“Saving” Your Retirement by Spreading Your WealthTuesday, November 11, 2008
Always, it’s some government-connected elite who swoops in and convinces everyone that he (in this case, she) has the one great plan that will save us all. It’s always for our benefit – they get the limelight and thunderous applause and we get the shaft. Step 1 would be to mandate savings – 5% of each check, across the board, for everyone. Because we’re all the same, we all have the same goals, the same financial status, the same savings needs, the same time to “retirement.” We’re all equal now. So, while some people are struggling and can’t afford to save much – think of a single person making $30k/year – that’s less cash flow for them to pay today’s bills.
It’s bad enough that Teresa Ghilarducci is an ideological Communist, but she even looks like a creepy Communist. This interview is completely softball; it’s more like free advertising for the hideous witch. Here’s a recent CV of hers; she cuts a clear path. She has wanted to be a “retirement” guru for a long time. Here is an interview with her with Kirby Wilbur of KVI 570 AM in Seattle.
There is one person out there implying “nah, they aren’t going to confiscate your 401K. Ghilarducci didn’t say that.” The what is more important than the who, so stop defending her. The first step is mandating this savings plan under the management of social security in Guaranteed Retirement Accounts (GRAs). Think of it as an ATM for the government. Part two would be confiscating current 401Ks and IRAs and rolling them into the GRAs. Knowing that could be very politically unpopular (riots, perhaps?), Ghilarducci said, “Short term, I propose that since 401(k) accounts and the like are financial institutions — the bank about where 38% of the workforce can intend to save for their retirement — Congress let workers trade their 401(k) and 401(k) – type plan assets (perhaps valued at mid-August prices) for a Guaranteed Retirement Account composed of government bonds (earning a 3% return, adjusted for inflation).” —- “Short term” ? And surely, we’ll all “retire” on 3% (or less) returns.
So the battle will be to allow “voluntary” rollover or not, to confiscate or not. You know what a democratic congress and its left-wing, academia elites want to do, but what will they be able to get away with doing? I suppose that depends upon peoples’ reaction and their ability to make enough noise to make any confiscation or mandatory savings too unpopular to jam down our throats.
Here is a link to the piece by Karen McMahan in the Carolina Journal.