Closing Thought–07Feb17

The magic wand known as the EO……

May I see a show of hands to all the working stiffs that have a 401(k)?

Recently I wrote about something brewing with these plans….

Source: The Magical 401(k) – In Saner Thought

I revisited this subject because of something I read the other day…..

A new executive order the Trump administration introduced on Feb. 3 would drain your 401(k) to fund the private equity industry by repealing a previous Department of Labor fiduciary rule, the Intercept reports.

The fiduciary rule, which was to go into effect in April 2017, “would have forced investment advisers in workplace retirement plans like 401(k)s to operate in their clients’ best interests, rather than recommending high-cost, high-risk products that offer the advisers kickbacks and perks,” according to the Intercept.

Trump’s order specifically outlines the intent to “empower Americans to make their own financial decisions, to facilitate their ability to save for retirement and build the individual wealth necessary to afford typical lifetime expenses.”

Source: Trump executive order will benefit the private equity industry at the expense of your 401(k)

If you are depending on a 401(k) for your retirement then please pay attention to what is passed in DC that could effect your holdings…..

With that I end my posting day…..enjoy your evening and I will return asd soon as the coffee is made….peace out…..chuq

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7 thoughts on “Closing Thought–07Feb17

  1. On a smaller scale, we had something very similar happen here. I paid into workplace pensions for 34 years. The government sneaked a little-publicised law through, that allowed my employers to ‘contract out’ part of my pension without telling me, and basically do as they saw fit with it. This was then deducted from my State Retirement Pension (without my knowledge) by a law passed in 2015, just one year before I was due to receive said pension. The employers were supposed to make up the shortfall (almost £400 a month, a significant sum) but just told me that they no longer had the funds to pay it. In short, the government and my employers (who by coincidence were government agencies) literally robbed me of almost £5,000 a year, and there is absolutely nothing I can do about it.
    Laws that help some (employers and the rich), and rob ordinary people.
    Frustrated, or what? Is it any wonder that I remain on the ‘Hard Left’?
    Regards, Pete.

    1. I was fortunate that my job had a strong pension fund….but just before I retired new leadership was trying to mover to the 401(k)….glad I got hurt and had to retire….chuq

  2. Much of what happens in the political world is tied to the economic world, as has been obvious for a long time, in order to benefit those who engage in the highest levels of theft, er, banking and government. Depending on either one to live, or retire, is denial of human nature, which will serve self-interest before society, always. Since both money, and government, are illusions of reality, with no other value, or power, than we give them by our belief in them, this makes the concept of retirement pretty much a matter of luck for those at the lower end of the hierarchy so important to most humans. People seem to forget; in order for some to win, the rest must lose. That’s how it is when one engages in such hierarchal behaviors; they only lead to conflict, and misunderstanding, which works to favor those who lie & cheat….

    I forget who said this, but it is absolutely true for humans…. all gold is fool’s gold…..

    gigoid, the dubious

      1. ‘Tis indeed wise to at least know how to play the game, even if one doesn’t put all their eggs in that particular basket, or leave themselves dependent on it… Having lived with, and without the retirements I managed to accrue, I know I can make it without, especially now I’m no longer held down by the physical issues that were a result of allowing medical science, as it exists today, to provide me with care. Once I took over the care myself, I became able to handle whatever happens, money, or no money…. But, most people never think about it at all, so, it’s good ffolkes like you are around to clue them in…. if they’ll listen, which has a low probability… If they hear it, they probably already knew it…. In any case, getting screwed remains a choice, one most people never even know they need to make….

        Your compassion does you honor; it’s their choice to listen, or not…as is thinking, in general….

        gigoid

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