Must Read: Obama’s Retirement Grab Conspiracy Unfolds

3 Concrete Approaches to
Protect Yourself As Desperate Obamaites
Ramp Up New Programs to Target
Your Retirement Plans

Independent Living News has been predicting for more than two years that as the country’s finances continue to deteriorate, the Obama Administration will quietly begin to mess with people’s retirement funds.

Well, that nose is under the tent already.
Targeted Nest Egg

As if the invasion of financial and medical privacy through Obamacare… plus IRS inquiries of conservative, patriot and Tea Party groups weren’t enough… there’s another initiative in the works that will further punish financial success and discourage self-reliance: Limiting how much money you can accumulate for retirement.

President Obama’s 2014 budget has a proposal that will cap the amount that Americans can save in their 401(k) and IRA accounts. What’s the White House reasoning for this proposal? Quote: “Some people have accumulated substantially more than is needed to fund reasonable levels of retirement savings.

That’s right. He is now judge of how much retirement money you should have. Obama proposes to “limit an individual’s total balance across tax-preferred accounts to an amount sufficient to finance an annuity of not more than $205,000 per year in retirement, or about $3 million for someone retiring in 2013.”

Obama’s War on 401Ks Has Begun

The proposal also says that Americans can keep contributing to their retirement accounts until they hit the pre-determined cap amount. However, at the rate the Federal Reserve is expanding the US money supply and devaluing the currency, who knows if $205,000 a year will be enough to comfortably retire on in the future? And more to the point, how is this any of the government’s business?

While this will appeal to Obama’s political base in the dependent class, it’s nothing more than a thinly disguised attempt by the federal government to get more revenue now instead of later. The White House claims this proposal will raise an extra $9 billion in revenue over 10 years. Common sense and simple mathematics tell you that less than a billion dollars a year won’t put a dent in a trillion dollar federal deficit. It’s clear that their real agenda is to launch an attack on personal savings and wise financial management.

If the government is willing to change this rule on retirement accounts, they’re more than likely to do the same with others. What’s to stop them from changing the tax-exempt distribution status of a Roth IRA?

It used to be sound financial advice to max out the contributions on your 401(k) and IRA accounts. However, because of the anti-capitalist nature, the possibility is also on the table that the Obama Administration and/or Congress could nationalize your retirement accounts, and require they be “invested” in a government annuity or Treasury bonds – which pay a mere pittance in interest.

In light of these proposals (and a greedy federal government), what can you do to protect your wealth and lower your tax liability? Here are three solutions that can protect your finances against “Government Gone Wild:”

Solution #1 – Save in physical gold and silver outside of your retirement accounts, as a hedge against dollar devaluation and higher inflation. Store part of your holdings where you have immediate access (to use for barter and/or sell for cash as needed), and store some outside of the United States.

Solution #2 – Consider wise investments where you can lower (and even defer) your tax bill. Rental real estate that produces positive cash flow fits this description. The tax code allows property owners to take depreciation expense on the purchase price of a property for up to 27.5 years. Property investors can also defer capital gains on the sale of one or more properties by quickly re-investing the proceeds into one or more similar properties – also known as a 1031 exchange. With residential real estate you can borrow a significant amount of the purchase price and make your investing dollar go further. Keep in mind that debt and leverage are double-edged swords. Make sure you have enough cash reserves to cover the mortgage when one or more of your properties could be vacant. Consult with a competent tax accountant who works with successful investors, and attend monthly meetings of local real estate investing clubs. Talk with other attendees, and seek out the most knowledgeable and successful investors.

Solution #3 – Save in long-lasting food and even popular barter items such as cigarettes, wine, vodka and whiskey (even if you don’t drink or smoke). If we see higher (or even hyper) inflation… supply lines temporarily cut… and/or civil unrest, these items could be more valuable for you and your family. Alcohol and cigarettes will always be in demand, and are excellent barter items in more difficult economic times.

In summary, government fiscal and monetary policies are punishing savers and retirees. Although it seems counter-intuitive, your best plan of action now may be to build and protect wealth for the shorter-term, instead of saving for the long run.

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