liz_marcs (liz_marcs) wrote,

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Oh, for the love of Pete!

If I hear one more meme that Obama is a-gunning for our 401(K)s in some form or another, I'm gonna just have to get all factual on your ass.

Obama, if elected president will not...

(I say if elected because I am a Democrat. And I can state unequivocally the following things: 1) Democrats debate and govern through a process called the circular firing squad; 2) If any political party knows how to snatch defeat from the jaws of victory, it's Democrats; and 3) Will Rogers said it best, "I am not a member of any organized political party. I am a Democrat." Yes West Wing fans. Everything you heard about Democrats on this score is true. This is why I am manning the phones to get out the vote Monday and Tuesday night.)


What was I saying? Oh, yeah. If elected president, Obama will not:

  • Confiscate your money and dump into in the Social Security fund
  • Will not start taxing you on your 401(K) savings
  • Will not start taxing your employer on their matching contributions
  • Will not convert all or part of your 401(K) fund to some kind of government-bond backed security issue that will guarantee a 3% annual return (Wait! What do you mean you think that's a fantastic idea? Oh. I see. Like me you lost 12% of your investment in the last quarter. Carry on, then!)

In short, no one is going to take away your damn 401(K). It's your money. It's your savings. There's no way any Congress or any president would even think of suggesting that maybe you should turn over every penny of your private retirement account to the U.S. government so they can pay salaries and bonuses.

That's what Wall Street banks are for, silly!

In any case, any and all of the above 401(K)-related fear-mongering is a big ol' urban myth. In fact, the only solid 401(K)-related proposal Obama has put out there is to temporarily suspend early withdrawal penalties, allowing individuals to withdraw 15% of their savings up to $10,000 for any reason. (McCain has a similar plan, which you can read at the link.)

However, should either man put their proposal into effect, the ultimate cost of that savings loss will be borne by the individual who decided to raid the 401(K). Remember, the most powerful force in the universe is compound interest...even in these financially distressed times, provided you're a couple of decades away from retirement.

So, please, please, please stop telling me that Obama's after my 401(K). He's not. And if you stopped to think about it for more than 0.5 seconds, you'd realize that you're completely unhinged from reality if you believe this.

Thank you.

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