401 K: Suckers game

Here is a major suggestion from me. It is for free, so consider these two factors.

Robert T. Kiyosaki, writer of  best-seller Rich Dad Poor Dad, a sensible economic self-help book, is pounding home the point that the introduction of the 401K was a terrific trap for people because no one has bothered to teach people anything about investment. They are depositors, not investors. They do what they are told, as they move along the corridor to the slaughter house.

Another bright plan afoot, if the Socialists retain power, is to confiscate your 401K and replace it with a national pension fund. Here is an inflammatory guy's radio broadcast, who, curiously, seems right most of the time and has sources.

 What's that you say?  My concern is just a crazy right wing thing. Could be, so just keep your plan.

The new pension fund will be run by the Social Security Administration, the one that used to have a trust fund.

You are a giant target for the amorphous Wall Street and the gluttonous government.  They (Goldman Sachs being the government) keep you a target by offering you tax breaks and threatening tax penalties, even while your 401K drops in value every day.  Scared of these penalties? Why? Your 401 K went down last year, what, 50%, then its value decreased 17%  in buying power this year. It is likely, in the end, the dollar will vanish, Max Keiser thinks it will be officially devalued by 50%.I don't think you should be afraid of a penalty.

If you are really smart and getting 4.5%, like me, on bank money, you are only LOSING 14.5%.  Great return. So, daily, I watch for silver bargains on Ebay.

The reason that oil goes up while supplies are fine has nothing to do with global warming, cooling, tickling, or hrumphing.  It has nothing to do with evil BIG oil and all those FAT old-lady shareholders. In fact the macro-cost is NOT GOING UP.  Your U.S. Dollar is going down.  Until you understand this, you are, as once was said, a chump.

Now, here is the killer: there is nothing stopping the government from stealing your retirement account; after all, you will be getting your single-stealer medical plan and a nation pension plan. Your 401K is a massive target and the government is more than a massive, hungry beast.

In the past, in anticipation of all this fancy footwork by citizens attempting to preserve their property, a right preserved in the Constitution, the feds made it a crime to own gold. They didn't want Americans to turn in their paper and get the promised gold in return. Of course, other nations could.

Trust me, the government will do anything to get your money.  This government will let you die to get it.

From the Economic Populist:  

For example, has anyone heard the news media use the term "crash" in regards to what happened to the stock market in late 2008? I haven't. Nor have I heard the term "financial panic". Yet that is exactly what happened to the stock market, but the media doesn't tell you that because it wants you to keep sending your money to Wall Street in the form of your 401k.

Just look at the firms that the taxpayer has bailed out. They've set up off-shore operations in order to avoid paying taxes. Sweet deal, huh?

The point of all this, is get your money back into your basement. The 401K is costing you money and could cost you it all.   

Later, more on what to do.