Rantings and tirades of a frustrated economist.
How in the #*%%$%$ does Australia of all places need an emergency "tax" of this sort!?! They're almost a Western equivalent of Saudi Arabia!! Selling copper and coal to the Chinese is like owning your own printing press that prints gold, out of thin air!Answer: Australia has a very weak military and they are involuntarily being pressured to do this by Them. That's all part of Their plan.Buy gold while you still can. Before They take it all away. The central banker rootless cosmopolitans are attacking all nations.
I live in Australia and believe that the reason they're now doing this is that, unlike 401k, Superannuation was taxed at 15% on the way in with the understanding any earnings and payout at the end of working life would be tax free.The problem with this system is that the government should have been stashing away that 15% of the contribution to pay for services when people retire and stop paying tax, but instead they spent it.Now we're going to have the same problem as everywhere else where we'll end up with the ratio of working to non-working people not being enough to keep the government running.So they start with the 'rich' and work their way down, or just keep it the same knowing that inflation will mean that everyone in 30 years time will fall into the bracket formerly defined as 'rich'.
One thing the Australian Immigration department has been doing quite well is targeted immigration based on age.Have a look at the population pyramid of Australia and what do you see?http://www.abs.gov.au/websitedbs/d3310114.nsf/home/Population%20Pyramid%20-%20AustraliaWhat I see is a lot of little peaks and troughs, certainly nothing and pronounced as in the US or Canada, be we will still end up with a bigger proportion of retired as a percentage of overall population than ever before, which is why the big raid on Superannuation.Government loves a captive audience!
Run and hide your money The gov is coming for it! Its not enough that they think they own you but now they want to own your money now!Hide my money under the mattress!lol
I'm sure you've seen the news about Obama's proposal to limit retirement accounts to $3 million in value. I think the move is seriously beginning here now. My fear is that we'll soon be subjected to incessant chatter about "retirement insecurity" and/or "retirement fairness" or some such drivel, followed by a series of crazy proposals to confiscate the various forms of retirement accounts we have in the U.S. This will all be done to create a false alternative scenario, designed to make something like Teresa Ghilarducci's "Social Security II" proposal appear to be the "reasonable middle-ground." I'm not quite to the point of cashing out my IRAs yet (though I'm tempted, since I'm about to acquire some more land and I could simply put the money toward that purchase). I'm definitely done contributing more to them though. I'm thinking I should mentally write off my HSA, too.
don't we all already pay taxes on IRA withdrawals? (except for Roth IRAs which are taxed ahead of time)
don't we already pay taxes on IRA withdrawals (except for Roth's which are taxed going in)?
I am slowly getting Mrs. G to come around to my way of thinking, but it is like turning the Titanic. The myths perpetuated by the bankers, brokers and politicians have brainwashed us all. Amazing how the hippie Boomers who learned to not trust the government are slaves to it, and lap at the poisoned fermenting milk they dish out for the masses.But I digress. I have been preaching on my little soapbox to have tangible precious metals (coins) as part of our overall package/strategy that does include some edible commodities and "Smith and Wesson" materials for when the bankers "go on holiday" for 12 days and the government raids the accounts. We have to get smart about this and be proactive. The enemy is almost at the gate, and they will not be denied. There are too many hungry mouths to feed with so many parasites on programs and not enough money to go around. Besides, we don't know what we're doing anyway....and cannot be trusted with guns, children, guns or freedom.
Look, buying gold or otherwise hiding your money won't help much if the government is bold enough to actually steal your 401k. At the point that happens, it's revolution time, because they won't stop with the retirement money. In fact, better to start organizing now for what is likely inevitable.
There is one VERY MAJOR and VERY RELEVANT difference between Australia / Cyprus / Canada / EU countries and America, and that difference is ... Americans are well armed, well trained in the use of firearms, and dangerous when aroused. I'm not disputing that "they're coming for out IRAs" ... I'm just pointing out that some of 'they' who come for our retirement funds will become targets of well-armed, irate savers, who in most cases are old enough NOT to care overly much about the consequences of shooting the bastards. They could riot in Cyprus and Greece - and did - but they couldn't actually SHOOT anything ... or anyone. Piss Americans off enough and we can ... and will.
The theft of your money will be done by unnamed people who won't even admit where they work. It will be done through computers on a Friday night after the banks and markets close, say 9 pm Pacific time. On Saturday you will find that your account access cards don't work.Preppers will use some of their cash on hand to buy out the convenience stores of food and anything of barter value.Mobs and gangs will destroy every ATM and bank windows they can find.On Sunday, "Mr. Thompson" will make a speech of national importance. You will then find out the purpose of DHS in buying armoured fighting vehicles and billions of bullets.Enjoy the Decline!
Anybody here have directions to Galt's Gulch?
Its honestly no big deal.The Australian government tinkers with the superannuation system every year. This particular change is intended to reduce the number of people withdrawing from their pension fund while still employed, closing one of our legal tax dodges that annoys the Australian Tax Office and Treasury.Basically, what happens is that people with high marginal marginal tax rates get their employer to contribute an additional 15k to their pension fund out of salary, getting taxed 15% (all contributions to super funds are taxed at 15%) instead of at their marginal tax rate. Then, they draw down 12.75k from their pension fund, which is normally tax free. So, they end up paying 15% tax instead of 41.5 tax, on that 15k.So yeah, changes to super get hyped up, but this really isn't a big deal.
I keep telling people IRA/401k is a suckers bet and the roth versions are a double suckers bet.
I have done the responsible thing for the last 40 years and have diligently saved for my retirement, investing pretty well and putting together a mid-seven figure balence in my IRA. It would have been possible to defer taking anything out of my IRA for the next eight years, but I have decided to bite the bullet, pay the taxes, and dismantle my IRA this year and next. Yes, President Obama will get a multi-million dollar tax payment from me to pay off his supporters. But I will have the last laugh because these IRA funds will be added to other tax-sheltered investments I have made - quasi IRAs if you will - that will easily recoup the lost tax dollars.
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