Categories



TheLibertyMill




The Phaserl








AvatarProducts

RED ALERT: NOW THEY’RE COMING FOR OUR RETIREMENT MONEY

RELATED: Democrat Leaders: Confiscating 401K’s & IRA’s…?

by SGT, SGT Report.com:

I received a document from Paychex today which is the administrator of one of my 401K accounts… and they have announced that they are going to move all cash in NON-government ‘Federated CASH Obligation’ money market accounts to ‘Federated Government Obligations‘.

Since my 401K money is invested in three different precious metals funds this announcement does not affect me, however it will impact many other unsuspecting would-be retirees who falsely believe that their money is “safe” and “liquid” in a money market account. This is the slippery slope into government forcing account holders to invest in government debt (Treasuries), and it’s exactly what we’ve been warning about. As for me, I’m going to roll that particular account over and away from the control of Paychex.

Dave Kranzler from Investment Research Dynamics joins me to dissect the document and to shed some light on the recent huge moves in silver.

Help us spread the ANTIDOTE to corporate propaganda.

Please follow SGT Report on Twitter & help share the message.

43 comments to RED ALERT: NOW THEY’RE COMING FOR OUR RETIREMENT MONEY

  • KRELL427

    Silver Chart of Possible 30-Year Cup And Handle Breakout Targeting $690! http://kingworldnews.com/is-the-price-of-silver-really-headed-to-a-jaw-dropping-690/

    • chuck

      That’s good to read Krell, but If a will be able to buy a weeks’ worth of groceries for 2 with a ’53 Franklin, or a new set of plugs and wires for my truck with a ’64 quarter then we’ll know that means something. That’s what I’m hoping for.

    • mike

      Man this is fun ..Silver 690$ BTC 1 Million OMG!!!! Totally true here a link fellas so no denying the 1 million and you can believe it…Totally trustworthy people like the silver gurus..
      http://www.newsbtc.com/2015/12/10/will-bitcoin-price-reach-1-million-us-dollars/

      Keep buying BTC!

      On another note..Why in the name of God would the Gubberment have to steal IRAs/401ks when they can just print the money..Come on, that doesn’t make a lick of sense at all.

      • Ed_B

        “On another note..Why in the name of God would the Gubberment have to steal IRAs/401ks when they can just print the money..Come on, that doesn’t make a lick of sense at all.”

        Probably for the very same reason that they tax us. Couldn’t they “just print the money” for that too? Sure they could… but they don’t and for GOOD reason. Over-printing of fiat currency is one of the best ways to destroy a currency. They know this and try not to kill the currency any faster than their other plans demand it. Bottom line: both taxation and grabbing other people’s money are methods for enhanced control of people, rather than anything that is done for economic / financial reasons.

        • Craig Escaped Detroit

          @Ed, perfect answer about printing the tax payments for us.

        • mike

          Not exactly right… The Gubberment or Fed can pay banks interest not to give out loans and hoard cash like they are currently doing and avoiding inflation. The gubberment can just take on new spending as deficit spending which is even better and bullish for the dollar. The more sovereign debt the better for the dollar. The dollar is the perfect construct and it was pure genius basing it on debt. It is not only backed by the asset purchased by creating new debt but by everything under the sun it can purchase including PMs. If there is a default that is debt destruction and seriously bullish for the dollar as in major deflation..Then more printing to counter deflation.
          As far as hyperinflation that is impossible as long as there is deficit spending and huge sovereign debt that could be defaulted on. I think the answer you trying to tell me is not hyperinflation (that is ridiculous and downright absurd) but “control” would make more sense as to why the gubberment would tax you or take your IRA. So you should really start using BTC since it completely circumvents bankers and middlemen and especially gubberments. It is truly finite and can not be duplicated at will like paper dollars and PMs. It is the true stake in the heard of the vampire squid..

          • Eric

            Bitcoin is a worthless pyramid scheme for suckers like mike.

            “The gubberment can just take on new spending as deficit spending which is even better and bullish for the dollar. The more sovereign debt the better for the dollar.”

              • Eric

                I sure am glad I didn’t fall for a worthless get rich quick pyramid scheme like mike did. He seems to be confused on what the “dollar” was based on.

                A Dollar or Unit $1 was originally defined as 371 4/16 grain (24.1 g) pure or 416 grain (27.0 g) standard silver.

                He also doesn’t understand that central bankers will not allow a debt default.

                Basically he doesn’t understand much of anything. He’s like a dull butter knife trying to cut through a rib roast.

  • Allender

    “Since my 401K money is invested in three different precious metals funds this announcement does not affect me”….

    “Precious metals funds”?

    Got physical metal in you possession, or have you got one of hundreds of claims per ounce in the, “…precious metals funds….”

    Paper, or, metal?

    There is a mortal difference.

    • SGT

      Hey Allender, Just to be crystal clear, I have many tens of thousands invested in PHYSICAL gold and silver, this is just a puny 5-year account. But it’s invested in the correct sector, precious metals, albeit (well managed) paper funds.

      • Eric

        Hey Sean,

        Just to let you know. I lost quite a bit being invested in Euro Pac. Not because they were invested in bad assets. But because I couldn’t control it when I wanted to. In the time it takes to make a trade, Gold could rocket up 500 bucks.

        Having direct control of ALL your money at ALL times is ideal. Nobody cares more about it than you do.

        • willygroper

          sprott pm trusts may be paper, but redeemable for phys.

          just a PSA, but ANYTHING owned in the stock market, you are a beneficiary, not the owner.

          if you want a physical stock certificate, you can get it…wait for it…

          you must pay the DTCC $500 per certificate for physical possession. And DTCC is owned by whom???

          FRB parasites.

      • Allender

        Can anything be crystal-clearer “Counter-party risk”?

        What is about to happen will make counter-party risk an a wealth-buster episode of the “Twilight Zone” blended with the “Outer Limits” crawling in under cover of Satan with his “illumination” turned off.

        Sean, do you think even the “Most Secure–cross our cold, cold hearts and hope to…cry!” is not quite below the “abscess”…ahem, absence of any counter-party risk whatsoever?

        How about an interview?

      • Ed_B

        @Sean

        Many who have retirement plans at work have exactly TWO choices in terms of investing their retirement money in PMs: a paper fund and NONE. This is what I had back in my working day. Since retiring and rolling into an IRA, many more options became available. When one has to satisfy the rules and regs of both their employer and the US Gov, options can be few and far between. So, seen in this light, good job to those who invest some of their retirement stash somewhere in the PM arena.

        As to physical, a great many of us on here buy all the phyzz we can on our own and outside of any retirement plan(s) we may have.

  • KRELL427

    I find it hard to beleive that whatever your 401k is invested in is safe, it will be fair game for nationalizeation, or confiscation.

    • Ed_B

      Sure… but only of TPTB want to see uncontrollable RAGE expressed by a LARGE part of the US population. The American psyche hinges on the concept of “fairness”, so anything that messes with the generally accepted view of what is and is not fair. Taking that which is not yours, is definitely crossing the line well into UNFAIR. It will not be tolerated, IMO. If something like this flys, then what next? Give us your virgin daughters? And after that? There HAS to be a line somewhere that, if crossed, all hell breaks loose. This could well be it.

  • Eric

    This is getting rigawddamndiculous!

  • willygroper

    schwab’s doing it too.

  • I think this should be a wake up call to consider moving your 401(k) to a different plan administrator. I have had 401(k)s with former employers and ended up moving them when I was no longer with those companies. A 401(k) can be easily moved into a rollover IRA. I chose Vanguard because of its low cost mutual funds but I recognize there could be other considerations that might influence choosing a different plan administrator. Besides these investment restrictions, fees can also consume a large portion of retirement savings.

  • Scott

    I got a letter from Vanguard about this taking place as of October 1st

    • Ed_B

      @Scott

      Yep, me too. But according to the letter I got, they have standardized brokerage account owners on the “federal” money market fund for trade settlement purposes only. They are presenting this as a benefit for clients but I am wondering just WHO benefits from this.

      We can still keep whatever other money funds they offer and that we choose to hold the cash portion of our portfolio but that will require additional transfers into the federal money fund when buying investments. Still, this is disconcerting because of the pattern that it could easily fit into. If they do this in incremental steps, we will all know that they are up to no good and that will be the time to take the money out and pursue other options.

      I would have done this already but for the HUGE tax bill that this would generate. Better to pursue a program of incremental withdrawals so as to manage and minimize the tax bite, IMO. So far, so good, and over $60k has already been removed and used to buy PMs without paying a large amount in extra taxes. Typically, this is done in Nov-Dec and again in Jan-Feb so that the entire amount withdrawn does not occur in the same tax year. This might not be the greatest approach but it looks better to me than most other withdrawal plans I’ve seen.

  • Steve_D

    George being proven right once again………

    https://youtu.be/acLW1vFO-2Q

  • Craig Escaped Detroit

    I wish I had a 401k instead of a “defined benefit plan” because I’d be able to “cash it out” (pay the penalties) and be able to divert all the remaining money into physical PM’s.

    But I’m stuck with my monthly pension payments (which just got reduced by exactly the same amount that Social Security pays (a reduction of $1450).

    So this pension plan actually forces all the recipients to start collecting Social Security at age 62. (That’s how pretty much all the “UAW” factory pensions are formulated.)

    It would have been SWEET if my pension was not reduced when I became eligible for SSI.

    But neither one of those things matters because ALL the payment systems (and ALL the PAPER monies) will be GONE.

    Governments (maybe not in all places) will be confiscating the metal mines. Shares will be transferred to government hands. The only thing really left in OUR hands, will be
    our PM’s and our Gardens.

    I would NOT be surprised if government troops visit every home where somebody holds a CCW permit to confiscate all the guns & ammo.

    • Ed_B

      @Craig

      “But neither one of those things matters because ALL the payment systems (and ALL the PAPER monies) will be GONE.”

      Sure but the question is WHEN? Old farts like us are likely to be GONE well before the 401K plans are, so not a problem… for us, anyway.

      “Governments (maybe not in all places) will be confiscating the metal mines. Shares will be transferred to government hands. The only thing really left in OUR hands, will be
      our PM’s and our Gardens.”

      Maybe. But then all this could take years and years to play out. It would be a real shame to make a quick mistake in order to avoid a penalty that won’t arrive within our life-times. It *might* but there is no guarantee of it. What IS guaranteed when people “cash out” their 401Ks and IRAs is a large tax bite that can be up to 55-60% of their retirement savings, once their state of residence chimes in for “their share”.

      “I would NOT be surprised if government troops visit every home where somebody holds a CCW permit to confiscate all the guns & ammo.”

      And I would not be surprised if all they end up getting are some of the bullets from those guns. Like PMs, weps and ammo CAN be put on deposit in the Bank of Mother Earth and withdrawn at need. 🙂

  • Craig Escaped Detroit

    While I do sometimes have a tendency to over-react to some “signs & situations”, it is because for some reason, I prefer to err on the side of extra caution rather than try to play the “waiting game” for tax benefits etc.

    I see this new move by the 401k “Administrators” as a government pushed agenda to herd the Sheeple into the SLAUGHTER PENS as one of the final steps before getting slaughtered for the benefit of the banks, Wall street, etc.

    Yes, I agree that it could take YEARS before things go that far, but I’m nervous that it might happen in less than 12 months.

    Wondering OUT LOUD here, but is it possible to put up the contents of a 401k plan as collateral for a loan?

    Would it be possible to access your money in this way, without taking the tax hit, and then using your “loan” money to buy PM’s, pay off debt, etc, and then IF the slaughter event happens, just let the banks get stuck with slaughtered collateral and you just walk away with a smile?

    Losing 50% to the tax man is horrible, but losing 80-100% to the slaughter house is much worse.

    Avoiding the tax penalties by stretching things out for another 5-15 years, sure sounds nice, but how nice will it be, if the money you’ve saved from the “tax man” is devalued by so much that it makes you wish you had taken it out years earlier and paid the damn tax?

    How clever is it, to protect yourself from losing $100k in tax penalties, if those “future dollars” won’t even fill up the gas tank?

    We are all sure that the PM’s will skyrocket and the FIAT money will crash. So I don’t see ANY benefits to protecting future fiat FRN’s from the tax man if the inflation/hyperinflation boogie man gets it first.

    I’d be very upset to protect $100k from the tax man, only to find out it will only buy 100 or 200 ounces of silver, when I COULD have taken it out early, paid all the penalties and bought 5000-20,000 ounces of silver.

    A bird in the hand is worth 100 birds in hopes and dreams.

    The tax penalties are PART of the CORRALLING PROCESS to keep us going into the slaughter houses because they WHIP us and beat us if we choose to escape before getting killed.

    I would look at the tax penalties as the cost of survival, and using what remains to buy more PM’s is the reward that would support us in our later years. I don’t think ANY amount of FIAT FRN’s will support us when we really need it.

    • Ed_B

      @Craig

      “Wondering OUT LOUD here, but is it possible to put up the contents of a 401k plan as collateral for a loan?”

      Understood. Most of us on here do a fair bit of that to stir the conversation a bit and get extra input. 🙂

      “Would it be possible to access your money in this way, without taking the tax hit, and then using your “loan” money to buy PM’s, pay off debt, etc, and then IF the slaughter event happens, just let the banks get stuck with slaughtered collateral and you just walk away with a smile?”

      AFAIK, that is not possible. What IS possible, though, is most 401K plans allow plan participants to take a loan from their plan and then repay the loan out of their pay over time. Of course, this won’t work for a retiree because they are not getting any more “pay” from which to deduct the regular payments. Even so, this could be an option for someone who is still working and contributing to their 401K plan.

  • Ed_B

    I’ve been doing some on-line research on this issue and have discovered a few things. First, it is the SEC that is behind this and they say that they are doing it because they want to stabilize the Money Market Account business that had a lot of turbulence in 2008. Practically all of this was caused by institutions pulling large sums of money from the MMA funds, which makes life difficult for the MMA fund managers. They own a lot of short-term paper that they then have to sell to meet the distributions demanded by shareholders. They did note that this is almost completely due to institutions and not to individuals. In spite of this, they are putting new rules into effect, some of which also affect individuals even though we are not the cause of the problem! This is typical US Gov BS because it uses a shotgun approach to solving a problem by including millions of people who are not causing the problem. This is similar to requiring everyone to get chemo-therapy because SOME people need it. Yes, it really is just that dumb.

    Second, this only affects the MMAs used as settlement / sweep accounts, so when one buys more shares or sells them, the money from the sale goes into or comes from this MMA. There is no requirement to keep any money in this account, although personal inertia will result in billions of dollars being placed in these “federal” MMAs. The federal MMAs will have a fixed share price of $1 each while the non-federal MMAs will be allowed to float based on the NAV of the paper assets they hold. This is a slick way of saying that these accounts, unlike the federal MMAs, can “break the buck”. While MMAs that are allowed to float and break the buck (become worth less than $1 per share) could do so by SEC rules, shareholders will revolt against this in LARGE numbers, possible also cleaning out ALL of their money from such a brokerage that does this. No brokerage that wants to stay in business will allow this to happen. The few times when this has happened in the past, the brokerages funded the MMA with their own capital so that the share value did not close below $1. They did this because they understood what would happen if they did not. This is still true today, regardless of the new SEC MMA rules, so one has to wonder exactly what is being done here and why. The case for their stated reasons seems rather weak to me.

    The 3rd and final issue in this is that certain MMAs, not the federal ones, will be allowed to delay withdrawals for up to 10 days in any given quarter. This is to give the MMA fund managers the time to sell their short-term investments in a way that works better for the MMA fund and the shareholders. I can see how panic selling from MMAs should be avoided but since it is the institutions that did this back in 2008 and not individuals, this would seem to be unnecessary for individual investors. So, why do it? Perhaps because this is yet another kind of incrementalism being applied to our finances and that more changes will come over time that would not be acceptable all at once? If so, then this would not be the 1st time this technique has been used. The boiling frogs analogy comes to mind.

    As a person of reasonable common sense, I do not see the need for these rules being applied to individual investors. If new rules were needed to control massive MMA fund outflows by large financial entities, then this should be applied strictly to those who have the ability to cause it… which is to say the financial institutions.

    It is inherent in the value of a MMA that one can withdraw money as needed. If the MMA becomes gated such that investors have to wait up to 10 days before getting their money, many opportunities to invest quickly will be lost and for virtually no gain in the MMA stability that the SEC and no doubt the MMA fund managers desire. In short, this is an answer in search of a question that isn’t being asked.

  • Craig Escaped Detroit

    He trusted that the banksters and the government would play nice and not screw him over before he got the chance to take his money out.

    https://memegenerator.net/instance/69247563

  • Craig Escaped Detroit

    Here’s one for Jim Willie’s Family.

    https://memegenerator.net/instance/69247645

  • Craig Escaped Detroit

    Hyperinflation is not strictly a bookkeeping/mathematical situation, the ultimate “hyper” of it, is when the main population gets into an emotional PANIC because they psychologically understand that the UNBACKED FIAT really is UNBACKED.

    The people start to abandon the FIAT at increasing speed (due to their EMOTIONAL PANIC) and HYPERINFLATION spreads like wild fire among the populace.

    Of course, it begins with the government printing paper money like crazy and PRIMING THE PUMP.

    In today’s world, all the pumps have been primed. The money is being printed at WARP SPEED, and now we are just waiting for all the sheeple to wake up and panic.

    They’ll be dumping FIAT to buy FOOD, Gold, Silver, and weapons. The stores will be empty very quickly, PM’s will skyrocket, etc.

    But the government will NOT have printed another 10,000% of paper money, but the SHEEPLE will be reacting 10,000% more panic. The velocity at which “The People” dump their fiat, will be a self-feeding circle-jerk.

    Stack Early, beat the rush. It’s gonna be like Christmas in July, but more like Walmart on Black Friday Super Sale at opening time. Ouch.

  • Craig Escaped Detroit

    Hyperinflation becomes the ultimate “Self Licking Ice cream cone”.

    (I’ve always laughed at that marvelous phrase.)

  • rich

    New York Times’ Gretchen Morgenson: Private Equity Transparency Bills, Including California Treasurer Chiang’s AB 2833 “Hit a Wall”

    Over the weekend, Gretchen Morgenson of the New York Times confirmed these readings of the sorry state of AB 2833 in a broader article on stymied private equity reform efforts. From her column:

    It began last year as a promising push by a few states to require private equity firms that invest on behalf of public pension funds and university endowments to be more forthcoming. But the effort has hit a wall as bills in California and Kentucky intended to shed light on fees and practices at these powerful firms have been either killed or watered down.

    One of the bills proposed in California would have required only modest disclosures: the publication of a handful of pages from confidential limited partnership agreements. It was shot down.

    Even worse, another private equity transparency bill in the state was recently amended to eliminate disclosures about related-party transactions between private equity firms and the portfolio companies they oversee. Fees paid by portfolio companies to private equity funds ultimately come out of the pockets of fund investors, so more sunlight in this area would have been beneficial.

    Needless to say, the bill Morgeenson mentions in her third paragraph is Chiang’s legislation, AB 2833.

    Mind you, it would be one thing if Chiang had made a serious effort on behalf of a strong version of the bill, particularly since he has put AB 2833 first on his list of “must pass” bills for this year. But as we’ve indicated, Chiang’s actions make clear that he is far less interested in having the pension funds to which he has a fiduciary duty understand the true costs of investing in private equity than making enough of a show so as to get good headlines from the not-finance-savvy in-state media.

    Chiang didn’t even begin to put up a serious fight for a strong version of his bill. Worse, as we’ll discuss in more detail, hopefully this week, his office actively misled the CalPERS board and failed to challenge false information provided by staff. And mind you, this is a classic case of the dog that didn’t bark. There was no opposition by the private equity industry. They knew they could rely on their stooges at the public pension funds to do their dirty work, and that Chiang lacked the know-how and the interest to push back.
    Not only did Chiang not fight, he didn’t even go through the pro forma efforts to show he cared about the bill.
    http://www.nakedcapitalism.com/2016/07/new-york-times-gretchen-morgenson-private-equity-transparency-bills-including-california-treasurer-chiangs-ab-2833-hit-a-wall.html

    Pensioners are so screwed b/c their fiduciaries have been compromised for a long time.

Leave a Reply

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>