Retirement Savings Accounts Draw U.S. Consumer Bureau Attention

[Trajan]

I know I know, this aint Argentina, just keeping hope alive




Retirement Savings Accounts Draw U.S. Consumer Bureau Attention

Jan 2013

The U.S. Consumer Financial Protection Bureau is weighing whether it should take on a role in helping Americans manage the $19.4 trillion they have put into retirement savings, a move that would be the agency’s first foray into consumer investments.

“That’s one of the things we’ve been exploring and are interested in in terms of whether and what authority we have,” bureau director Richard Cordray said in an interview. He didn’t provide additional details.

The bureau’s core concern is that many Americans, notably those from the retiring Baby Boom generation, may fall prey to financial scams, according to three people briefed on the CFPB’s deliberations who asked not to be named because the matter is still under discussion.

The retirement savings business in the U.S. is dominated by a group of companies that handle record-keeping and management of investments in tax-advantaged vehicles like 401(k) plans and individual retirement accounts. The group includes Fidelity Investments, JPMorgan Chase & Co. (JPM), Charles Schwab Corp. (SCHW) and T. Rowe Price Group Inc. (TROW) Americans held $19.4 trillion in retirement assets as of Sept. 30, 2012, according to the Investment Company Institute, an industry association; about $3.5 trillion of that was in 401(k) plans.

Retirement Savings Accounts Draw U.S. Consumer Bureau Attention - Bloomberg

 

[Truthmatters]

yes they will try to get that money just like they went after home equity in the last mess

 

[Tambellini]

I hear a few different things

1) They want to do away with 401ks and IRAs (you can keep what you have though) and make you put 5 percent into a govt retirement account.

2) They want to take your 401k to pay down debt

 

[Zander]

Just what we need - more government intrusion!!!!

 

[RightNorLeft]

Many people that are ready and of age to retire cant because their 401ks lost a bundle. Retirement Accts are NOT pensions, which are guaranteed and thats why the big guys hate pensions, they dont get to play, manipulate and sometimes steal it, like Worldcom employees and Enron, where thousands of employees lost their 401ks and many that were already retired lost their income. Thats just two cases theres more.
The assualt on pensions is all about the rich and big banks getting full control over billions and billions more....

 

[mudwhistle]

Social Security and Medicare are Congress's Ponzi schemes.

They blown all of that money and now they want to go after our retirement accounts.

Sounds like mob activity. Only difference is they can do it legally.

 

[BillyV]

I know I know, this aint Argentina, just keeping hope alive




Retirement Savings Accounts Draw U.S. Consumer Bureau Attention

Jan 2013

The U.S. Consumer Financial Protection Bureau is weighing whether it should take on a role in helping Americans manage the $19.4 trillion they have put into retirement savings, a move that would be the agency’s first foray into consumer investments.

“That’s one of the things we’ve been exploring and are interested in in terms of whether and what authority we have,” bureau director Richard Cordray said in an interview. He didn’t provide additional details.

The bureau’s core concern is that many Americans, notably those from the retiring Baby Boom generation, may fall prey to financial scams, according to three people briefed on the CFPB’s deliberations who asked not to be named because the matter is still under discussion.

The retirement savings business in the U.S. is dominated by a group of companies that handle record-keeping and management of investments in tax-advantaged vehicles like 401(k) plans and individual retirement accounts. The group includes Fidelity Investments, JPMorgan Chase & Co. (JPM), Charles Schwab Corp. (SCHW) and T. Rowe Price Group Inc. (TROW) Americans held $19.4 trillion in retirement assets as of Sept. 30, 2012, according to the Investment Company Institute, an industry association; about $3.5 trillion of that was in 401(k) plans.

Retirement Savings Accounts Draw U.S. Consumer Bureau Attention - Bloomberg

They are looking at the potential for fraud at the "rollover moment"; when someone retires and rolls his entire 401K out of his employer's plan and into a private IRA or elsewhere. It would actually not be a horrible thing if they were simply looking at putting some transparency rules for investment advisors and banks and information or advice for those "rolling" their assets, but the conspiracy theorist in me wonders if the "solution" to these oldsters being defrauded out of their life savings wouldn't be a required rollover into US Treasuries or perhaps a new government "retirement bond", hence providing the government with another trillion dollars a year to play with.

 

[Truthmatters]

every time we deregulate out of right wing insistance the people get taken for a ride.


Regulation is not evil.

stealing peoples money with no recourse for the people is evil

 

[Dont Taz Me Bro]

Many people that are ready and of age to retire cant because their 401ks lost a bundle. Retirement Accts are NOT pensions, which are guaranteed and thats why the big guys hate pensions, they dont get to play, manipulate and sometimes steal it, like Worldcom employees and Enron, where thousands of employees lost their 401ks and many that were already retired lost their income. Thats just two cases theres more.
The assualt on pensions is all about the rich and big banks getting full control over billions and billions more....

No, the "assault" on pensions is what is keeping jobs in this country. As hard as it is for you to believe, this isn't 1955 anymore. We live in a country that is part of a global economy now and we have trouble as it is competing with nations where the cost of doing business is drastically less let alone having the burden of paying pensions to someone who is retired for thirty years.

 

[Zander]

A fool and his money are soon parted.....anyone who trusts the government to "take care of them" is a fool. Government regulations that are designed to "protect" fools invariably create more fools and lots more fraud.

State licensing laws are a perfect analogy. If you are "licensed" by the state to perform some service, lazy consumers do not bother to check your references, why would they? You are "licensed".....

 

[Rozman]

I hear a few different things

1) They want to do away with 401ks and IRAs (you can keep what you have though) and make you put 5 percent into a govt retirement account.

2) They want to take your 401k to pay down debt

Some government agency will eventually take the IRA accounts and the 401 K plans...
Elizabeth Warren will again make her argument that we didn't earn these retirement accounts on our own.Government is the sole reason we have been able to put this money away over the years and they want it back.

They will dole out a pittance to us come the day we retire.
The democrats will love this idea.

 

[Rozman]

I said in another post that the government will take over the retirement accounts because they are looking out for us.

 

[American_Jihad]

The U.S. Consumer Financial Protection Bureau is weighing whether it should take on a role in helping Americans manage the $19.4 trillion they have put into retirement savings

ROLMAO​

 

[Joe Steel]

I hear a few different things

1) They want to do away with 401ks and IRAs (you can keep what you have though) and make you put 5 percent into a govt retirement account.

I don't know if it's true but it would be an excellent idea. The vast, vast majority of workers are not qualified to handle their retirement savings.

 

[martybegan]

I hear a few different things

1) They want to do away with 401ks and IRAs (you can keep what you have though) and make you put 5 percent into a govt retirement account.

I don't know if it's true but it would be an excellent idea. The vast, vast majority of workers are not qualified to handle their retirement savings.

And the idiots at CalPERS who predict a 8% return and only get 3% are, right?


The only thing keeping public pensions alfoat is tax money.

 

[martybegan]

Many people that are ready and of age to retire cant because their 401ks lost a bundle. Retirement Accts are NOT pensions, which are guaranteed and thats why the big guys hate pensions, they dont get to play, manipulate and sometimes steal it, like Worldcom employees and Enron, where thousands of employees lost their 401ks and many that were already retired lost their income. Thats just two cases theres more.
The assualt on pensions is all about the rich and big banks getting full control over billions and billions more....

Pensions can be run just fine, as long as thier contributions are adequate, and the planners use the right formulas. Many pensions, like the ones in the construction industry work well because the planners know if they screw up there will be no money left.

The problem with public pensions is they seem to think anytime there is a shortfall they can just raid the state or local area's general fund and all is well. They also seem to predict very high rates of return that never seem to materialize.

I prefer a 401k as I can see what I have, I can choose how to invest, and I can get advice on how to invest it. Plus, it is MY money.

 

[Joe Steel]

I hear a few different things

1) They want to do away with 401ks and IRAs (you can keep what you have though) and make you put 5 percent into a govt retirement account.

I don't know if it's true but it would be an excellent idea. The vast, vast majority of workers are not qualified to handle their retirement savings.

And the idiots at CalPERS who predict a 8% return and only get 3% are, right?

The only thing keeping public pensions alfoat is tax money.

I don't know anything about CalPERS but I assume they've invested in stocks, bonds and mutual funds and have to deal with Wall Street brokers and traders. If that's the case, they're doomed to poor performance. Everyone associated with Wall Street is a thief.

 

[martybegan]

I don't know if it's true but it would be an excellent idea. The vast, vast majority of workers are not qualified to handle their retirement savings.

And the idiots at CalPERS who predict a 8% return and only get 3% are, right?

The only thing keeping public pensions alfoat is tax money.

I don't know anything about CalPERS but I assume they've invested in stocks, bonds and mutual funds and have to deal with Wall Street brokers and traders. If that's the case, they're doomed to poor performance. Everyone associated with Wall Street is a thief.

The issue is they assume a 9% rate of return, and end up with a 3% rate of return. So any shortfall in thier anticipated return is made up by the state and local general funds.

Where else do you think ALL pensions invest? 401k's and pensions invest in the same place.

But typical progressive response is to "blame wall street"

 

[Joe Steel]

I don't know anything about CalPERS but I assume they've invested in stocks, bonds and mutual funds and have to deal with Wall Street brokers and traders. If that's the case, they're doomed to poor performance. Everyone associated with Wall Street is a thief.

The issue is they assume a 9% rate of return, and end up with a 3% rate of return. So any shortfall in thier anticipated return is made up by the state and local general funds.

Where else do you think ALL pensions invest? 401k's and pensions invest in the same place.

But typical progressive response is to "blame wall street"

We only blame Wall Street because Wall Street is guilty.

Retirement income should be guaranteed by the government. We shouldn't have to rely on capitalists and their stooges.

 

[Toro]

This is a horrific idea.

Liberals, if you want to know why the term "liberal" is often used a pejorative, its for things like this.

I do believe that most people cannot optimally run their own money. But the 401k was created as a savings vehicle for individuals to save tax-free investing in higher earning assets. People already are invested in government debt through SS. They don't need the government forcing people into government debt at near multi-century lows in rates at the end of a 30 year bull market in bonds.

Just a terrible idea.