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It's Official: Barack Obama Wants To "Help" You Manage Your Retirement Savings
Submitted by Simon Black via SovereignMan.com,
In 1875, right around the time the United States overtook the UK as the largest economy in the world, the American Express Company established the very first private pension plan in the US.
American Express had a simple goal: attract the best and brightest employees by giving them retirement security.
At the time, this was a revolutionary idea. The concept of “retirement” was practically martian.
Back then, most people worked until they were no longer medically fit to do so.
To voluntarily stop working and live out your golden years on perpetual vacation was a complete fantasy.
But a century after American Express, thanks in large part to rising prosperity in the 20th century, retirement had become the norm.
Private companies’ pension plans covered over 40% of the American workforce and millions of Americans were receiving Social Security by the 1970s.
Then in 1974 the government passed the Employee Retirement Income Security Act, establishing Individual Retirement Accounts (IRAs) to help people save for retirement in a tax advantageous way.
Fast-forwarding to 2015, we can see that none of this turned out quite like they’d expected. The state of retirement in America is now pretty abysmal.
First and foremost, Social Security is desperately, woefully unfunded.
Again, this is not Simon Black’s conjecture. The Treasury Secretary and the Labor Secretary both sign an annual report stating that Social Security is close to “trust fund depletion”.
In fact one of Social Security’s major trust funds is literally days away from running out of money.
Federal retirement trust funds across the board, like the Railroad Retirement Fund, are also nearly exhausted.
Meanwhile, private companies have followed the government’s example, with many private pension funds similarly approaching insolvency.
You see this frequently in the news as the cost of their pension funds push airlines and manufacturers into bankruptcy. They simply cannot pay their retirees.
Not to worry, the federal government has an agency called the Pension Benefit Guaranty Corporation to bail out guarantee insolvent private pensions.
It’s like the FDIC for private pension funds.
There’s just one problem. The PBGC itself needs a bailout.
PBGC’s latest report shows a net financial position of NEGATIVE $62 billion, which is how much more they have in liabilities than assets. There’s another word for that: insolvent. So there goes that idea.
Last, there are individual retirement plans, like IRAs and 401(k)s.
Unfortunately, most Americans’ individual retirement plans are woefully underfunded.
According to the Employee Benefit Research Institute, the median IRA balance in the US was just $32,179 at the end of 2013.
And the median amount saved by baby boomers amounts to just 13% of what their projected retirement needs are.
But not to worry, once again the federal government is to the rescue.
Last week the Obama administration officially rolled out its MyRA program.
MyRA is a special form of IRA that ‘helps’ Americans save for retirement by making it easy for you to loan your money to the federal government.
Like a retirement account, the idea is to save a little bit every month or every year to be set-aside in a tax-advantageous way for retirement.
The big catch here is that for MyRA accounts, there’s only one investment: US government bonds.
At present, US government bonds fail to pay interest rates that meet the government’s officially published rate of inflation.
So with these MyRA accounts, when adjusted for inflation, you’re guaranteed to lose money.
The Obama administration, of course, entirely dismisses this criticism, saying that these MyRA accounts are for “people who aren’t saving and who have a fear of losing their principal.”
It’s pretty appalling when you think about it.
Private pensions are nearing insolvency, and the government’s guarantee agency is insolvent.
Public pensions and retirement funds are also nearing insolvency. And individual retirement funds are completely undercapitalized.
This will become an epic retirement funding crisis..
Yet the government ‘solution’ is to encourage Americans who are at risk of losing their retirement to loan their money to the greatest debtor that has ever existed in the history of the world at interest rates that don’t even keep pace with inflation.
The government claims that MyRAs are guaranteed.
But the only thing guaranteed is that you’ll lose money… whether through inflation, default, or confiscation.
The lesson here is clear: don’t rely on the government for your retirement. YOU are a far more reliable manager of your own money.
But as with anything, financial success starts with financial education.
So before you invest your money, invest your time in learning about winning investment strategies, unconventional investments, and real retirement options.
You might find that you could live in absolute luxury somewhere overseas for a tiny fraction of what it would cost you back home. (Colombia comes to mind)
Or that you can generate substantial rates of return from buying high-yielding private businesses, or through asset-backed peer-to-peer lending programs.
You won’t hear about any real solution from the government. But with a reset in thinking, that dream of sipping Mai Tai’s by the pool can still be a realistic vision.
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" If you want your savings, you can keep your savings. "
Yeah, right, motherfucker.
Fooled me once with that there health care robbery.
Go fuck yourself with a barbed wire covered baseball bat soaked in cat piss and rat droppings.
ugh... moar Shyt! time to sack it up...sadly
Packing it in and moving to small town may be your only retirement strategy left
Help? Like how cellmate Bubba wants to help you shit easier.
pods
buck ofama
Give me my 14%, plus, per year of Social Security back, a$$hole.
Heh....you think it's yours. Boy, are YOU in for a surprise.
I am already enrolled in the MySS (Social Security) which is also fully invested in Treasury Bonds (IOUs). https://www.youtube.com/watch?v=7GSXbgfKFWg
Since this subject is sort of my wheelhouse, I'm tempted to write a lengthy dissertation. Instead let me focus on ONE thing that really irks me:
"But as with anything, financial success starts with financial education."
The last subject you will ever see covered in public shools is anything remotely close to adequate financial education. Most schools they don't even teach you the bare-bones of budgeting and balancing a check book. With almost NONE teaching about debt, savings or (God forbid) the basics of investment. Running a business? Don't make me laugh- most places actively discourage such discussions. But there's always plenty of time to talk about transgender issues, right? Of course. Makes perfect sense.
AND THEY DON'T WANT YOU TO KNOW HOW IT WORKS. I offered to teach such a class at my local high school at night. No way. They thought I was going to try to sell everyone annuities. I put that to rest by offering to sign a document I would never solicit business from my students. Not good enough. I offered to never do business of any kind with my students or their immediate families FOREVER. I got the middle finger.
Another situation where the government is creating the problem so they can gain power by presenting themselves as the only source for a "solution."
If there is any doubt this is being done to the average US citizen ON PURPOSE WITH MALICE AFORETHOUGHT, doubt no longer. This is exactly how they want it. George Carlin was right.
I'd be pissed.
Put together a few disks of a video of your planned lectures, and distribute electronically or via the mail.
Put an add in the local paper "What your school doesn't want you to know!"
With your address/email whatever.
I agree completely with you about gubmint schools and their failure. But, on this one I put the blame squarely on the parents. Of course if not for the government screwing things up the parents wouldn't be able to as easily not teach these things to their children. Gubmint has taken away the need for personal responsibility.
The parents don't know jack shit about money, either. This is a multi-generational thing at this point.
I agree.
The solution, although painful for some in the short term, is for the gubmint to GET OUT of the child rearing and baby momma supporting/encouraging businesses so that people HAVE TO learn something about money - or go hungry. Amazing how well people do when they actually have to. Then the few who actually can't learn - there are efficient, compassionate (unlike gubmint), private charities to help out.
If those charities aren't already torched in the latest riot of the very "few who actually can't learn" in need of help. Nome sayin, mufuggah?
AND THEY DON'T WANT YOU TO KNOW HOW IT WORKS.
Right fucking on. So that when it is staring you in the face, you do not see it for what it is.
Fifteen years ago, i worked in the Penison industry as a Third Party Administrator. Clever title for pension bookkeeper. As a plan administrator, it was my responsibility to ensure the orderly flow month to month for the assets of the plan leaving the company and entering the plan. We never touched the actual cash, merely managed the number flow as the year progressed. We also did the testing and to make sure the plans complied with IRS law and ERISA Guidelines. It was in that second part where I saw the magic behind the curtain.
You have until the 15th of March each year to return excess contributions to a retirement plan without facing penalty from the IRS. They get it any way they can, and they do it about a billion different ways. Each plan was tested to see that the percentages under the law were not exceeded by the actual contributions made during the year. it was also allowed, to "catch-up" contributions during this period of time, also without penalty, and was standard practice to find the plan limt, compare the contributions and make the numbers match. In the rare case there were less than needed checks would be cut by the company and the numbers would be compared, employee by employee, untill they matched to the penny.
All of that sounds legit, and could be let go. But, there is another section to the plan, the "Outside Assets", that had to be accounted for as well. Special employees categorized under the plan could hold asstets outside of the investment firm, we were using Lincoln Life at the time, in let's say, other than secure locations. I saw it all.
Krugerands in the safe at the house. Boats. Cars, Golf Clubs. One asshole had his polo pony listed as an outside assest of his law firm's defined benefit plan. All of it was completely legal and on the books. Listed, filed, and checked off each year for the IRS's records. I thought it was the greatest shit ever, and I was hooked in with the whole damn industry...
Back to today. All the above to be said, I was inside the damn machine back then and couldn't see the forest for the trees. One of those wish i knew then what i know now, moments. This is the reason I am homeschooling my two little ones. It started the day they were born and will each day that we can keep ourselves above ground in the times to come. Thanks for the post, No Debt, and the trip down memory lane it sent me on.
Fucking polo pony. No shit.
One of our clients held/still holds "outside assets" in their plan. In this case it's legit- gold coins and they held exactly what they said they did- all accounted for. Unfortunately, they are held in a safe in the back of one of their stores. I don't even want to tell you what kind of business they are in or where but let's just say if they were named the "stop-and-rob" you wouldn't be too far off the mark. We recommended safer custody (not in OUR custody, before you ask), but other than that it was all legit.
What I also find hilarious, in addition to schools not teaching the basics of finance, is how the corporations have made it taboo to talk or ask about your wages or others. Talking about getting a raise is deemed innapropriate: the management always claims that the raise will come if you work hard enough.
Its brilliant: you have no idea of your wage in relation to others, and asking for a raise is looked down upon.
Funny story: my buddy worked in retail and had a women come up to him and ask him if it was 50% off all items or 50% off the final amount. He said its the same. The women would/could not believe him. He actually had to take a calculator to show her that it is the exact same thing. Another time a women asked him why the 100 dollar item was still 70 with 30% off. She actually thought that meant it should cost $30.
Ive had job applicants unable to round the nearest hundredth decimal place, unable to add fractions, etc. And these were for engineering positions.
Murica so dumb....
<shudder>
Yeah, I know. But if you told them their EBT benefits were being cut by 30% they'd probably know how much that was to a fine decimal point.
Yep, can't make change for a dollar, but knows there are 28g in an ounce.
we all know it is really 31, but who is counting. ;)
but they taught me how to fill out a form 1040
this program is at least as good as when social security was rolled out, but then again roosevelt was a socialist puppet too. at least he wasn't a half breed muslim obamanation.
MYNIGGRA
MY No Interest Government Guaranteed Reverse Annuity
Bend over, Barack wants to help you.
Ha ha. I'm not even going to try and top this one. Thanks.
Was tempted too, nope, can't do it
Go fuck yourself with a barbed wire covered baseball bat soaked in cat piss and rat droppings.
Now that is funny.
Very clear image ... reminds me of a bar in Subic Bay a long time ago ...
you were fooled by the healthcare robbery!!!!! What? You didn't see that coming? Holy SHIT! Batman.
OT, worth a look, average college dumb ass V. Neil Cavuto: https://www.youtube.com/watch?v=Zmji36q8E4o
zuckered FartBook users will be most willing to surrender their "deposits" to the Banksters so long as they get their daily KKKardassian updates ..... come on, who doubts GLAMOUR magazine awarding Bruce Jenner the WOMAN of the Year !!!
yes the PuppetMasters are gloating & gleeing these days, FOSuRE !!!!
3 guarantees in life now.....death, taxes, and MYRA losing value.
It's official: America wants Obama and all the looters to FOAD!!!
retirement accounts are only a way for the gov to quantify its future tax income..
It's already been spent.
Hahahaha, only a fool doesn't realize that his words on this can have only 1 of two meanings:
1) I will give currency printing-presses to the masses so they can retire (insane, but possible from this crowd)
2) I will steal your savings retirement and give you a claim check on nothing.
Both have the same outcome! lol
Edit: After actually reading this article... I suddenly want to buy more PMs and Bitcoin...
We Corzine'd some folk's money.
'ALL' he has to do, is to not Corzine the Social Security for the next 10-20 years.
Suspect though, that 'The Most Selfish Generation' -- the Boomers -- have already almost emptied that larder. May the Lord take a liking to them REAL soon, and recall them all.
"'The Most Selfish Generation' -- the Boomers"
Just curious, are you referring to those of us that have been working and paying into the system for twice as long as you've been alive?
Fuck off. You worked and paid into the Social Security system, all right, but you also voted for 50 years of Congresses which looted the trust fund so your taxes could be lower than necessary to pay for all the government you wanted, and hey, by the way, promised you (i.e., you promised yourselves) retirement and health care benefits far in excess of what you ever paid in. You've stolen and squandered all of your Social Security contributions, as well as mine (I'm 46). But hey, it's all good. You're now spending my children's and grandchildren's future tax payments. Time was, adults would suck it up to protect younger generations from hardship. Not the Baby Boomers, though. You paid in, Goddamnit, so damn my children. Fuck you in your fucking face.
It was a Ponzi from the get-go. Even the very first recipient of SS (https://en.wikipedia.org/wiki/Ida_May_Fuller) received hundreds of times what she paid in.
Count on receiving fuck all and you will be OK.
It's getting so bad, so fast, I'm expecting that even my parents will receive fuck all.
...moved to Ohio rural ...from Kansas ...1972 ....little boy was i....i remember the smart young woman teacher showing us paper "money" promises from the different states from WAY back in the 1800s.... civil war days... never did forget her and other teachers afterwards in the 1970s telling us NOT to count on social security ....it would not be there for us ....
Wow. Lucky were you in 1972. And, in rural Ohio of all places. That "smart young woman teacher" was someone very special. A game changer individual. I wasn't so lucky to have been schooled by the likes of her.
Well Hell, that FED will keep "inflation" low for thiry years at least.... short $ZROZ
Look guys, he's being completely honest with you. Obama wants everyone to put THEIR money in MY retirement account.
If this was Hillary, everyone would be wise to the scam right away.
If this was Hillary, IRAs would be abolished and MyRAs would be mandatory.
Oh don't look now!
Here comes PRESIDENT CANKLES!!!!
as the Maltese Falcon is recovered by Prezz Kankles, "I'm shocked, ShocKed that there is MuffDiving in This Establishment ! " ....
Hitlery would have her Human HooverHumaden be the backstop for all deposits, not to worry ... safe with the Hillzz ya know !!!!!
and no, this is the Amurrican public- would unfortunately NOT be wise to the scam as in 2009, NO Kidding, the FBI announced publicly that the USA public is the MOST GULLIBLE public in the world ....
as the AJ show had on guests this week who said " DO NOT UnDERESTiMATE FLUOriDE" it will make a person STUPID! USA has been adding this StupidEnhancer to the water drinking supply since the 1950s. Sorry.
Hill has already advocated this idea in the past. You see, the nigger currently in office doesn't have enough time to force universal adoption; the creation of the MyIRA is just the first step. However, the next president to be voted in by niggers, spics and myriad foolish white women will actually mandate the universal adoption. It happens like that--step by socialistic step.
PS. And for all the flamers who tell me what a racist dick I am:
I know you are but what am I?
I know you are but what am I?
I know you are but what am I?
. . .
I hate people who refer to themselves in the 3rd person.
pods does too!
(we used to play Third Person Tuesday at work, good times)
As for the Ass Munch in the white house, I don't listen to what they say anymore. I just come right to the comments.
Figure if they are saying something, it is not in my interest or is an outright lie.
Either way, best thing to do is to not let that shit get in your head.
pods
"Figure if they are saying something, it is not in my interest or is an outright lie."
Smart man.
"I hate people who refer to themselves in the 3rd person."
Is that why you didn't vote for the Bob Dole?
the Dole was roLed out last week for the GOP .... fwiw
The next treasury buyers after China. Count on forced payroll deductions. That's all it is.
I would give money to Jimmy Swaggart before trusting Barry with it
You might find that you could live in absolute luxury somewhere overseas for a tiny fraction of what it would cost you back home. (Colombia comes to mind)"
Yep, but not Colombia but Panama!!!
You don't want to be a gringo in a brown country if the shit ever does really hit the fan.
How can young people have savings if the majority of people under 35 are in debt?
Yeah right, 40,000 dollar student loan with 10,000 dollars in the bank isn't savings.
Yes, send this crook your retirement money. He will send it to ISIS or Ukraine's neo-nazi aidar and azov battallions.
help deez nuts...
That made me laugh out loud thanks.
Hey Barack.. LIsten carefully you stupid asshole - "Fuck Off and Die!!!"
I was going to say "fuck you" but the faggot should think it's a offer.
Goldman selling CDS yet on individual MyRA plans?
US Treasuries = new-age war bonds
^ lol fiat
How long before this is compulsory, or they make everyone roll their IRA/401k into this thing? My guess is not long.
for the sake of "fairness" I'd imagine...
Yes, great then everyones money can help fund bombs that blow up schools in Donetsk.
If they can make you buy insurance from a private company they sure can make you buy the .gov paper.
You beat me to it. Sounds like they just created the holding account for mandatory IRA/401k confiscation. You know they want to do it, Shiela Jackson Leigh actually proposed it in 2008. Argentina here we go!
This sounds like one of those "Kenyan E-mail Scams". Hey, wait a minute.......
This sounds like one of those "Keynesian E-mail Scams". Hey, wait a minute.......
fixed it
Is Obama a Nigerian Prince?
Can't wait for that shit to be mandatory confiscation with each paycheck.
sign me up.
Obama could help millions of Americans reach a much more secure financial future by endorsing and promoting the "Pay off your current debts as quickly as possible and don't incur any new ones" plan. In layman's terms it would be known as the "Fuck the bankers!" plan.
Posters, TV ads, educational kits distributed to schools, etc. All part of the Obama Hope And Change initiative to fundamentally change the way America works.
And when you get older and actually need it Uncle Sham will have spent it all along with your S.S. too. They arent satisfied with taking just your S.S. anymore. Now we'll double FUCK YOU! Why would I want a government retirement fund? I might as well sit around with matches burning my money? ? I heard they just announced they were cutting some of the benefits just before the program starts for conditioning purposes. An organization that has 19 trillion in debt probably wont be the place I will be keeping my money for the long hall.
another roach motel like the 529 no doubt
Yeah GFY!!!! " If you want your savings, you can keep your savings. " Fucker
Trust is the opiate of fools. The Liar-in-Chief's promises are lies.
Wave and say "bye bye" to your pensions.
What is a "pension"? How am I doing?
Pretty sure MyRA is them talking to the account holder in the first person. MyRA is actually TheirRA
20 trillion in debt and you wanna help?
No thanks. I'll pass.
Don't walk away from this deal, RUN
It's more of those oats in the head, long oats !
Creeping fascism. It's obviously the government's solution to the loss of faith in 401ks. If people fall for this, they deserve it.
Yesterday I had 5 clients at the table of the local coffee shop. When push went to shove, and mind you this was 20-30 minutes into the circle jerk of rhetoric, I said to 3 of them : "You can't hold onto your house and maintain your standard of living. Have you thought about Panama?"
Do you know what they said? I'll tell you. "I can't leave my house. My mother and father owned that house"
Flip side they are looking at a 35% replacement ratio for pre-retirement funding. But Grandma shoving down to the cellar to get a six pack of TAB trumps the reality of their cash flow to support said illusion."
I told them to chose another advisor.
Luckily my job never entails this sort of discussion, and I've long since stopped engaging friends and family on the issue. The delusion of privilege is bitch to overcome.
But hey,,, we got plenty of money for new battleships,,, new aircraft carriers,,, billion dollar fighters,,, billions to fund 70% of NATO,,, billions to fund coups in nations like Ukraine,,, billions to drop bombs in the middle of nowhere to pretend were fighting terrorists while billions more are spent arming them,,, trillions for banks,,, more trillions for lost wars,,, billions for EBT,,, billions for section 8 housing,,, billions for buildings and spooks to spy on us,,, billions for law enforcement ammunition, tanks and non lethal (lethal) weapons to put us down if we get cranky,,, and God only knows what else.
Mention military cutbacks and all you hear are screams of horror from just about everyone.
No one ever mentions this. You never mention the Social Security trillions stolen by the government and spent. Why do you want to starve grandma getting a $600 pension. I dare anyone to live on that.
As far as government wanting people to save it's real easy. Jump up the interest to 5% where it should be. Of course that won't happen because it will cause immediate default by the largest spender and smallest saver on the planet... The US government. Bring back the production you gave away, stop the H1B Visa scam putting Americans out of work after they finish training their replacements.
That would be a nice start.
But you forget even though its your money everything else is more important because they have it.
hahahahahahahahahahahahahhahahahhahahahahahahahahahaha!!!!!!!!!!!!!!!!!!!!!!!!!
Turn the other cheek. LOL
If there's one lesson about money that needs to be taught to your kids, it's that once you get some in your own two hands, you never just hand it over to someone else based on some vague promise. That's what the so called retirement system relied upon; the idea that you MUST put other people in charge of your future.
In the beginning, it sounded like a good deal since the companies were running their own pensions and the government added to that. But once that ended and everyone was forced into the stock market one way or another things changed. The propaganda about losing out on gains versus savings account interest rates came first. Then came the near zero rates of the last 15 years. Add in the supposed "tax advantages" of relisting your already earned money with taxing authorities through IRA's and 401k, and you have full accountability of everyone's future to the "government" bureaucracy. Is it any wonder they are taking this next step?
If you have cash in hand, fuck "tax advantages". Fuck trying to beat some interest rate a con artist is selling as market return. It's all a scam. You either have your resources, or you have handed them over to someone else for no damn reason.
Your money is locked up in some scheme under penalty of early withdrawal because you have been told at some future date, whoa nelly you are in for a treat when you are 70. That money I took from you is really going to pay off by gum, and you'd be a fool to pass up this opportunity. Think of the tax savings, and the 12% historical rate of return on the stock market! And you aren't one of those mattress-stuffing kooks, right? What would the neighbors say?
What a load of horseshit. They took almost all of it before and now they are coming for the rest.
Obama could not manage himseld out of a wet paper bag.
It takes a truly White Housenigger to devise a .gov scheme to give people more free shit, and then stealthily steal all the free shit back . . . while using heir funds to temporarily support the monetary foundation on which .gov's power lies.
The way fuckups like him are shaping the world I'd rather invest in food, supplies, and lead bullion for my retirement fund.
The "Special MyRA"
It's so special it's the only plan,
It's the only plan for you!
It's so special it's the only plan that can widen your kazoo,
'Cause it's so special, special,
Special in a stealthy way.
Yes it's so special, special,
Stealing all your hard earned hay!
Fuck you citizens! Hands in the air!
The military-industrial complex is also woefully underfunded as there isn't even a dedicated tax for that. But for some reason that's rarely an issue. Could it be that the money going to the geezers doesn't end up with the oligarchs as fast?
Wait a minute, after lying thru his teeth about ACA helping us, he now wants to put the final stake through our hearts with a MyRA?
NIRP bonds. What a fucking deal. Suck my $%^# Barack.
"Change you can believe in!"
What the president of the US meant is that when he was finished, all Americans would have is "change" left in their pockets
Oh, & "You can keep your pensions, just like you kept your doctor with Obamacare! There won't be anything left in it, but you can keep it!"
Suckers.
Here's a question you'll never have answered.
How can a country be "capitalist" when everything the government & central bank does destroys capital?
QE, ZIRP, the Fed causing inflation on purpose all destroys capital = destroys the economy...eventually. It's taken the Fed since 1913 to destroy the USA. Slow job well done!
So, when is Bruce Krasting going to weigh in about this wonderful new self-funded replacement for Social Security?
This kind of sucks all over. You can add on a health savings account if you want from United Healthcare's bank with a few billion on deposit and with an insurance side that sits on $136 billion in reserves. You'll get a Master Card to empty it out and once you hit that golden number of $2100 on deposit, guess what, they'll have you putting it in mutual funds...you can't make this up, so add this toe the MyRA and we're just screwed.
http://ducknetweb.blogspot.com/2015/10/united-healthcare-owns-bank-optum-bank.html