Dan Dennings has written an excellent warning about what the feds are going to try to sell us. Here is just a few highlights:
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, according to Assistant Labor Secretary Phyllis C. Borzi and Deputy Assistant Treasury Secretary Mark Iwry, who are spearheading the effort.
Now this sounds pretty good so far, right? I mean everyone wants to help the USA.
“Annuities generally guarantee income until the retiree’s death, and often that of a surviving spouse as well. They are designed to protect against the risk that retirees outlive their savings, a danger made clear by market losses suffered by older Americans over the last year, David Certner, legislative counsel for AARP, said in an interview.”
Still sounding good, right?
Now ostensibly, the plan to offer an annuity option for 401(k) plans will seem sensible. But don’t be fooled.
This is the beginning of a money grab by the Feds for the $3.6 trillion in assets held by U.S. 401(k)s. The Feds need that money to finance the deficit. This is where some of the money to fund the deficits may come from, answering a question we asked earlier in the week. What you can’t take, you’ll have to print.
Read the entire article by Dan Denning VIA Flopping Aces
The entire thing smells fishy to me.
