I have a former associate who tells me that House and Senate staffers have been
talking to Wall Street insiders about developing a common strategy to merge
private sector retirement plans with the Social Security system.
This was done recently in Argentina--government just took the pension
The possibility that this could happen here caused my friend and I to
discuss how to stay ahead of the power curve.
He suggested that paying a 10% penalty for premature withdrawal is
certainly favorable to losing the entire account--there's no way to argue with
He also suggested that paying taxes at 2008 rates would be favorable to
paying taxes at any rate in the coming years. That what we pay for taxes in
2008 will probably be the lowest rate for the rest of our lives--regardless of
how young anybody is.
So he is opining that the surest way to preserve wealth in the coming Age
of Obama is to not own a retirement plan--and to get out of them now. He
further believes that no matter how onerous the tax ramifcations of an early
withdrawal are they are still favorable to waking up one morning to hear that
the evil troica of Obama, Pelosi and Reid orchestrated an overnight seizure of
all retirement plans.
There are twenty million stories in The Naked City. This has been one of