With Hillary Clinton losing the Guaranteed Retirement Account Proposal (GRAP) likely went down with her.
Here is why that’s a good thing…
- GRAP is essentially Social Security were it to operate as a pension plan (rather than the income transfer mechanism it morphed into) and it is likely to be similarly compromised.
- Investment advisers and insurance companies selected by a political bureaucracy for a captive market will not make the market efficient thought they will create an attractive campaign donor base.
- Ending tax breaks for 401(k)s and IRAs would drive a lot of other investment advisers and TPA firms out of business.
Admittedly the private retirement system is failing. Whereas many retirees used to count on dependable defined benefit pensions to retire on where substantial benefits had to be provided to rank-and-file employees if the principals wanted big benefits for themselves we now have perverted rules of fairness institutionalized where vast armies of younger, lower-paid workers are being grudgingly ceded only token benefits.
The solution is not to add onto the pile but to understand what is going on out there now and honestly represent it to the people you are supposed to be looking out for or else you get more of this.