A New Kind of Forced Savings Proposed by the Government and Wall Street: Look Out
Some people need "forced savings" in order to put money away for a rainy day. For example, they think of their 401k contributions which are deducted from their paychecks as a "forced savings" since the money comes out of their pay before they see it. Others think of paying a mortgage on their home as a kind of "forced savings."
Whether any of these "forced savings" are particularly good ideas, the one thing they have in common is that you have to decide that you want to do this. No one forces you to take a mortgage. No one twists your arm to pay into your 401k - or at least that was the case.
Now it seems we're going to get literal "forced savings" without our even being given the chance to decide whether we like the idea or not:
The retirement savings crisis in America has brought us to this point: It’s a near certainty that mandatory savings accounts are in the future of anyone with a full- or part-time job. And you'll notice in this report that Wall Street firms - posing under the guise of social concern - will be the recipients of a waterfall of money coming out of your pockets, without your consent. So of course they think this is a great idea.
Perhaps you should make it a rule to look with jaundiced eye on any schemes proposed where both the government and big Wall Street firms appear to agree with each other on both the need for the scheme and the structure of the scheme - as we have here...
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Whether any of these "forced savings" are particularly good ideas, the one thing they have in common is that you have to decide that you want to do this. No one forces you to take a mortgage. No one twists your arm to pay into your 401k - or at least that was the case.
Now it seems we're going to get literal "forced savings" without our even being given the chance to decide whether we like the idea or not:
The retirement savings crisis in America has brought us to this point: It’s a near certainty that mandatory savings accounts are in the future of anyone with a full- or part-time job. And you'll notice in this report that Wall Street firms - posing under the guise of social concern - will be the recipients of a waterfall of money coming out of your pockets, without your consent. So of course they think this is a great idea.
Perhaps you should make it a rule to look with jaundiced eye on any schemes proposed where both the government and big Wall Street firms appear to agree with each other on both the need for the scheme and the structure of the scheme - as we have here...
The world’s largest investment firm BlackRock, with $4 trillion under management and a lot of weight to throw around, is the latest to sound the call. “We need a comprehensive solution to retirement savings that includes some form of mandatory retirement savings,” CEO Laurence Fink said this week. He added that his firm has been agitating “quite noisily” for retirement overhaul and that going forward “we’ll be louder as a firm.”Besides the idea that your money will be taken from you whether you want this forced savings or not, there's the issue of firms like Blackrock talking this idea up as if they're doing us all a favor. Guess who will be the recipient of all this forced savings?
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