Yes, I know 401k accounts took it on the chin in the past year. But they are beginning to recover a bit. And that money is yours, right? You worked for it, you saved it, your employer made some matching amounts and with the magic of compound interest, you planned to have that money when you retired. Controlled by you. Your money.
Maybe.
13. Should some form of lifetime income distribution option be required for defined contribution plans (in addition to money purchase pension plans)? If so, should that option be the default distribution option, and should it apply to the entire account balance? To what extent would such a requirement encourage or discourage plan sponsorship?
They are soliciting public input. It would be a really good idea to tell them where to input this plan. If you do not act, they will decide for you how you may use your money.
Hope’s that hope for change coming along? Maybe you misheard: was it “hope for chains?”
Get these maniacs out in November.
I’d copy your Senators and Reps on any input as well (If you REALLY want to make an impression, hand deliver it to their local office).
Annuitizing some of one’s retirement savings isn’t necessarily a bad idea, but at YOUR option not the government’s. There are plenty of means to do this privately. Of course, most of us already have a retirement plan annuitized in Treasuries…it’s called Social Security. How’s that going to work out?
Karl Denninger at Marketticker has discussed this proposal before. It’s either (1) a way to FORCE retirement investments into Treasuries (once the auctions start to fail…Hello Japan!!) or, (2) another way to feed the pigmen on Wall Street (so they’ll have more graf…err, campaign contributions to spread around).
If they take my IRA, I take their necks.