The Left’s Ongoing Assault on Your 401(k)
Liberals won’t stop even when they own everything.
Check it out:
What Frontline did last night was impugn the entire concept and structure of the 401(k). They teased it this way: Retirement is big business in America, but is the system costing workers and retirees more than what they’re getting? And it proceeded to talk about how 401(k)s are a rip-off because the money that you deposit, you contribute to your 401(k), has to be managed by somebody, and they’re charging outrageous fees and commissions, eating up ever larger amounts of your 401(k), and so what should you do? Let the government handle it for you. Buy government securities, buy savings bonds, buy Treasury bonds and bills and stick with the indexes and let the government do that for you.
Now, I was wrong about my wild guess of what the show was about, but I do know that there is a plan afoot to eliminate the 401(k) altogether. But the plan is — well, it was. I don’t know how it’s incrementally changed, but the plan was to buy your 401(k) and give you exactly what it was worth a couple of months or a month before the market crash in 2008, buy everybody’s 401(k) at whatever it was worth before the crash and then every year give you one to two, maybe 3% interest on it. And that’s it. And the reason is that it’s costing the government too much money. Your contributions are tax-free. You get to donate percentage of your income to your 401(k) before any of your income is taxed.
So it lowers the amount of your income that’s actually taxed, that means the government is losing money. Yes, it’s so true. The government is losing money. So some babe at New York University or the New School or whatever’s got a plan that I just outlined, and it’s very popular in Congress and may happen, but Frontline was pushing index funds, which are complicated, but they’re supposed to cost less, and they give evil Wall Street bankers less profit. So the evil Wall Street bankers were the target, the focus of how you are being ripped off by the free market. You’re being ripped off by capitalists on Wall Street. The government can handle it for you much better.