| There is growing buzz on the internet and around | | | | Retirement Account. Just a one-time swap, trading |
| office water coolers all over the country regarding | | | | your 401(k) for a Guaranteed Retirement Account |
| the subject of the government confiscating the | | | | that will be composed of the equivalent of |
| retirement accounts of its American citizens for the | | | | government bonds that pay a 3% real return. |
| purpose of satisfying our national debts. One of my | | | | Ghilarducci went further to suggest that a $600 tax |
| clients sent me an email from a gold broker who | | | | credit should be given to those who make |
| even went as far as recommending that he liquidate | | | | contributions into these government retirement |
| all of his retirement assets and put the money into | | | | accounts. These proposals are very big ideas and |
| physical non confiscatable gold, better known as | | | | very controversial, but they in no way suggest any |
| pre-33 coins and this way his money will both | | | | seizure of American citizens retirement accounts. |
| increase in value and be safe from all government | | | | While we are on the subject of big ideas, I have one |
| confiscation. | | | | of my own for the members of congress to |
| While I do believe that gold is a good investment | | | | consider, maybe the government should give bigger |
| right now, due to the fact that the stock market is | | | | tax breaks for those who use their self directed |
| so weak and volatile, I would not suggest liquidating | | | | retirement account to purchase real estate, |
| your retirement accounts to purchase gold, I would | | | | particularly bank owned real estate that the bank has |
| simply recommend setting up self directed retirement | | | | seized through foreclosure. This would immediately |
| account, strictly for the purpose of holding physical | | | | have a positive impact on the economy. In a |
| gold (not gold stocks). This would avoid the tax | | | | recession, real estate has historically been a leading |
| penalties of withdrawal, because you are basically | | | | indicator as to the direction of the major markets. |
| rolling over your money from your existing | | | | When the real estate market falls, stocks follow, |
| retirement accounts, into what is known as a gold | | | | when real estate rises stock do the same. This |
| IRA or precious metals IRA. The IRS basically says | | | | seems to be the traditional ebb and flow of our |
| that as long as the gold is stored with a third party | | | | markets. If more Americans knew that they could |
| storage facility then you are ok to invest in gold and | | | | use their existing retirement account to buy property |
| other precious metals and hold them within your self | | | | instead of stocks, then we could be on our way to |
| directed IRA. | | | | economic recover very quickly. What better way to |
| There is no grand government scheme or plot to | | | | enlighten Americans than to offer a tax incentive for |
| seize your retirement accounts. These rumors all | | | | making such purchases. |
| stem from a committee hearing held on October 7th | | | | Currently there are 2 trillion dollars sitting in American |
| 2008, at this meeting One house member suggested | | | | retirement accounts and only 2% of them are "self |
| that it may be a good idea to create a new type of | | | | directed retirement accounts" - which simply allow |
| retirement account, called a guaranteed retirement | | | | you to use your IRA, 401k and various other |
| account (GRA), this "GRA" would perhaps allow | | | | retirement accounts to purchase real estate, |
| individuals to rollover their existing 401k's or IRA's into | | | | businesses and other no traditional investments. |
| a "GRA" and receive a secure-government | | | | American citizens could individually leverage their |
| guaranteed return of 3%. After this meeting the | | | | retirement accounts and purchase ALL the foreclosed |
| conservative John Locke Fountain, of Raleigh, N.C., | | | | real estate in our country. Everybody would win. The |
| released a publication with the following headline, | | | | banks would get these none performing assets off |
| "Dems Target Private Retirement Accounts: | | | | their books and start loaning out money again, this |
| Democratic leaders in the U.S. House discuss | | | | would stimulate the economy, the retirement account |
| confiscating 401(k)s, IRAs." The report is wrong. | | | | holders would own the best asset that the country |
| There's been no such suggestion by the government. | | | | has to offer (land) and the rents would build the |
| The House Education and Labor Committee held | | | | retirement accounts month after month. The real |
| hearings On October 7th 2008 where Teresa | | | | estate market would rebound and stocks would |
| Ghilarducci a professor at the New School for Social | | | | follow suit. It may sound nuts, but it's better than |
| Research in New York City, suggested the following: | | | | another trillion dollar bail out. The "Bail Out" days are |
| Ghilarducci, Oct. 7: I propose ... that the Congress | | | | over. Americans need to wake up and begin anew; |
| allow workers to swap out their 401k assets, | | | | think smartly and act more boldly than we have in |
| perhaps at August levels, for a Guaranteed | | | | the past. |