From Birch Gold Group
Given his campaign’s emphasis on overhauling the tax system, should Joe Biden be elected, retirement accounts could take a major hit.
According to a Fox Business article, Biden wants to “convert the current deductibility of traditional retirement contributions into matching refundable credits for 401(k)s, IRAs and others… with the intent of boosting saving among low-income earners.”
Continue reading “Biden Election Could Stifle 401(k) Tax Benefit for Millions”
From Birch Gold Group
Based on a letter issued by the U.S. Department of Labor, it appears that the door is now open for 401(k) plan administrators to add higher-risk private equity investments.
U.S. Secretary of Labor Eugene Scalia is unusually optimistic, saying in the letter:
This Information Letter will help Americans saving for retirement gain access to alternative investments that often provide strong returns… The Letter helps level the playing field for ordinary investors and is another step by the Department to ensure that ordinary people investing for retirement have the opportunities they need for a secure retirement.
This optimism may be because private equity investment firms have been eying 401(k) plans for some time. A recent Forbes piece describes this DOL letter as a “win” for them, as 401(k)s hold nearly $9 trillion in assets. However, the piece warns:
Continue reading “Washington Just Threw 401(k) Owners Under the Bus”
“Do not underestimate the ‘power of underestimation’. They can’t stop you, if they don’t see you coming.” ― Izey Victoria Odiase
During the summer of 2008 I was writing articles a few times per week predicting an economic catastrophe and a banking crisis. When the biggest financial crisis since the Great Depression swept across the world, resulting in double digit unemployment, a 50% stock market crash in a matter of months, millions of home foreclosures, and the virtual insolvency of the criminal Wall Street banks, my predictions were vindicated. I was pretty smug and sure the start of this Fourth Turning would follow the path of the last Crisis, with a Greater Depression, economic disaster and war.
In the summer of 2008, the national debt stood at $9.4 trillion, which amounted to 65% of GDP. Total credit market debt peaked at $54 trillion. Consumer debt peaked at $2.7 trillion. Mortgage debt crested at $14.8 trillion. The Federal Reserve balance sheet had been static at or below $900 billion for years.
Guest Post by Simon Black
Earlier this year the US government reported that Social Security’s long-term, unfunded liability now exceeds $50 TRILLION.
Moreover, they forecast that the Social Security and Medicare trust funds will run out of money in 2034.
This is the government’s own calculation.
(And the government’s math is based on rosy assumptions that there will be no more wars, recessions, financial crises, major disasters, etc. which could make the problem even worse.)
Continue reading “There are some enormous benefits in setting up a Solo 401(k)”
In June 2018, the White House let a piece of legislation known as the “fiduciary rule” drop, according to Bloomberg:
The “fiduciary rule” is officially dead. The Labor Department rule, conceived by the Obama administration, was meant to ensure that advisers put their clients’ financial interests ahead of their own when recommending retirement investments.
The idea behind this rule was to prevent financial advisors from recommending investments they were incentivized to promote. It would instead encourage them to suggest investment opportunities in the best interests of their clients.
Continue reading “Congress to Make 401(k)’s Riskier For Your Retirement Savings”