[quote=edna_mode]So diversify your regulatory risk…half in traditional, half in “Roth”. If your work only allows traditional 401ks, contribute to Roth IRAs and rollover to Roth IRAs whenever you change employers.
I’m of the opinion that Roth IRAs are actually at greater risk of demagogery: they were a vehicle for people to pay taxes upfront at what they bet to be lower rates than what they would get at retirement. So then people will be complaining that wasn’t “fair” somehow, and then they’ll be taxed on the way out too.
Not to say they wouldn’t do this with traditional 401ks/IRAs too, but here I’m hoping for protection by a the increased likelihood that more people who vote have savings of this type, and would thus be more likely to vote to protect them from further erosion. But to check this premise, I’d have to know which class more assets have been parked in. Any ideas how to research this information?[/quote]
Hahaha the upcoming moves on 401Ks/IRAs will be sold as a “rescue” package. First, 401Ks/IRAs will be made to seem “in trouble” after a big stock crash. There will be a 60 minutes piece, there will be jokes on SNL and The Daily Show about how we all now have “201Ks”, and of course there will be lots of articles in the mainstream press about “the retirement crisis”. Help, government, please save us! And in they will step to save you by mandating that some portion of your 401Ks/IRAs must go into treasuries, that everyone must have a 401K/IRA, and that the minimum age for withdrawal must increase. It will start small at first and increase each year, this will prevent anyone from howling too loudly. And if people start getting uppity about it, the police state they’ve spent the last 25 years building will take care of that in a jiffy.
As for people voting out their senators and representatives because of this, that’s simply not going to happen. When it comes election time they will just put a scary man in a turban and a beard on the TV or talk about gay marriage or abortion and you will all vote the way they want you to. The 1% of you that actually understand what’s happening are not enough to make a difference. Besides, your senators and representatives may not even be involved because now we have a SUPERCONGRESS! Kiss those 401Ks/IRAs goodbye. They are going to become just like your social security and medicare. Pretty soon SS/MDCR benefits are going to be cut, but they’re sure as hell not going to cut SS/MDCR contributions, in fact they are likely to increase. 401K/IRA will become another mandatory retirement program in which your contributions always increase but your withdrawals are managed and decrease over time.
