Date registered: Jul 2007
Vehicle: 1973 450 SL
Location: Castle Rock, CO
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Kiss your 401K goodbye to seizure by feds.
The House Education and Labor committee held a hearing with testimony from Teresa Ghilarducci from the New School on October 7, 2008 regarding her proposal for the Social Security Admin to absorb our 401k's and conjure up a gov't run defined benefit program to give old folks a stable, protected income. You can read about it in 4/23/08 edition of Money Magazine or buy the book. I have a few details:
401k is transferred to the SSA, each account is given $600 per year cash, account is invested at 3% in gov't bonds, retirement payouts are made along with or included in SS checks. If you die two months after retiring, gov't keeps your money.
There is a separate legislative movement to stop tax deferrals on 401k's.
Welcome to the Democratic Socialist party agenda.
70% Of Pre-Retirement Earnings, Guaranteed for Life: Teresa Ghilarducci, The New School, Proposes a Viable Pension
Plan That Provides Older Americans with the Financial Stability They Need
NEW YORK--(Business Wire)--
In When I'm Sixty Four: The Plot against Pensions and the Plan to
Save Them (Cloth $29.95, ISBN: 978-0-691-11431-6, Pub date: June 11,
2008), economist and retirement reform expert Teresa Ghilarducci shows
that the transition from guaranteed benefit programs like pensions to
guaranteed contribution programs like 401(k)s has been disastrous for
most Americans. While many of us look forward to a leisurely life in
retirement, financed by our 401(k)s and the equity of our homes, the
reality is that for over 70% of Americans, the majority of our
retirement income will come from Social Security and that less than a
fifth of our income will come from personal finances, including 401
(k) plans. In fact, the average American, approaching retirement age,
has just $50,000 in their 401(k) plan and $73,000 in home equity--a
meager cushion in the face of rising healthcare and housing costs.
When I'm Sixty-Four makes a no-holds-barred argument for a new
national pension program. Ghilarducci proposes a new system of
Guaranteed Retirement Accounts (GRAs) that would provide working
citizens with a guaranteed income of 70% of their pre-retirement
earnings. Ghilarducci proposes limiting tax exemptions on 401 (k)s and
other voluntary retirement accounts and using the savings to finance
the GRA program. Her solution costs the government nothing and
provides retirement savings for millions people who currently have
Ghilarducci provides a new way of thinking about retirement--when
and how we should expect to retire; how the experiences of white and
blue collar workers, men and women differ; and how the decisions we
make today impact our quality of life in retirement--that will be of
interest to every working American.
Praise for the Book:
"Policymakers know that the baby boomers are facing a precarious
retirement future. But most baby boomers do not appear to be
concerned. Ghilarducci's analysis is a warning call designed to shake
up the complacency. She proposes a bold plan to shore up the eroding
economic foundations of retirement in America." --Laura D'Andrea
Tyson, University of California, Berkeley
"At last! A robust, reliable, and highly readable reaffirmation of
the right to retire. Teresa Ghilarducci is America's leading pension
economist, defender of Social Security, and scourge of schemes to bilk
the elderly. Here she tells it straight: what's right, what's wrong,
and what should be done." --James K. Galbraith, University of Texas,
About the Author:
Teresa Ghilarducci, after having taught economics for twenty-five
years at the University of Notre Dame, now holds the Irene and Bernard
L. Schwartz Chair of Economic Policy Analysis at the New School for
Social Research. She is also the 2006-2008 Wurf Fellow at Harvard Law
School. Her books include Labor's Capital: The Economics and Politics
of Private Pensions.
WHEN I'M SIXTY-FOUR
The Plot against Pensions and the Plan to Save Them
Cloth / ISBN: 978-0-691-11431-6 / $29.95 / GBP 17.95
384 pp. / 6 x 9 / 7 line illus. 28 tables.
Pub date: June 11, 2008
Charter member of the Vast Rightwing Conspiracy and proud of it.
God Bless the America we're trying to create.
--Hillary Rodham Clinton