Before we get to what those “mind blowing” charts showed, let’s talk about why the author thinks we are a nation of “Peter Pans”. He spend a lot time and provides a lot of data to show that during the last 34 years, more or less the time frame in which these folks have been in the workforce, in spite of the booms and busts that took place, investments in the stock market have returned an average of 11% and lower risk investment have returned about 7% on average. the point being that had these folks saved even modest amounts from their monthly incomes, they would now have very tidy nest eggs to help them through their retirement years, which are just around the corner. Instead, he found that they lived the good life by buying their McMansions (many of which are under water) and maxing out their credit cards to buy all the latest goodies the Madison Avenue boys told them they couldn’t live without. Saving for the future or a rainy day apparently was not one of their priorities.

Now to the charts and commentary by The Burning Platform:

Over 15% of all people 60 and older and 23% of people 45 to 59 years old have NO retirement savings. None. Nada. Zilch. This means 25 million Boomers and Xers are stuck living off a Social Security pittance and choosing between keeping the heat on or eating a feast of Ramen noodles and Friskies. It seems they let 30 years get behind them. They missed the starting gun.

http://www.mybudget360.com/wp-content/uploads/2014/11/retirement-savings.png

I’m not shocked that over 50% of 18 to 29 year olds have no retirement savings. With the terrible job market, declining real wages, massive levels of student loan debt, two stock market crashes in the space of eight years, and 4% annual returns since 2000, young people today have neither the means nor trust in the system to save for retirement. Their elders had no such excuse. Just a minimal amount per paycheck saved over the last 30 years would have compounded to well over $100,000, even at modest salary levels. It is disgraceful that 25 million people over the age of 45 have saved nothing for their retirement. Far more disgraceful is the median household retirement balance of $3,000 for all working age households. There are 122 million households in this country and 61 million of them have $3,000 or less in retirement savings.

http://www.mybudget360.com/wp-content/uploads/2014/11/20130620__figure9.jpg

The far worse data points are the $12,000 median retirement balance of aged 55 to 64 households and the $10,100 median retirement balance of aged 45 to 54 households. These people are on the edge of retirement and have less than one year’s expenses saved. There is no legitimate excuse for this pitiful display of planning. These people had decades to save, strong financial market returns, and if they worked for a decent size organization – matching contributions to their retirement accounts. They didn’t need a huge salary. They didn’t need to save 20% of their salary. They didn’t have to be an investing genius. A savings allocation of just 3% to 5% would have grown into a decent sized nest egg after a few decades of compounding.

And

… We’ve had decades of faux prosperity aided and abetted by Wall Street shysters, corrupt politicians, mega-corporation mass merchandisers, and Madison Avenue maggots trained in the methods of Edward Bernays to convince willfully ignorant consumers to consume. And consume we did. Saving, not so much. You can blame the oligarchs, bankers, retailers, and politicians for the fact you didn’t save, but it rings hollow. No matter how much propaganda is spewed by the ruling class, we are still individuals with free will. The older generations had choices. Saving money requires only one thing – spending less than you make. Most Boomers and Xers chose to spend more than they made and financed the difference.

That brings us to the question in the title of today’s post: Boomers and Xers _ What the hell were you thinking?Did you buy into the lie that Big Government was going to take care of you? Big Government has already made trillions of dollars of entitlement promises it will not be able to keep. The same is true of the promises state and local governments made about their lucrative pension plans. You, because of the decisions you made, are going to be more than a burden on your children in your old age; you are going to be anchor around their necks while they struggle to make ends meet in an era much less rewarding than the one you took advantage of during your working years.

Don’t look to my generation for sympathy. That well has run dry!

Well, that’s what I’m thinking. What are your thoughts?

.

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Obama’s “myRA” will sieze your retirement accounts

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I hope folks remember Barack Obama’s State of the Union drivel this past January. Part of the lies and distortions spewed by the fraud-in-chief is his “myRA” plan. The one he touted to help people give up their retirement accounts to the government … er … save for retirement. When the government gets access to money, especially American taxpayer’s money, the need to spend that money is uncontrollable. There is somewhere around $19 TRILLION in private retirement account in America. Is there anyone, liberal or conservative who believes those in the government isn’t trying to think of ways to get at that money?

David Fischer at Western Journalism posted an interesting and startling piece today. Here are some excerpts …

“myRA”: An Official Step Toward Seizing Your Retirement Accounts

Obama, during his most recent State of the Union address, revealed a new plan  called “myRA”, which will be a government managed retirement plan. Obama signed  this program into effect one day after his announcement by his executive order.

Our country is heading at light speed toward a “Bail In”, a term that might  be new to many.  Shifting from domestic to global economic affairs,  consider how other countries have dealt with their debt burden via “Bail  Ins”:

  1. The National Pension Reserve Fund was brought into existence in Ireland in  2001. The purpose was to support the pensions of the Irish people. The citizens  of Ireland paid into their private pensions and, in 2009, their government  seized 4 billion Euros to rescue their banks. Then again, in November of 2010,  the remaining funds left over, which was 2.5 Billion Euros, was seized to  bailout the rest of the country.
  2. In 2010, the government of Hungary seized 14 Billion Euros in private  pensions to reduce the budget gap, while avoiding painful austerity  measures.
  3. In Bulgaria, their government confiscated 300 Million Euros of private  retirement savings to fund their state pension in December of 2010.
  4. The French Parliament, with an elaborate process to change pension laws,  decided to seize 33 Billion Euros from their citizens to support government  spending. This took place year before last and transpired in just a matter of a  couple of weeks.

A total of eight countries have raided retirement plans since 2008 to support  their government being upside down.  Is the United States going to be next  on this growing list?

READ THE ARTICLE HERE

I think maybe … well there might be a “minute” chance some liberals who have been defending the government take-over of the American health-care system, will realize team Obama is coming after their retirement accounts also. I’ve been telling folks all along that when America goes down, everyone, liberal and conservative goes with her. There are those who think it’s a wonderful thing to have the government control the health-care system in America. I wonder if they’ll think the same when the government takes control over their retirement funds, dictating just how much of your own money you’ll get … after they get finished with it?

HERE is more information.

Original Post: Cry and Howl

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ObamaCare Medical Devise Tax to Cost 33,000 Jobs?

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If the numbers hold true, ObamaCare has cost 33,000 jobs, just in the medical devise industry.  One “feature” of ObamaCare is a tax on medical devises, like pacemakers, and artificial joints.  Just like everything else in ObamaCare, it’s causing people to lose their jobs, or cause other jobs to be “aborted.”  Here is more…

This spinning of the loss of jobs due to Obamacare was described by Sebelius as not simply  ‘not true’, but as a myth. This, however, does not mesh with the reality that is happening around the country. Today, the New York Post reports on 33,000 jobs lost directly due to a result of Obamacare’s medical device tax mandate. 

The Advanced Medical Technology Association surveyed its members to determine the number of lost jobs since the 2.3 percent excise tax on medical devices took effect in January 2013, raising about $3.8 billion a year to help pay for ObamaCare.

The survey found that nearly a third of respondents had cut research and development because of the tax, and almost 10 percent had moved manufacturing abroad.

The job losses were put at about 14,000, with another 19,000 openings that were left unfilled.

“During a time when there is bipartisan support for growing high-technology manufacturing jobs, these results should serve as a wake-up call,” said Stephen J. Ubl, president of the Advanced Medical Technology Association. 

[Continue reading at the New York Post.]

Now, think about what this does.  It kills jobs in the medical devise industry.  As manufacturers stop research, stop manufacturing entirely, or move overseas, the devises needed to sustain the health of our aging population are going to be harder to obtain, and more expensive.  Just in time for the boomers to retire, the technology that many will need will be out of reach.

But at least Obama will allow them pain pills, for now…
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The Boomer Retirement Tsunami Will Be Devastating To Younger Americans

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Last week I wrote a post in which I offered my condolences to Americans under sixty years of age. I was referring to the mess my generation (The Elders) and the Baby Boomer generation (Soon To Be Elders) have left to the younger generations. Actually the cut off is closer to 53 than 60; but 60 was a nice round number. Now I have some more detailed information to share with you younger folks so you will know just how thoroughly screwed you are. I found this wonderfully informative guest post at Zero Hedge that lists twenty facts about the demographic shock wave that is heading your way as the Baby Boomers begin retiring at the rate of around 10,000 per day.

So, if you are in that younger demographic, I strongly suggest that you read the Zero Hedge article so you will know what is coming and maybe you can prepare yourselves psychologically for what the rest of your lives will be like. For now, I will share with you a few of those facts and then I’ll add my two cents worth.

1. Right now, there are somewhere around 40 million senior citizens in the United States.  By 2050 that number is projected to skyrocket to 89 million.

Please keep that 89 million number in mind. I’l come back to it in a moment.

2. According to the Employee Benefit Research Institute, 46 percent of all American workers have less than $10,000 saved for retirement, and 29 percent of all American workers have less than $1,000 saved for retirement.

6. A study conducted by Boston College’s Center for Retirement Research found that American workers are $6.6 trillion short of what they need to retire comfortably.

13. Right now, the American people spend approximately 2.8 trillion dollars on health care, and it is being projected that due to our aging population health care spending will rise to an astounding 4.5 trillion dollars in 2019.

18. At this point, Medicare is facing unfunded liabilities of more than 38 trillion dollars over the next 75 years.  That comes to approximately $328,404 for every single household in the United States.

21. Overall, the Social Security system is facing a 134 trillion dollar shortfall over the next 75 years.

22. The U.S. government is facing a total of 222 trillion dollars in unfunded liabilities during the years ahead.  Social Security and Medicare make up the bulk of that.

So, younger Americans, how are you going to support your parents and grandparents in their retirement years? Where are you going to get the money to keep our Social Security benefits and Medicare and Medicade benefits coming? You can’t, you say? Think again, my young friends. What was that number I asked you to keep in mind? 89 million! Let that number sink into to your poorly educated mind some more. That is one hell of a big voting block, isn’t it?Do you really think they won’t vote to raise your taxes to keep their benefits coming? I suggest look up the voting records of the AARP. These 80+ million old folks will team up the 50+ million food stamp recipients and they are going to squeeze the last drop out of you. Count on it! We conservatives/libertarians won’t vote for those higher taxes; but we are a minority among our age demographic. You are screwed and you may as well get use to it. You will be the first generations of American who will not have a better standard of living than your parents. And, by the way, you are not without part of the blame. Since you became of age to vote, most of you have voted for progressives, haven’t you? So, don’t fret. Higher taxes and a lower standard of living is a fundamental part of the “progressive” plan. Agenda 21, sustainable living, and global warming/climate change policies are all about higher taxes and lower standards of living.

Our Founders gave the American people a constitutional republic. Unfortunately the people elected to support and defend that constitution have decided that the constitution is longer meaningful and is actually an impediment to progressive policies. So, welcome to democracy, Americans. You do understand what democracy is, right? Democracy is the system of government where 50%+1 part of the population can put the screws to the 50%-1 part of the population. I’m sorry about that. I really am.

Well, that’s what I’m thinking. What are your thoughts?

Original Post: Asylum Watch

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They Said if I Voted for Romney, They’d Come After my 401(k), and They Were Right!

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That’s right kids, they government is eyeing your 401(k), IRA, or 403(b) with great envy.  And, as for the title, since Stacey is talking blog shtick, I thought I’d borrow from his well, which is deep with all sorts of goodness.  

But, back to the seriousness.  There has been rumblings about the government taking over all private retirement accounts for some time.  Apparently, the democrats just can’t let a big pool of money sit there in private hands-it must be controlled, and redistributed, bythe kind hands of government.  Bob Belvedere at  TCOTS has more…

The Editors at Investor’s Business Daily published an excellent editorial yesterday [tip of the fedora to Memeorandum] on the coming attempt by the national government to seize control of retirement accounts, like the 401(k).

A highlight:

President Obama’s National Commission on Fiscal Responsibility and Reform, for instance, proposed lowering the cap on the amount workers could place in their 401(k)s without incurring taxes.

And nearly three years ago, Newt Gingrich and Peter Ferrara wrote on these pages about the Treasury and Labor departments “asking for public comment on ‘the conversion of 401(k) savings and Individual Retirement Accounts into annuities or other steady payment streams.’”

“In plain English,” said Gingrich and Ferrara, “the idea is for the government to take your retirement savings in return for a promise to pay you some monthly benefit in your retirement years.”

More than 60 million American workers have a 401(k) or similar — 403(b) or 457(b) — plan. But taxing these accounts or lowering the amount that can be contributed to them tax-free would do little to close the deficit and cut the debt.

Do take the time to click here and read it all [and weep].

Hmmm, let’s take a look at the following a bit more closely…

“the idea is for the government to take your retirement savings in return for a promise to pay you some monthly benefit in your retirement years.”

That sounds rather familiar, doesn’t it?  I mean, how does money get taken from me in exchange for payments when I’m retired?  Oh, that’s it, Social Security.  Well, I never expect to see a dime from that government ponzi scheme, which is why I have a 401(k).  However, if they government does to my 401(k) what they are doing to Social Security, should ever expect a single dime of that either?

I’m thinking retirement is going to be very cold and hungry.  Then again, IPAB would probably kill me off buy that time anyway.

Isn’t it great to live in the “fundamentally transformed USSA?”

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What does a 10% Pay Cut Look Like? Pretty Rough

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Oh, I know a lot of you have already gone through pay cuts and job losses, but on the other hand, the deal that you make as a teacher is that you will never make lots of money and in return will have a steady pay, job security, benefits, and pension. Okay, it’s a good deal, perhaps too good, but if the deal is too good it should be changed over time to fit with the revenue coming in to the state, with the changes cushioned by rainy day funds- that’s the responsible and expected thing to do. But after years of mismanagement of our state by the Democratic Party, combined with a Governor who doesn’t like to play games and fraudulently hid things, means that instead of responsible slow changes being made to bring teacher’s compensation more in line with revenues, teachers are being ambushed with massive cuts unheard of in education.

Here in Michigan, the affluent West Bloomfield community just cut their teacher pay 10%. Let’s assume that my district adopts the same sort of cuts (perhaps because I work in West Bloomfield?), what does that mean to my real budget? $500/month.

$500 a month is a pretty rough yearly pay cut. My family was saving for a new car and a new bed- those purchases will have to be postponed now. I have massive student loans, the cost of getting the BA and MA degrees and extra classes that the state demands; those are going to be a little harder to repay now. I run several after school clubs, all unpaid; those are probably going to have to be cancelled so I can pick up a side job or two to pay the loan on my severely underwater house. Oh, and no more spending money on my classroom (roughly $100/month); that’ll have to be cut out for sure. Although my extra work on side job will surely benefit the economy, a drop in my purchases of goods and products and services likely won’t, and the educational value students receive from my clubs will be gone, so the net result will probably be a negative for the economy and society.

Again, I know what you are thinking- boo hoo, it’s about time that teachers got their just due and joined in the pain. That’s fair enough, except I’ve already joined in the pain, sacrificing my step pay raises, paying more for my retirement and benefits, and even had a couple unpaid furlough days this year. Those are ‘sharing in the pain’, and I’m okay with another 3% pay decrease combined with a drawing down of our district’s ‘rainy day’ fund- except that isn’t what is happening. Instead they’re talking ‘add to rainy day fund’ combined with another 10% pay decrease at the local level, combined with the state discussing more contributions for retirement and benefits that could be another 5% of my pay. Those are real, rough, and harsh cuts.

Perhaps this is the pay the piper demands after years of catastrophic management of our state economy by Democrats and their liberal policies. If this is what the piper demands at the state level, I am very scared for what the piper is going to demand at the federal level. America is going down, going down hard, and going down fast, and now that it is hitting me, it’s tougher to keep hope of change alive.

Original Post: A Conservative Teacher

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