Congress is trying to incite Revolution

Congress mulls major 401(k) changes
Investment News ^ | 08 oct 08 | Sara Hansard

http://www.investmentnews.com/apps/p...=2008810079894

A wide range of sweeping changes to the 401(k) system were proposed Tuesday at a hearing on how the market crisis has devastated retirement savings plans.

http://oas-central.realmedia.com/Rea...ddle%21Middle?Chief among them was eliminating $80 billion in tax savings for higher-income people enrolled in 401(k) retirement savings plans.


This was suggested by the chairman of the House Committee on Education and Labor.
“With respect to the 401(k), it appears to be a plan that is not really well-devised for the changes in the market,” Rep. George Miller, D-Calif., said.


“We’ve invested $80 billion into subsidizing this activity,” he said, referring to tax breaks allowed for 401(k) contributions and savings.


With savings rates going down, “what do we have to start to think about in Congress of whether or not we want to continue and invest that $80 billion for a policy that is not generating what we … say it should?” Mr. Miller said.


Congress should let workers trade their 401(k) assets for guaranteed retirement accounts made up of government bonds, suggested Teresa Ghilarducci, an economics professor at The New School for Social Research in New York.


When workers collected Social Security, the guaranteed retirement account would pay an inflation-adjusted annuity under her plan.


“The way the government now encourages 401(k) plans is to spend $80 billion in tax breaks,” which goes to the highest-income earners, Ms. Ghilarducci said.


That simply results in transferring money from taxed savings accounts to untaxed accounts, she said.


“If we implement automatic [individual retirement accounts] or if we expand the 401(k) system, all we’re doing is adding to this inefficiency,” Ms. Ghilarducci said.


Rep. Robert Andrews, D-N.J., raised the issue of which investment advisers are allowed to offer workers investment advice.


The Department of Labor is considering “loopholes” that would allow advisers to offer “conflicted investment advice if the advisers work for subsidiaries of financial services companies that sell the investments,” he said.


With American workers facing $2 trillion in losses from retirement plans over the past year and Democrats expected to gain seats in the House and the Senate, actions being contemplated by the committee are an important harbinger of what could come out of Congress next year.

It sure looks like they want their own heads to roll.

If you had purchased $1,000 of Delta Air Lines stock one year ago, you would have $49 left.

With Fannie Mae, you would have $2.50 left of the original $1,000.

With AIG, you would have less than $15 left.

But, if you had purchased $1,000 worth of beer one year ago, drank all of the beer, then turned in the cans for the aluminum recycling REFUND, you would have $214 cash.

Based on the above, the best current investment advice is to drink heavily and recycle.

It's called the 401-Keg

401-keg plan. We've had that email running around here for a couple years now on and off. I'm already investing in it. Pepsi and other soda cans are becoming a part of that.

As for Congress, I'll say this.

"Congress. Hear me loudly and clearly. If you TOUCH my money, my IRA, my 401-K, you will be removed from office."

When Americans chose to participate in their OWN methods of saving money, and we count on the financial institutions of this country to keep and hold out money, pay us dividends and increase our worth then it is on us.

It's on the financial institutions to do their best and not screw with our money, lose it, hide it, steal it or cheat us out of it.

Congress has no BUSINESS, no RIGHT, and no REASON to TOUCH OUR MONEY.

In fact, I've just about had it with taxes too. I'm about to start a major protest movement if I have to.

I have never minded paying taxes - I DO mind when Congress continually argues we should raise the rates and tax us more though.

Threatening to TOUCH people's 401-ks (which I don't actually have one myself, I have other savings plans) is way beyond the pale and it's going well beyond where COngress should be stepping.

Congress, you're warned. Step back and step back now.

Americans WILL NOT stand for it.

LOL

and HEAR HEAR too!

I concur! We will remove them from office. The Government breaks everything and then tells us they can fix it. Everytime they 'fix' it, they bring us one more step closer to Socialism. I have some answers: Health Care - don't trust the Government with your help. Privatize it by allowing organizations like the Red Cross to help people who need it. Millions for charity, but not one penny by tribute. Americans are the most giving. Allow us to give to ourselves and keep the Goverment out of it. If the Red Cross does something to lose face, they know they will be out of business. For our Social Security, privatize it. Allow me to control my money. Allowing commie politicians to control it sure aint workin. I can't do worse then the Guvment. As far as our economic situation, remove all those who received money from Fannie Mae or Freddie Mack. Punish those who fought against reform. Change the law so we dont have to give so many marginal loans and then leave it alone and let the market shake it lose. I may be wrong about that, but the market started falling after they passed the relief bill. And last but not least, flood the oil market. Drill anywhere and everywhere and flood the market and build some refineries. The less we pay at the pump, the more money we will have in our pocket. The more money we have in our pocket, the more we will spend to help the economy. I may be wrong about some of these ideas, but right now I don't see the guvment coming up with anything better. And I never went to an Ivy League school. I am sure you can tell by my grammer and spelling, I barely made it thru a Public school. How come I can be an idiot and have better ideas then the jackasses running our Country?

don't trust the Government with your help.

I meant to say, don't trust the guvment with your health.

Damn Public School System! ;-)

"Hello. I'm from the Government, and I'm here to help."

and my reply to the guvment would be:

http://wzus.ask.com/r?t=a&d=us&s=a&c...2520Reagan.jpg