Posts Tagged ‘401k’

Poland Confiscates Half Of Private Pension Funds To “Cut” Sovereign Debt Load

While the world was glued to the developments in the Mediterranean in the past week, Poland took a page straight out of Rahm Emanuel’s playbook and in order to not let a crisis go to waste, announced quietly that it would transfer to the state - i.e., confiscate - the bulk of assets owned by the country’s private pension funds (many of them owned by such foreign firms as PIMCO parent Allianz, AXA, Generali, ING and Aviva), without offering any compensation. In effect, the state just nationalized roughly half of the private sector pension fund assets, although it had a more politically correct name for it: pension overhaul.

By way of background, Poland has a hybrid pension system: as Reuters explains, mandatory contributions are made into both the state pension vehicle, known as ZUS, and the private funds, which are collectively known by the Polish acronym OFE. Bonds make up roughly half the private funds’ portfolios, with the rest company stocks.

And while a change to state-pension funds was long awaited - an overhaul if you will - nobody expected that this would entail a literal pillage of private sector assets.

Read more at ZeroHedge.com

Now He’s After Your 401(k)

The White House pulls a switcheroo on retirement savings accounts.

How many times have you read financial-advice stories lecturing you to max-out on your IRA, save as much as you can in your 401(k), and even pay taxes now to change your regular IRA into a Roth IRA that will be tax-free until you die?

Well, be careful how much you save.

Read more at Wall Street Journal

Here Comes Obama’s Raid On YOUR Retirement

Yeah, it’s going to do you a lot of good….

President Obama’s budget, to be released next week, will limit how much wealthy individuals – like Mitt Romney – can keep in IRAs and other retirement accounts.

Under the plan, a taxpayer’s tax-preferred retirement account, like an IRA, could not finance more than $205,000 per year of retirement – or right around $3 million this year.

Read more by Karl Denninger at market-ticker.org

How They Will Steal Your Retirement

I’ve laid this out before but it’s time to do it again, because it’s coming folks.

The recent ditty on how “nobody needs more than $3m for retirement”, defined as “whatever you need to get a $200,000 annuity”, is just one facet of how this will play out.

Since I started writing The Ticker I have been repeatedly asked where one should put their assets to evade confiscation, whether through outright acts of theft, devaluation or any other means.

Read more by Karl Denninger at market-ticker.org

Broke U.S. Government Eying Your Retirement Savings

–SNIP– You probably thought the Dodd-Frank Act was all about reining in greedy big banks and Wall Street predators.

Well then, what is the Consumer Financial Protection Bureau it established doing planning to “help” people manage the $19.4 trillion they’ve managed to save for their retirement?

CFPB director and longtime Democratic politician Richard Cordray earlier this month told Bloomberg News that managing retirement savings is “one of the things we’ve been exploring … in terms of whether and what authority we have.”

Every such new creature legislated into existence by our elected officials wastes little time before seeking to expand its power — always with the best intentions, of course.

There always ends up being an excuse to do things the law doesn’t give you any authority for, and the CFPB’s Office for Older Americans being headed by another big government Democrat, Hubert H. Humphrey III, is further cause for worry.

What business, exactly, does a U.S. government that has rung up over $16.6 trillion in red ink have giving consumers advice on how to save money?

Read more at IBD

Fiscal Cliff: Why Congress Might Have to Mess with the 401(k)

One of the earliest fears about tax-favored savings accounts like IRAs and 401(k) plans was that when this pool of savings grew large enough Congress would not be able to resist tapping it to help solve the nation’s debt problems. We’re about to find out if those fears—persistent for decades—have been justified.

Everything including the sacred mortgage deduction is on the table as lawmakers wrestle with the fiscal cliff, a year-end avalanche of scheduled spending cuts and tax increases. With a combined $10 trillion sitting in IRAs and 401(k) plans, retirement accounts make a juicy target. Some of this money has never been taxed, and under current law never will be.

Read more by Dan Kadlec at Time.com

WARNING: This is the liberal position. You have been warned.

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