Comments on: Will Your Uncle Sam Be Dictating Your Retirement Funds?

By: Lean - Life - Learning « Eliminate The Muda!

Lean - Life - Learning « Eliminate The Muda! — Sat, 20 Feb 2010 11:34:46 +0000

[...] Finance by the Book – Will Your Uncle Sam Be Dictating Your Retirement Funds? – When I first read this I had to check the calendar to make sure it wasn’t April fools! I [...]

By: Steven and Debra

Steven and Debra — Fri, 12 Feb 2010 00:31:00 +0000

Fortunately, we have choices as well. They may not be easy choices in all cases but we can’t deny we have them.

Some many have the opportunity of taking their money out of their plans by paying taxes and penalties while others may be able to take a portion of the money out in the form of loans. Both groups could then use that money to hedge against the inflation risk by purchasing tangibles.

Another option would be to acquire foreign real estate through an IRA. It is doubtful Uncle would require the repatriation of money invested in foreign real estate due to the illiquid nature of the investment.

Just a little food for thought.
Steven and Debra´s last blog ..Are YOU a Hoarder? Are You Sure? (Part IV of a Four Part Series)

By: joeplemon

joeplemon — Thu, 11 Feb 2010 14:53:32 +0000

Steve and Debra,
Let’s see…what choices does our Uncle Sam have to deal with the spiraling national debt?
Raising interest rates, as you mentioned, on Government bonds? Economic disaster.
Raising taxes? More economic disaster.
Print more money? Hyper inflation…more economic disaster.
IRAs and 401(k)s? Hmmmm.

By: Steven and Debra

Steven and Debra — Thu, 11 Feb 2010 04:08:32 +0000

It’s interesting to note that our national debt is 14 trillion dollars which equates to the total amount in IRAs and 401(k)s. Is this a coincidence?

The Chinese are less enthusiastic these days to buy our debt and are shoring up their own domestic economy to make themselves less dependent upon tapped out American consumers. The only mechanism the U.S. has to entice fresh buying of treasury bonds is interest rates. Raising interest rates in our current economic environment would be economic suicide. Can you imagine what would happen to whats left of the real estate market if that happened?

IRAs and 401(k)s have a giant bulls-eye on them. If they can force people into annuities backed by long-term treasuries, in this low interest rate environment, they win and IRA and 401(k) holders lose. Annuities are a much better deal after interest rates have shot up to double digits and begin a long-term decline. Annuities are an insurance product and we need to look no further than AIG to question the solvency of that industry.
Steven and Debra´s last blog ..Are YOU a Hoarder? Are You Sure? (Part IV of a Four Part Series)

By: Ethan

Ethan — Wed, 10 Feb 2010 20:25:43 +0000

Yes, it is the opposite. As someone once pointed out, “What difference is it to me if a decision is forced upon me by a dictator or by half of my neighbors? Either way my right to free, peaceful action has been nullified.”

I view voluntary social cooperation as a huge boon to the human race, but I view aggression and fraud as evils regardless of what banner flies over them. Seizing the results of someone’s labor is equivalent to seizing hours from them and directing them to carry on activities of your choosing. That is immoral: half my neighbors have no more right to do this than does one dictator.

By: joeplemon

joeplemon — Wed, 10 Feb 2010 19:37:11 +0000

Ethan,
I certainly hope the current environment would not support such a radical move, but the environment is ever changing. We live in challenging times: times that require wisdom and savvy; times that require us to take a stand while the world around us is ever shifting.

Fortunately, when we stand on the rock of Christ, we don’t have to worry about shifting sands. He never changes.

By the way, I noticed you used the word “enslavement” twice. Sort of the opposite of freedom, isn’t it?

By: Ethan

Ethan — Wed, 10 Feb 2010 19:20:03 +0000

It doesn’t seem like the current environment would support such a radical move, but like you I’ve long ago stopped saying “they would never do that”. The ongoing socialization of our lives and livelihoods is a saddening trend. It is nothing short of the enslavement of each citizen to every other citizen, which is no more moral or positive than any other sort of enslavement.

By: LeanLifeCoach

LeanLifeCoach — Wed, 10 Feb 2010 04:10:45 +0000

Joe: Keep up the great work… You’ve been Tip’d – http://bit.ly/b26uar
LeanLifeCoach´s last blog ..Personal Finance Can Be Fun!