Mustang's Corral

According to an article on Yahoo! finance, a couple of our candidates for president support automatic manditory enrollment of workers into IRA and 401k retirement accounts. Both Hillary Clinton and Barack Obama support such a plan. Each worker in the country would be signed up for a retirement plan. Sounds good on the surface huh? Let's think this through though. How do these plans work now? Firstly, you have to want to have the plan and second, you have to put part of your paycheck in these accounts. When you put money in these accounts, normally your employer matches a portion of these funds. In a goverment mandatory enrollment plan, you would have to participate even if you can't afford to put funds away for retirement. Let's face it, not everyone earns an income that allows for manditory savings. And what about the small business that will now have to match these funds? Or will the government be matching the funds and if so, how will WE pay for it? Higher taxes? When you hear a candidate say they are giving you something for free or making something manditory, think it through and think about how it will effect your wallet and the wallet of the person who fills yours, your employer! Nothing the government gives you is ever free! When the government or a politician says free, they most often mean "taxes to come".

The article I mentioned above is at: http://finance.yahoo.com/banking-budgeting/article/104
526/The-Candidates-on-the-Pocketbook-Issues