Self-Directed IRA Investing

Want the Government to take control of your retirement account?  If so, you’ll be happy to hear that there are plans for something called “Guaranteed Retirement Accounts (GRAs)” which would give workers a simple way to save in a manner “free of inflation and market risk and under the direct control of the Federal bureaucracy”.  Does anyone hear a train coming through the tunnel? In some versions under discussion there would be a specified real return above the rate of inflation.  Sounds pretty good.  Who needs a broker or advisor or to take the time to manage your retirement portfolio when it will be guaranteed by the Government?

Does anyone that is aware of how Social Security works really believe that the  Government has found the Holy grail of investment success? Of course we are savvy enough to know that if they were unfortunate enough to fail at their objective and not meet their promises, they will simply tax the income earners at the time to make up the difference or change the law or both.

In Chapter III of the Annual Report on the Middle class, issued by Vice President Biden in February the administration suggests enhancing retirement options by including the annuitization of 401(k)s.  This runs directly against the trend that more companies are offering defined contribution plans than defined benefit plans, having learned that that can’t meet their obligations in a down market.  Having taken over automobile manufacturing, banking, insurance and health, the Government clearly thinks it can do better. With the recent trend toward solving all problems through debt-financing and/or taxation, it appears that the Government’s appetite to solve all of the countries current problems by increased deficit spending has yet to be satiated.

If for any reason you don’t want to turn your retirement account to the Government, I suggest you express your opinion to your Government representatives.