MORE MAGA....

Trump Just Fulfilled His Billionaire Pal's Dream

"Trump just changed the rules to let Wall Street’s most predatory industry get its hands on hundreds of billions of dollars of ordinary workers’ retirement savings. Now his friends in private equity are celebrating." 

"...the trick Trump just pulled off for his billionaire pals was something particularly special — it could end up being one of the single biggest financial heists in history." 

"While long-standing worker-protection regulations have prevented 401(k) plans from investing in high-risk private equity firms, the letter now permits corporations to funnel that money to those firms, which charge notoriously giant fees." 

"Trump’s administration argued that workers should feel fortunate and thankful that the administration will now let employers turn their savings over to private equity barons." 

https://jacobinmag.com/2020/06/trump-just-fulfilled-his-billionaire-pals-dream 

Also by David Sirota....
 

Joe Biden has named several progressives, including Rep. Alexandria Ocasio-Cortez and Sara Nelson, to newly announced policy “task forces.” This beats him just sneering at leftists — but it’s no great progressive victory that a few good people are on a random list of names for toothless task forces.

Our employee's can choose from about 3 dozen different investment vehicles to invest their 401K into.   I have literally zero say in it.

6 minutes ago, Highmark said:

Our employee's can choose from about 3 dozen different investment vehicles to invest their 401K into.   I have literally zero say in it.

You legally had NO say. You do now so watch what happens...more raping and pillaging of the middle class.

Jacobin is a leading voice of the American left, offering socialist perspectives on politics, economics, and culture. The print magazine is released quarterly and reaches 50,000 subscribers, in addition to a web audience of over 2,000,000 a month.

Just now, Mainecat said:

You legally had NO say. You do now so watch what happens...more raping and pillaging of the middle class.

You understand you are exactly what you are railing about?

Do you think because you 'agree' you would get to keep what is yours?

You are the walking, talking definition of a useful idiot.

1 minute ago, Snake said:

You understand you are exactly what you are railing about?

Do you think because you 'agree' you would get to keep what is yours?

You are the walking, talking definition of a useful idiot.

One more time...

While long-standing worker-protection regulations have prevented 401(k) plans from investing in high-risk private equity firms, the letter now permits corporations to funnel that money to those firms, which charge notoriously giant fees." 

 

Just now, Mainecat said:

One more time...

While long-standing worker-protection regulations have prevented 401(k) plans from investing in high-risk private equity firms, the letter now permits corporations to funnel that money to those firms, which charge notoriously giant fees." 

 

One more time.....

This guy thinks AOC is quality legislative material.

13 minutes ago, Mainecat said:

You legally had NO say. You do now so watch what happens...more raping and pillaging of the middle class.

oh shut the fuck up.  That article you linked is biased horse shit.

14 minutes ago, Mainecat said:

One more time...

While long-standing worker-protection regulations have prevented 401(k) plans from investing in high-risk private equity firms, the letter now permits corporations to funnel that money to those firms, which charge notoriously giant fees." 

 

One more time.....

1. Those investment firms do not necessarily have single investment options of which the employee will still have choices.

2. Owners must use the same investment options as their employee's.   It would be foolish for owners with 401K's to choose bad investment options.

3. The article is assuming all these firms are bad when in fact they likely are much better and will draw larger returns over and above any increased fee's.  

10 minutes ago, DriftBusta said:

oh shut the fuck up.  That article you linked is biased horse shit.

You better check the new laws There rookie before you open your yap.

The laws have changed because of who is running the show...oh look who wrote the new laws.

435 billion worth

1 minute ago, Highmark said:

One more time.....

1. Those investment firms do not necessarily have single investment options of which the employee will still have choices.

2. Owners must use the same investment options as their employee's.   It would be foolish for owners with 401K's to choose bad investment options.

3. The article is assuming all these firms are bad when in fact they likely are much better and will draw larger returns over and above any increased fee's.  

You know who you are talking to?

MC was a integral and respected part of a large corporation and knows the ins and outs of all your financial options.

I mean show the guy some respect; those urinal cakes don't get put there by themselves.

Just now, Mainecat said:

You better check the new laws There rookie before you open your yap.

The laws have changed because of who is running the show...oh look who wrote the new laws.

435 billion worth

Now do the Clinton Foundation!

2 minutes ago, Highmark said:

One more time.....

1. Those investment firms do not necessarily have single investment options of which the employee will still have choices.

2. Owners must use the same investment options as their employee's.   It would be foolish for owners with 401K's to choose bad investment options.

3. The article is assuming all these firms are bad when in fact they likely are much better and will draw larger returns over and above any increased fee's.  

Good luck. Watch  huge losses for the middle class.

read the link 

2 minutes ago, Mainecat said:

Good luck. Watch  huge losses for the middle class.

read the link 

So you read it on the internet.

Poor McLiar, he’s more confused than  Moochelle Obama’s gynecologist.

Edited June 16, 20205 yr by Sleepr2

6 minutes ago, Mainecat said:

Good luck. Watch  huge losses for the middle class.

read the link 

I have and its so unbiased it was a joy to read.    

Care to give some actual examples of below?

If politics is the art of the sleight of hand, then Donald Trump is one of the deftest magicians of all time — a master of creating mesmerizing spectacles, while his minions quietly rob everything in sight. This David Copperfield routine has become so mundane we are practically numb to it, but the trick Trump just pulled off for his billionaire pals was something particularly special — it could end up being one of the single biggest financial heists in history.

Edited June 16, 20205 yr by Highmark

Just now, Sleepr2 said:

Poor McLiar, he’s more confused than  Moochelle Obama’s gynecologist.

It is so nice to see guys like him slowly disappear off of these sites.   The constant barage of leftist bullshit opinions is so old.   When you have politicians from the 80's trying to win elections, you will have topics rehashed from the same decade.

16 minutes ago, racer254 said:

It is so nice to see guys like him slowly disappear off of these sites.   The constant barage of leftist bullshit opinions is so old.   When you have politicians from the 80's trying to win elections, you will have topics rehashed from the same decade.

It took a newcomer to take the United States to where it is today.  

25 minutes ago, Mainecat said:

You better check the new laws There rookie before you open your yap.

The laws have changed because of who is running the show...oh look who wrote the new laws.

435 billion worth

Unlike you, I read actual financial publications, not link ones I've never heard of.  No one is talking about this, because there's nothing to see.  5 years in the biz this year, and over 250 families trust me with their money along with several 401k plans I advisor on.  435 billion is chicken scratch in the overall scheme of retirement assets.  I ignore 95% of the sky is falling bullshit you post.

28 minutes ago, spin_dry said:

It took a newcomer to take the United States to where it is today.  

Your type is easy to pick out and your schtick is to old.   You leave a thread as soon as you can't find the correct response from some dem website.

6 minutes ago, racer254 said:

Your type is easy to pick out and your schtick is to old.   You leave a thread as soon as you can't find the correct response from some dem website.

If you haven’t noticed, the country is a fucking mess since trump took over. 

1 hour ago, Mainecat said:

You legally had NO say. You do now so watch what happens...more raping and pillaging of the middle class.

so you think it was better to have no say in your 401k ? 

I would rather have my money in  Bel Air investments than schwab shit any day .

 

1 hour ago, Mainecat said:

You legally had NO say. You do now so watch what happens...more raping and pillaging of the middle class.

Bullshit.   Employers have always had a choice.   Last year the bank who ran ours was sold including the retirement division.   We could have easily chose another firm.   While it might have been limited as to who we chose we still had a choice to move it.  

10 minutes ago, spin_dry said:

If you haven’t noticed, the country is a fucking mess since trump took over. 

Really?   Funny how the people you rally for have been in DC for decades, yet you blame it on trump.  

1 hour ago, DriftBusta said:

oh shut the fuck up.  That article you linked is biased horse shit.

The article was so slanted I really couldn't even tell what the issue was.  Here is the DOL release on it.

Investors can own funds with private equity investments, they can't own them directly.  It isn't an investment option I would choose but it is something others should be able to make their own choice on.

What @Mainecat doesn't understand is fewer and fewer companies are going public for average investors to even get a chance to invest in.  Many are now debt financed with the lower cost of capital.  Private equity can have a large range in the cost of capital depending on the situation of the company.  The SEC requirements and costs of raising capital through equity are driving companies to less expensive ways of raising capital.

@Mainecat should investors be locked out of those investment avenues because all their money is tied up in a 401K at an employer?

 

Quote

 

News Release

U.S. DEPARTMENT OF LABOR ISSUES INFORMATION LETTER ON PRIVATE EQUITY INVESTMENTS

WASHINGTON, DC – The U.S. Department of Labor today issued an Information Letter under the Employee Retirement Income Security Act (ERISA) concerning private equity investments as a component of a professionally managed asset allocation fund offered as an investment option for participants in defined contribution plans. 

On May 19, 2020, President Trump issued Regulatory Relief to Support Economic Recovery Executive Order 13924. President Trump directed agencies “to remove barriers to the greatest engine of economic prosperity the world has ever known: the innovation, initiative, and drive of the American people” in order that we may “overcome the effects the virus has had on our economy.”

“This Information Letter will help Americans saving for retirement gain access to alternative investments that often provide strong returns,” U.S. Secretary of Labor Eugene Scalia said. “The Letter helps level the playing field for ordinary investors and is another step by the Department to ensure that ordinary people investing for retirement have the opportunities they need for a secure retirement.” 

Chairman of the U.S. Securities and Exchange Commission Jay Clayton commended the Department’s efforts to improve investor choice and investor protection, saying the Information Letter, “will provide our long-term Main Street investors with a choice of professionally managed funds that more closely match the diversified public and private market asset allocation strategies pursued by many well-managed pension funds as well as the benefit of selection and monitoring by ERISA fiduciaries.” 

Private equity investments have long been part of the investment portfolios used by defined benefit plans to fund retirement benefits for many American workers, but they generally have not been incorporated into investment funds used by defined contribution plans, such as 401(k) plans. Rather, 401(k) plans generally use mutual funds, bank collective investment trusts, and insurance company pooled accounts with portfolios focused on publicly traded stocks and bonds. The Information Letter addresses private equity investments offered as part of a professionally managed multi-asset class vehicle structured as a target date, target risk, or balanced fund. Adding private equity investments to such professionally managed investment funds would increase the range of investment opportunities available to 401(k)-type plan options.  The Information Letter, however, does not authorize making private equity investments available for direct investment on a standalone basis.  

The Information Letter was developed by the Department of Labor’s Employee Benefits Security Administration (EBSA). EBSA’s mission is to ensure the security of the retirement, health, and other workplace-related benefits of American workers and their families.

The Information Letter will support ERISA plan fiduciaries’ prudent consideration of innovative retirement plan investment opportunities to help defined contribution plan participants achieve successful retirement outcomes through appropriately diversified investment options that provide strong investment returns.  “This letter should assure defined contribution plan fiduciaries that private equity may be part of a prudent investment mix and a way to enhance retirement savings and investment security for American workers,” said EBSA Acting Assistant Secretary Jeanne Klinefelter Wilson. The Information Letter is available at https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/information-letters/06-03-2020.

The Department of Labor’s mission is to foster, promote, and develop the welfare of the wage earners, job seekers, and retirees of the U.S.; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.