DJT allows private equity to raid 401Ks and IRAs

[KentuckyWoman]

Like Lambs to the Slaughter

"Private equity firms will now be allowed to access—and skim fees off of—the $9 trillion in 100 million workers' 401(k) plans and IRAs."

With the American public's attention consumed by the Covid-19 pandemic and mass protests against police brutality, the U.S. Labor Department earlier this month quietly gave corporate sponsors of retirement plans something they've been agitating over for years: a government green light to invest workers' savings into funds managed by notoriously predatory private equity firms.

The move, announced on June 3 by Labor Secretary Eugene Scalia, allows large managers of 401(k) plans and individual retirement accounts (IRAs) to put workers' retirement savings into private equity investments that offer the possibility of huge returns—and devastating losses.

Now that Trump's Labor Department has opened the floodgates a lot more money could end up flowing into these opaque deals, enriching private equity executives and their friends—while leaving workers' meager retirement savings even further depleted."
—David Sirota

"Department of Labor watchdogs just opened the door for private equity wolves to sell the highest cost, highest risk, most secretive investments ever devised by Wall Street to 401(k) plan sponsors."
—Edward Siedle, Forbes

More at the links

[Baitball Blogger]

1. Can anyone define what a private equity firm is?

With examples?

[Turbineguy]

2. Bain Capital

Romney's combine harvester of ordinary peoples' pension funds comes to mind.

[Alex4Martinez]

3. Private equity firms raise funds from institutions and wealthy individuals and then invests it.

Private equity firms raise funds from institutions and wealthy individuals and then invest that money in buying and selling businesses. After raising a specified amount, a fund will close to new investors; each fund is liquidated, selling all its businesses, within a preset time frame, usually no more than ten years.

When dealing with our 401Ks and pension funds, it's like fish in a barrel, no oversight.

https://en.wikipedia.org/wiki/Private_equity_firm

[dickthegrouch]

4. Not if. We all call our 401k administrators

And tell them not to invest our funds that way

Deny them permission!!

[Ferrets are Cool]

5. Well, shit.

[Hoyt]

6. I've never seen a 401K where one can't choose at least one conservative/safe

investment vehicle. I think most people, except the well to do, have the sense not to select a private equity fund. I don’t think this is a big deal.

[uncle ray]

7. with the current "lifestyle" and years to retirement plans, people don't pay attention.

[roamer65]

8. Not if the federal government gets to them first.

I am expecting soon that the federal government will mandate 401k participants to invest into funds that own and actively purchase US treasuries.

That how u fund all the deficit spending. Literally through confiscation.