Obama Government Wants Savings Accounts : Promises Limits?

This isn't something new - the Obama administration broached this idea years ago - their plan was to take our savings and guarantee a $600 dollars a month for life from the government. How stupid do they think we are? Oh wait, a majority of the population voted for this to happen, twice.

That the government is broke had no bearing on the plan. And that Social Security, Medicare and Medicaid are broke as well didn't make a difference on the progressive plan to take the trillions in savings from citizens.

How cool is this, but who voted for this anyway? Twice!!??

Obama's Budget Proposal Seeks to Cap Retirement Savings
Source: Blake Hurst, "When Saving Is a Problem Not a Virtue," The American, April 18, 2013.
April 23, 2013

President Obama's 2014 federal budget proposal contains a shocking recommendation for every American saving for their retirement. A section of the budget proposes limiting retirement savings in tax-preferred retirement accounts. The proposal invokes the nebulous principle of fairness but instead penalizes Americans who have worked hard and saved diligently for their retirements, says Blake Hurst, a contributor to the American.

• The budget seeks to place a limit on the 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.
• The proposal arrives at a time when recent articles have revealed that baby boomers have less than $100,000 on average saved for their retirement.

Limiting the balance to $3 million would only save the federal government an estimated $9 billion over 10 years, which is barely enough to cover the current deficit for a few days.

• The rule builds upon Obama's belief that "at a certain point you've made enough money."
• As life expectancies rise along with the cost of living, what is adequate for retirement today might not be adequate in a few years, given that, statistically, many people will live well into their 80s, 90s or beyond.
• The president's figure of $200,000 does not seem reasonable if one expects a 30-year retirement window during which inflation rises at 6 percent per year.
• If inflation rises by that much, which could be possible given the government's current fiscal path, the $200,000 retirement income today would be worth only $40,000 in 30 years.

While annual contribution limits have always existed, the proposed rule imposes a limit on the dollars in the account for the first time. Such a penalty would discourage self-discipline, prudence and the financial wisdom of savings.