Introducing the Ron Paul Freedom IRA
"In plain English, the idea is for the government to take your retirement savings in return for a promise to pay you some monthly benefit in your retirement years." ~ Newt Gingrich & Peter Ferrara, "Class Warfare's Next Target: 401(k) Savings."
Gingrich and Ferrara are correct in their recent editorial on the Obama Administration proposals for new mandatory automatic IRA accounts and their goal to force existing retirement funds into government controlled annuities. But this is only the tip of the iceberg for Teresa Ghilarducci and her big government proposals to loot your IRA and retirement plan assets to fund the federal government.
Future Washington revenue needs and the growing treasury debt may require government mandates directing retirement plans to purchase government bonds. Stealth nationalization and ultimately confiscation of a majority of private retirement assets is coming to bail out failing state and municipal retirement plans which already have a deficit of at least one trillion dollars. Eventually underfunded union plans and even a bailout of the federal retirement system could take place as these groups line up to get another pound of flesh from productive Americans who worked hard and saved for their retirement years.
It Is Time For A Change!
How would you like to make a pleasant choice for a change each April 15th, the most hated day of the year? Your decision would be whether to give the first $5,000 each year you owe the IRS to the federal government or contribute it to your own "ironclad" private IRA account and receive a full tax credit for the contribution." This is the Freedom IRA proposal in a nutshell.
Today the news is filled with stories about the Washington proposals for new mandatory IRA's with the end game to nationalize, control and even force your retirement funds into government annuities. Washington needs the $15 trillion in private retirement plans to ultimately become the forced "buyer of last resort" for the treasury bond market as foreign investors and nations begin to avoid our debt like the plague it has become.
The retirement savings threat from a desperate federal government with falling revenues is real but just warning about the problem and defending the current private system is not enough. The American people must see this attempt to force full coverage with the proposed automatic IRA as the Trojan Horse to set the stage for stealth nationalization as they turn our retirement benefits into Washington's ATM Machine.
Rather than creating a mandatory clone of the bankrupt Social Security System, let's consider a simple, new retirement alternative I call the Ron Paul Freedom IRA. We hope he will introduce a bill along with other members of Congress to create this new Freedom IRA. This will generate publicity about the threat to your existing retirement funds from the Obama Administration and offer a free-market alternative to the forced, mandatory proposals from the left.
The Freedom IRA
Basically this would be an IRA with a $5,000 maximum contribution annually where instead of a tax deduction the individual contributor would received a tax credit for the entire contribution. So the ultimate question for the working taxpayer would be, "would you rather give the first $5,000 each year you owe the IRS to the government or contribute it to your own "ironclad" private IRA account?" For lower income workers who might contribute more than their annual tax bill, the tax credit could be carried forward to future years thus creating a future tax holiday for the participant.
It would operate under current IRA rules except distributions would be prohibited before the 59½ current retirement age except in the case of death or full disability. Note the plan funds would be totally protected from lawsuit, government or judicial asset seizures and other outside attacks on your retirement assets.
It would operate under and be automatically grandfathered under existing retirement regulations in the future and would be a voluntary addition to any existing plans covering the participant. Investment options would be up to the participant and investment providers but could range from conventional stocks, bonds and money market funds to CD's annuities, mining shares, approved gold and foreign currency investments.
No one questions that the American private retirement system is broken due to excessive government regulations, bureaucracy and related costs but more of the same old big government solutions with mandatory coverage and forced participation is not the answer. I've worked in the financial and retirement planning industry since the early 1970's and this is a simple, voluntarily solution to the existing system.
The Game Plan for Secure Retirement
First, contact Ron Paul's office and urge him to introduce a bill for the Freedom IRA. Then we can contact all responsible Congressman and urge them to support a real cut in taxes and solve the existing retirement system problems in a few short years with the Ron Paul Freedom IRA.
The alternative from Obama and the Democrats means we will have a forced, mandatory government program in our future with growing nationalization and confiscation threats. You can learn more about how this could this happen in the 20-page special report, "Are You Ready for the Coming Obama Retirement Trap?"
Remember the adage, "the best defense is a good offense" and the Freedom IRA is a direct attack on the coming Obama Retirement Trap. Join us and work together to safeguard and secure our existing and future retirement benefits from the desperate Washington political elites.
February 26, 2010
Copyright © 2010 by LewRockwell.com. Permission to reprint in whole or in part is gladly granted, provided full credit is given.