Tuesday , 15 October 2024

Might the Gov’t “Borrow” Your IRA to Fund Its MyRA? (+2K Views)

…It’s not like government spending is going down anytime soon; itretirement-planning-300x300 already takes nearly 100% of tax revenue just to pay mandatory entitlements like Social Security, and interest on the debt, plus the government itself estimates that the national debt will hit $30 trillion within ten years. Bottom line, they need more money – lots of it – and there is perhaps no easier pool of cash to ‘borrow’ than Americans’ retirement savings. $7.3 trillion in U.S. IRA accounts is too large for them to ignore.

[The original article, as written by Simon Black (sovereignman.com), is presented here by the editorial team of munKNEE.com (Your Key to Making Money!) in a slightly edited ([ ]) and/or abridged (…) format to provide a fast and easy read.]

If you think it’s inconceivable for the government to borrow your retirement savings, just consider the following:

1) Borrowing retirement funds is becoming a popular tactic

Forced loans have been a common tactic of bankrupt governments throughout history plus there’s recent precedent all over the world; Hungary, France, Ireland, and Poland are among many governments that have resorted to ‘borrowing’ public and private pension funds.

2) The U.S. government has already done this with federal pension funds

During the multiple debt ceiling fiascos since 2011, the Treasury Department resorted to “extraordinary measures” at least twice in order to continue funding the government…[by] dipping into federal retirement funds and borrowing what they needed to tide them over. In fact, the debt ceiling debacles were only resolved because the Treasury Department had fully depleted available retirement funds.

3) They’ve been paving the way to borrow your retirement savings for a long time

Two years ago the government launched a new initiative to ‘help Americans save for retirement’ called MyRA (the idea is for people to invest retirement savings ‘in the safety and security of U.S. government bonds’)… They’ve also proposed a number of legislative reforms to ‘encourage’ American businesses to sign their employees up for “Making Your Retirement Accessible”, or MyRA. [In fact,] just last week, Congress introduced the MyRA Act which would charge a penalty ($100 per worker per day) to employers whose workers don’t have a retirement account. Imagine a small business with, say, 10 employees who didn’t have retirement accounts. The penalty to Uncle Sam would be a whopping $30,000 PER MONTH. There’s a word for this. It’s called extortion and, obviously, when facing a $30,000 monthly penalty, an employer will pick the easiest option, MyRA.

This isn’t about fear or paranoia. It’s about facts and the reality is that the government in the Land of the Free is moving in the direction of borrowing more and more of your retirement savings.

If you still remain skeptical, remember that…just 45-days ago a new law went into effect authorizing the government to strip you of your passport if they believe in their sole discretion that you owe them too much tax. No judge. No jury. No trial. They just confiscate your passport.

This is happening. It’s a reality that rational, thinking people should plan for and, yes, there are solutions…[such as] setting up a more robust retirement structure that protects your savings and gives you much greater influence (i.e. investment options) over your funds…

(If you want to learn more about the risks and solutions for your retirement savings, click here to access our free black paper.)

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