Forget “confiscation”… Your retirement accounts face two other serious risks right now
Government plans for confiscation have made their way into headlines dozens of times over the past 5 years.
Teresa Ghilarducci’s Guaranteed Retirement Accounts (GRAs) were proposed all the way back in 2007 to double down on Social Security and attempt to guarantee a 3% gain in retirement accounts. Inflation would never be higher than 3%, would it?
Hungary, Poland, Ireland, and Argentina are all going after their citizens’ retirement accounts to fill the deficits during “temporary” periods of financial disaster. On average, the stock market dropped 8% the day after these temporary measures were enacted.
That would never happen in America, we’re told.
Less than twelve months later, Obama’s Treasury team needed to dip into federal pension funds to pay bills while waiting for the debt ceiling to be raised (that’s happened twice in the past 18 months).
Democratic Congressional leaders believe that doubling down on the bankrupt Social Security system is the best path toward redistributing wealth for the next 50 years.
But they need to do something to close the unfunded liabilities.
And while the $16+ trillion sitting in retirement accounts is eerily similar to the $16+ trillion deficits, the government has been siphoning funds out of your comfortable retirement for years.
The first hidden thief will cost you over $20,000 every year if you aren’t careful. Maybe you’ve prepared for this one in your regular savings account, but your retirement account is a sitting duck.
Stuck in a market that can rise and fall with a single headline out of the Oval Office.
Most are unprepared. The Society of Actuaries recently released a report saying this thief’s is the number one risk to retirement.
During your working years, you don’t feel the pain. But the moment you find yourself on a fixed income, there’s no doubt you’ll find yourself fighting a losing battle.
This thief’s name…inflation.
It’s been subdued during the Great Recession, but as every country seeks to destroy its currency by printing new money, you can expect inflation to come fast and furious. Once the money is in the system, it eventually raises the prices of everything you need to maintain the same standard of living.
There’s only one other place that the new printed money goes, and that’s to the hidden thief #2…