Joe Biden will decimate your retirement plans. I know that’s a bold statement, but stay tuned because I’m going to explain it to you.
From Philadelphia, the home of the Liberty Bell, Financial Freedom Radio starts now. Here’s your host, Raymond Jewell.
Good morning and welcome to FinancialFreedomRadio.com. I want to thank you all for coming and downloading, watching. We’d like to have you like, share, and subscribe to our video podcast. We work off of referrals. It’s very important for us to spread the word, especially with what you hear today. If you like what you hear then do nothing, but if you don’t like what you hear, then you need to tell other people. I’ll explain it, but let’s check in with our illustrious producer Steve. How are you, Steve?
Good morning, Dr. Ray. How are you?
I’m good, Steve. How are you? How was your weekend?
It was a good weekend. It’s fun being in front of the camera from time-to-time, but I’m certainly glad to have you back.
Thanks for filling me for me, I appreciate it. I was away for a couple of weeks. What we’re doing these shows just so you know, if I go away and am not able to record the shows, Steve likes to come in with what we call nut and bolt, bread and butter budget type finance issues. It’s good because he’s actually running a system for himself. He’s doing it very well. He’s very successful at it. We like to give you a break, but give you some nut and bolts. So then if you really just want that, let us know and we’ll figure out a way to provide more of that. He always accuses me of getting too heady. He likes to bring it down to the level that he likes.
I’d call it strategic and tactics. Strategic is your long-term vision, your long-term plan. Tactical is the baby-steps needed to get there.
You’re not going to like what I tell you today.
I’m just very happy that you’re back and your fans are happy that you’re back.
Now we got canned laughter and applause.
I’ve been playing while you were gone.
I was doing my reading on the Internet and I came across this article and it said Biden’s dramatic change to retirement accounts could reduce their availability and the industry is warning about it. So his dramatic change to retirement accounts could reduce their availability, even get rid of them. I want to go over this article that I got. It was in the Washington Examiner. We really need to know these things and nobodies telling us about it because the fake media doesn’t want us to know. Let’s dig in here.
Former Vice President Joe Biden on his presidential platform includes a tax proposal that could force some employers to abandon offering retirement options to workers. The industry is warning against this. The plan would dramatically change the incentive to save for retirement by replacing the current referral system with a tax credit. This is funny money here. Zero win on this. Most retirement plans such as 401k and IRAs allow taxpayers to delay paying taxes on contributions to their accounts until they retire. By suspending this tax until retirement, workers have been able to grow their nest eggs beyond what they would have been if taxes were paid in the year the money was received. This plan does not play out a tax rate for a credit, but it says that they’re looking to tax anywhere from 26-30% of your 401k or your IRA program. Then, they want to give you a tax credit to take it back up to 90%. So they’re always going to whack you for a small percentage if they have a tax credit. Tax credits come and go. They can go away. The fact that they have even made a notion to start to tax 401k and IRA plans will devastate this retirement field. Right now, pension plans are done away with. The old pension plans that were around years ago, there’s only a few companies that have them. They’ve converted all to 401ks and IRAs. The 401ks, they give you a match so that they can put some money in there, but they don’t have to fund these old-fashioned pension plans. So they made that shift away from it. Younger people don’t have the old fashion pension plans that gave you a specified income. Then you would have a 401k on top of it. Those are not around anymore.
When did that change?
It’s changed dramatically over a period of time, like 20 years or 30 years. Started in the ‘60’s up until the present day. There’s still some around.
I’m pretty sure I still have a pension.
You still have one. Yes, you do, but those aren’t around.
My kids aren’t going to have that is what you’re saying.
That’s right. They’re thinking they can save into a 401k and they can have it pre-taxed and then when they take the money out, they’ll pay ordinary income tax on the money, but they want to tax it upfront because they need money into the coffers of the government.
Are they planning on taxing it upfront and when you withdraw it or just upfront?
So far, just upfront. They want to give you a tax credit back so if you have $100 and they take out 32%, $32. They want to give you back $26. You scratch your head and go, what is this all about. Follow the money. If they give you back $26, maybe they’re going to give you back $20 in the future, maybe they’re going to give you back $10 on $100. So now, they’re able to control your money. Right now, they have no control over it. The only control is growing it because you don’t get to spend it until you hit age 59 ½. Then when you spend it, you have to pay ordinary income tax. Most people defer it until they go and retire. This is a step for them to get inside of your retirement plan and be able to control it. Then they can raise the taxes. They say we’re going to raise your taxes, but we’re going to give you a tax credit. When they raise taxes, it puts money into the coffers right away. When they give you a tax credit, that’s adjusted on your end of the year tax state. People will get money right away and then they’ll pay a little less in taxes because they’ll get a tax credit. It’s all funny money.
It’s funny money when it leaves my account.
That’s right. It’s real money when it leaves your account, but they’re manipulating it so that they can control it. They’re fooling you into thinking that tax credit is giving you the same thing. They’re fooling you to think that they’re going to tax your money and take it right away because they’re going to pull that out as you make that deposit. If you put money in your 401k, remember you don’t put it in all at once, if you put money in every month, whatever you put in they’re going to tax. You don’t adjust it until the end of the year in the tax credit scheme. The tax credit can go away. Follow me?
Yeah, but there’s no guarantee that the tax credit will go away. I think that’s kind of the doom and gloom. I think you’re right. I think it could potentially go away, but right now what really bothers me most about this is you’re taking money away from me now and they’re going to take money from me every single month, but I might get some of it back eventually in the year.
Look at the tax credit again. Biden is wanting to start to tax your 401k and your IRA. That’s a huge leap right there. If they’re able to pull this off, they will have created a taxable system within your 401k which wasn’t before. It was tax-deferrals. They have a taxable system in the Roth IRA. The 401K has a bigger pile of money they can go after. The tax credit that they’re talking about, oh my goodness we had a bad year or our budget is out of whack. We’re going to have to take away the credit for this year. They can move that credit whichever they want. So now, the government has control of your money more than they’ve ever done before. They’re doing it under the promise of taxing your retirement fund. Now, look at the retirement plans that are offered by companies. Do you think businesses are going to put up with that? They have to pay and withhold the taxes. Do you think they’re going to put up with funding a retirement plan and putting in matching funds into the retirement plan? They’re not. They’re just going to drop them altogether and you’re on your own. There are guidelines in what you can put away and what you can’t put away. It’s opening pandoras box and these people that are for Biden are going to wake up and they’re not going to have any money.
If you have somebody in a 10% tax bracket, now the tax bracket is whatever you’re in, they’re not going to blatantly tax this. They’re going to be whatever you’re in. If you’ve got somebody in a 10% bracket and they’re getting 26% credit, they’re making money aren’t they? Those people are in a lower tax bracket for a reason. The percentage of them are a lot less than the percentage of them that are in the area that’s going to get taxed the most. So what they’re saying is, they’re going to tax it whatever the sliding scale is for the income you have. Remember, Biden said I’m going to raise your taxes. These are ways that he’s going to do it because he needs $4 trillion and God knows what else he needs for this greed deal. I’m sticking with this right now.
The retirement advocacy group AARP recently proposed the policy as an option to promote retirement savings. Whose side are they on? AARP. I think it’s 50 and older to be a member of AARP. Whose side are they working for? They are one of the most liberal organizations around.
Corporations proved a long time ago that they were working for themselves. I’ve yet to find a corporation that’s working for the working man.
Look at how the distributed money, when they brought in all this money from outside the country into the coffers. That’s another story. Under the Biden plan, that $100 would be taxed in the year it was earned. A taxpayer and the 32% tax bracket would pay $32 in taxes. Meaning that $68 would be invested in the retirement plan. That right there is enough to scare the crap out of you. If people vote for Biden because they hate Trump, suck it up. Trump has been working for people for 4 years. The economy has gotten incredibly strong under Trump. We had this virus thing and nobody had any control over that. Everybody wants to blame Trump. The corruption that went on in the Democratic Party. If anybody is planning for Biden, you’re going to put your retirement plan at risk. If you don’t care, you shouldn’t be listening to this show. If you do care about your money, this is one reason to stay clear of the leftist democrats because they will move into taking your money at warp speed.
Under the current system, $100 would’ve been invested in the retirement account. Biden’s plan would be advantageous for low-income workers, as I said. For example, a taxpayer and a 12% tax bracket investing $100 in a retirement account would receive $114 that they have to pay in taxes and receive a credit. That’s not the norm. That is going to be looked out of whack. It’s all about their whole mantra is all about raising the middle class. They’re raising the lower middle class and milking the middle class. Trump has worked really hard to build up the middle class. They want to tear it down in lieu of the lower middle class. Nothing wrong with being lower-middle class, you can work in the lower-middle class. Now they’re talking about whacking the rich and now they’re talking about whacking the middle class.
Doesn’t it seem to you like they’re trying to raise the lower class and lower the middle class so that there’s only really one class? There’s the ruling class and then there’s everyone else. That’s what it feels like to me. The poor people are going to get more money, the people who are barely making ends meet are basically going to be giving it to the poor people and then you’re going to have 2 sets when you would’ve had 3 sets of people. It just doesn’t make any sense.
None of these rules apply to Congress.
No. Not that I know of. The ruling class is working really hard. Think about what they do. They talk about problems, they create lies. It’s the Alinsky playbook. Create lies and then they take these lies and they want you to believe them. They sell them so hard that some people actually start to believe them because they hear them so much. Feed a person enough garbage and they’re going to just love eating garbage.
Wasn’t it George Orwell said that telling a lie so much until people believe it’s true.
You keep selling that lie. You’ve got the media. It’s no secret on conservative libertarian, but the media is pushing real hard to get you to believe that. I don’t know what the percentage of the left media versus the right media, but it seems like it’s coming at you from all directions. We’ll talk about all these holes and everything. How in the world did in one week all these battlegrounds states go from Trump to Biden in a massive way? That’s statistically impossible for that to happen unless you’re waving the polls. One of the things that’s important is to understand what is happening. They’re going after your money, folks. This is Financial Freedom Radio. Do you want to be free? Get those people out. Get rid of them. They’re going after your money, this new green deal is going to cost you trillions of dollars. I don’t care what they say, they’ll lie to you. It’s a blatant fact that Bernie Sanders people want that. It’s going to cost money and they’ve got to get their money from somewhere or run up massive debt. Your personal pocketbook is their target. They don’t really care about the poorer people. They just want two classes. Them and you. They want to try to get rid of the wealthy. They’ve been hollering and screaming about getting rid of the wealthy. Wealthy people fuel the economy through jobs. If you don’t have a job and not a government job, that’s not a wealth creator. A government job does not create wealth. It just passes money from one place to another. You want to create jobs and create wealth and create businesses. Wealthy people put their money into further growth of businesses.
A lot of wealthy people, people that work for them spin-off and go into their own entrepreneurial direction and become their own business. If you stop that, and you’re going to go down the path of communism, socialism. Right now, we’re more socialist than we were 50 or 100 years ago. That can very quickly morph into a group of people trying to control everybody. You’re going to see people fleeing the country. Money is going to be leaving here in buckets.
It frustrates me to hear this kind of stuff because I just don’t like people being taken advantage of. When these politicians, Joe Biden and Kamala Harris outright lie to people, and people end up believing it, I get upset. You may not like Trump, but Trump is not a lier. They’ve tried to make him out to a lier and they’ve very successfully done this. They’ve very successfully have driven the narrative so hard that you’ve got to be really strong not to fall prey to it. We’ve got 27 days before the election and now they’re talking about rioting in the streets if they don’t win. How crazy is all of this? We need to get a chokehold, I shouldn’t say that because it will come back to haunt me, we need to get them under control so that people can live a good life. I’m hoping the middle part of this country and these battleground states, the polls are showing people that pay attention to polls and most people don’t. Most people are Trump supporters. We’ll see.
If you want to lose your money and you want your employer to cash out on your money and turn that over to you and not even fund it and say we’re done with these people. We don’t want any part of it. Then vote for Biden. If not, if you want to control your wealth, vote for Trump.
Let’s wrap this up. Thank you all for coming and downloading. We’d like to have you like, share, and subscribe. Tell your friends. We need all the help we can get to get people into this system, to hear this information so that you don’t get fooled by the financial institutions, by the left-wing politicians and maybe some right ones and you understand the big picture. I want to thank you all for coming and take care and have a great week. God bless you.
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