New 401K Decision

by Larry Levin

There may be a change on the way for retirement assets held in conventional ways. A report last week in Business Week shows that the U.S. government has 401(k) assets in their sites.

"The U.S. Treasury and Labor Departments will ask for public comment as soon as next week on ways to promote the conversion of 401(k) savings and Individual Retirement Accounts into annuities or other steady payment streams, according to Assistant Labor Secretary Phyllis C. Borzi and Deputy Assistant Treasury Secretary Mark Iwry, who are spearheading the effort.

"Annuities generally guarantee income until the retiree's death, and often that of a surviving spouse as well. They are designed to protect against the risk that retirees outlive their savings, a danger made clear by market losses suffered by older Americans over the last year, David Certner, legislative counsel for AARP, said in an interview."

Bloomberg reported Friday that Assistant Labor Secretary Phyllis C. Borzi and Deputy Assistant Treasury Mark Iwry are planning to stage a public comment period before implementing regulations that would require private investors to structure IRA and 401(k) accounts into what could amount to a U.S. Treasury debt-backed government annuity.

That should go over like a fart in church with the mutual fund industry.

Will it just be a new 401(k) decision for you to make? Or is it a money grab by the government to (eventually) force you to buy Treasury IOUs with your retirement funds in order to subsidize the out of control profligate spending in this country?

"Hello, my name is Senator Such-n-such. I'm with the government and I'm here to help." RUN!



Previous Day's Trading Room Results:

Trade Date: 1/15/10

E-Mini S&P Trades*
(before fees and commissions):


1) No "Secret's" trades were filled.

2) Algorithm positions (7)

3) "Reading the Tape" positions (9) ...combined Secret's, Algo, & "Reading the Tape" total...+2.25



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