Is the Government Trying to Confiscate Our 401 K Plans?
"I keep getting emails warning of a government takeover of the 401 K and to invest in gold. What is your take on this? Even if we had gold, I wouldn't know how to exchange it to spend. The other reason they say gold is the Democrats want to tax you to death."
Would the politicians like to take over your 401 K plan? Of course they would. After all, why wouldn’t they want to take advantage of the trillions of dollars that are invested in 401 k plans. Realistically this is far from happening.
You have to understand the history of this rumor. It all started when Dr. Teresa Ghilarducci went to talk to few members of Congress in October 2008 during the financial crisis. Her idea was to create a social security two type plan. From there the internet went crazy and suggested that she was proposing that politicians take over 401 K plans. The rumor mill started.
In fact, I interviewed her on my program and asked her the question - was that the intention? Absolutely not she said. Don’t get me wrong. She is socialist through and through and believes that the Government should take a more active role in our lives. However, she is not that radical.
So, why does this notion keep popping up? Fear sells subscriptions to letters and sells books. The whole idea is to scare you then show the solution. In other words, you need this book or newsletter to survive.
You are right. It is pretty far fetched to suggest that someone is going to buy a loaf of bread with gold.
Bottom line: don’t believe the sensationalism. Fear sells products of all kinds... and yes the Democrats want to tax us to death. If they get elected to the White House with the majority in both houses, look out below!