Wednesday, February 6, 2013

Retirees need to take heed as the government seeks control over your accounts

As the U.S. government drowns in a debt of over $16 trillion, and revenues from taxes continue to decline in the economy, there is still one pot of gold that is ripe for the taking. 

That of your retirement accounts.

The U.S. Consumer Financial Protection Bureau recently suggested that it was imperative that they have a greater role in managing the over $19 trillion in private accounts held by the American people, and like Social Security, make them accessible to Federal control and oversight.

The U.S. Consumer Financial Protection Bureau is weighing whether it should take on a role in helping Americans manage the $19.4 trillion they have put into retirement savings, a move that would be the agency’s first foray into consumer investments.

“That’s one of the things we’ve been exploring and are interested in in terms of whether and what authority we have,”bureau director Richard Cordray said in an interview. He didn’t provide additional details. - Bloomberg

This idea has already been bantered around in Congress, as former Speaker of the House, Nancy Pelosi suggested that the government should nationalize all 401K, IRA, and private retirement accounts as a means to resolve the credit crisis, and fiscal cliff.

With GDP for the 4th quarter coming in at a negative .1%, and the national debt nearly 104% of the annual production for the economy, do not be surprised if the government attempts to 'confiscate' the nearly $20 trillion in untapped assets, both to spend as they see fit, and to provide collateral to the Federal Reserve to borrow more money.


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