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Showing posts with label retirement accounts. Show all posts
Showing posts with label retirement accounts. Show all posts

05 May 2017

Republicans Scrap Rule For Small-Business Retirement Plans 4MAI17

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HERE is another example of the American electorate getting what they asked for as a result of the 2016 Presidential election. drumpf/trump-pence promised less government, less regulation and because of voluntary ignorance, latent and blatant racism, misogyny, sexism and flat out greed here it is with plenty more to come. This program benefited the very people drumpf/trump-pence claimed they would be working for. So drumpf/trump-pence voters, how's that "make America great again" thingy working out for ya? From +NPR ....

Republicans Scrap Rule For Small-Business Retirement Plans

Senate Republicans voted Wednesday night to rescind an Obama-era policy that allows states to offer retirement savings plans to millions of workers.
Retiree and worker protection groups say the move will hurt employees at small businesses.
Many small businesses say they can't afford to set up retirement savings plans, such as 401(k) plans, for their workers. That's a big reason why so many Americans aren't saving, says Cristina Martin Firvida, the AARP's director of government affairs.
"There are 55 million Americans who have no way to save for their retirement at work," Firvida says.
She says when bigger companies automatically enroll workers in retirement plans, the vast majority of people stick with it and keep saving. They could opt out, but they don't.
And Firvida says if similar plans were in place for workers at small businesses, "they would be 15 times more likely to save for retirement if they could do that straight out of their paycheck."
Because of that, Oregon, California, Illinois and five other states have passed laws to help small businesses enroll workers in state-designed plans. That legislation was given a boost by the Obama administration policy that Congress just overturned.
Oregon's state treasurer, Tobias Read, says he's disappointed by the vote. He explains that the Obama administration created guidance for states, effectively saying, "if you do the savings plans this way, you're within federal law."
By rescinding that, Congress has now created uncertainty, he says. That could discourage more states from passing these laws.
Oregon is facing that uncertainty, too. But Read says with 1 million workers with no workplace retirement plan, his state is going to push ahead.
"We believe we are safely within the law and we want to take the chance to help working Oregonians," Read tells NPR.
One of the first small business owners to take part in the so-called Oregon Saves plan will be Saleem Noorani of Albany, Ore. He runs two wine and beer shops and he has 11 employees who will be automatically enrolled in the pilot phase of the savings plan this summer.
"They are all very excited that they are even being able to participate in the program," Noorani says. He says setting up a 401(k) plan was just too expensive for his small business. But the Oregon plan is free for him.
Noorani's workers will choose from a few investment options. These plans are similar to state-designed 529 college savings plans. The state creates the framework, but the investments are managed by a private company — in Oregon's case it's State Street Global Advisors.
"I was so glad to see Oregon come up with this plan where it makes it so easy and so simple," Noorani says. But he says he's also very confused about why Republicans in Congress have now voted to make these plans harder for states to set up.
"I'm a Republican and I can't find any logical answer for it," Noorani says. "When you see something that's such a great solution out there, why do you go around and sabotage it?"
The financial industry has been lobbying Congress to get rid of the Obama policy.
Lisa Bleier is a managing director and associate general counsel with the Securities Industry and Financial Markets Association, or SIFMA. She says, "Every state is coming up with all different ideas as to how they're going to do it." Bleier says that will create problems. SIFMA has other objections, too. And some in the industry think the government just shouldn't get involved.
Dennis Kelleher is president and CEO of the financial watchdog group Better Markets. He says there's another reason for the industry's opposition: If states set up plans that are relatively low-cost for workers, that might push the whole market in that direction and hurt financial firms' profits.
"It's all about protecting profits and that's all this fight was really about," Kelleher says.

13 November 2015

Elizabeth Warren exposes financial advisors behaving badly with retirement funds 12NOV15

Image result for images for bank financial cabal
SEN ELIZABETH WARREN D MA is after the bank-financial cabal on wall street again, fueling their absolute hatred of the woman who is not afraid to take on the 1% and the politicians their money controls. Not only is she fighting to protect and expand Social Security she is defending a Dept of Labor proposal to ban kickbacks from financial companies to retirement plan financial advisors, the people who are supposed to guide you to make the best choices for investing your retirement funds. "The new Department of Labor rule is pretty radical: It tells financial advisors that they can only provide their clients with retirement planning advice that is in their best interest". The republican / tea-bagger response? " House Republicans are trying to block it by attaching policy riders to appropriations bills. "We’re going to do everything we can to make sure that this rule is not implemented," said Oklahoma Republican Rep. Tom Cole ". Still wondering who the republicans and tea-baggers are really looking out for? This from +Daily Kos .....
Massachusetts Sen. Elizabeth Warren is fighting hard for a new financial protection rule to protect seniors from unscrupulous financial advisors, a rule that Republicans are doing their best to kill. The new Department of Labor rule is pretty radical: It tells financial advisors that they can only provide their clients with retirement planning advice that is in their best interest. Astounding stuff, huh? House Republicans are trying to block it by attaching policy riders to appropriations bills. "We’re going to do everything we can to make sure that this rule is not implemented," said Oklahoma Republican Rep. Tom Cole, because clearly Republicans are on the side of shady investment advisors.
In return, Warren is using a new report  to expose the kinds of practices—which are entirely legal!—that these financial companies engage in. One example is using kickbacks, including things like expensive vacations, gift cards, and various activities to encourage advisors to recommend inferior annuity products.
The study, called "Villas, Castles, and Vacations: How Perks and Giveaways Create Conflicts of Interest in the Annuity Industry," points out that loopholes in various rules from the Securities and Exchange Commission, the Financial Industry Regulatory Authority, state insurance departments, and other agencies allow this practice to continue. The tainted financial advice costs Americans about $17 billion every year. To get a sense of the prevalence of these perk-induced conflicts of interest, Warren's Senate office wrote to 15 leading annuity providers, asking whether they offered non-cash incentives, including vacation trips, cruises, and dinners, to annuity sales agents for promoting their financial products. Often, agents have to hit multi-million-dollar sales goals to trigger giveaways, so the letter also asked these companies about their protocols for disclosing sales incentives to annuity purchasers. Warren began the investigation in April, a few weeks after the Department of Labor proposed a rule to help curb conflicts of interest in annuity sales.
None of the companies, says the report, provided complete answers to Warren's questions, but "the responses nonetheless reveal a widespread practice of offering agents kickbacks in exchange for promoting certain annuities…and that such kickbacks are effectively concealed from customers." Thirteen of the 15 companies contacted by Warren's office admitted to offering perks either directly to sales agents or indirectly through third-party providers. Some of the top perks included a 30-day trip around the world for two, a week in Bora Bora, a trip to Monte Carlo, and a week in Rome. Beyond vacations, Warren's office heard from companies that they offered items such as iPads, golf outings, jewelry, dinners at expensive restaurants, and sports tickets.
This is in the annuities market, where retirees are going for advice on how to invest to maximize their retirement savings, and, you know, afford retirement. One would think that would be the priority of their financial advisors as well. It hasn't been, to the tune of $17 billion annually.
Republicans had probably hoped to have this fight in the background, and to try to slip it through in the massive and critical spending bills that are supposed to be working their way through Congress by the December 11 deadline, when the current funding for the government expires. Warren, however, isn't going to allow them to be so sneaky in screwing over retirees.

14 January 2011

A New Obama Conspiracy: He's Confiscating Your IRAs from MOTHER JONES 14JAN11

SO it seems some sad, narrow minded people on the right feel it is still appropriate to feed the American public lies, to deceive them, to forment hatred for and anger toward the U.S. government and Pres Obama in particular. Here is one of the latest examples being circulated by e mail......
After President Barack Obama's eloquent speech in Tucson, I wondered how the Obama haters would react. After all, it seemed that after that particular speech it would be more difficult to demonize him as a secret Muslim/Kenyan-born socialist who hates America and is plotting its demise. But it seems the Obama Hate Machine is not going to slow down—especially not if there's a buck to be made. On Thursday morning, Townhall, the conservative website that features the work of prominent rightwing commentators, sent out an email advertisement to its readers revealing the latest Obama conspiracy: he wants to steal your retirement account. Literally.
The ad is adorned with an illustration of a smiling Obama holding a small person (a white male, if you're curious) in his hand and squeezing money out of the poor fellow. The headline in big and bold letters: "Your IRA'S and 401K's ARE STILL At RISK Of Government Confiscation." The claim:
The Labor and Treasury department, along with the Obama Administration ARE MOVING FORWARD with The Nationalization-Confiscate IRA's and 401K's.
Why do they Want Your Retirement Accounts?
The-YOUR equity will be used as collateral; in an attempt to balance the Trillion Dollar U.S. Deficit.
This will be done in an effort to once again make the United States credit worthy to China and other buyers of our debt.
The proof: the Labor and Treasury Departments last September held a meeting with an agenda called "Lifetime Income Options for Retirement Plans"—and somehow this means the US government intends to transform retirement plans into government property.
Obama nationalizing everyone's IRAs and 401(K)s—it's kind of surprising that the entire media has missed that. Even Fox News. But a Department of Labor fact sheet describes what it is up to:
An ever increasing number of workers are looking to their defined contribution plans for their retirement security, but at the same time many workers are receiving their retirement benefits in lump sum distributions. This could increase their risk of not having an adequate income during retirement. Recent reports by the Government Accountability Office and the Department of Labor’s ERISA Advisory Council, a 15-member council representing employees, employers, the general public, and industry, have documented this risk.
[The Department is] exploring ways that the Agencies and the private sector can work together to ensure that workers have the tools they need to help ensure their retirement savings last a lifetime.
Sounds perfectly innocent, right? But isn't such bland rhetoric what the Obama administration would disseminate were it scheming to nationalize retirement accounts?
To understand what's behind this latest exposé of Obama misdeeds, a recipient of this email ad need only look toward the bottom and discover that it's a pitch for Goldworth Financial, a gold seller. After all, if Obama's about to snatch your retirement fund, wouldn't it be better to cash it out and use the funds to buy gold and precious coins from this firm? That is, unless the Obama administration has plans to confiscate gold. And it does.