Are Washington Politicians Plotting To Steal Your
          Retirement Funds?
          
          
               There is currently a political controversy raging
          in the United States as to whether the government will
          tap into pension funds to meet revenue needs.  This
          issue arises from statements made by top level
          officials of the Clinton administration, and deserves
          particular attention because of the source.
          
               Investor's Business Daily, in a page one story on
          June 10, 1993, said "The Clinton Administration is
          eyeing the nation's pension funds as a potential source
          of revenue for its more ambitious social programs," and
          supported it with the following quotations:
          
               * Alicia Munnell, Assistant Secretary of the
          Treasury for Economic Policy has suggested a 15% tax on
          pension assets.  In her book Economics of Private
          Pensions, she suggests the government should tax the
          accumulated value of retirement accounts as personal
          income.  Her goal is a mandatory government retirement
          program where private pensions and social security are
          lumped together, or in other words, the nationalization
          of your retirement benefits.
          
               * Federico Pena, Secretary of Transportation said,
          "I think there are opportunities where pension funds
          can be accessed for the public good."
          
               * Two cabinet secretaries also support "using"
          pension assets for infrastructure and low-income
          housing.
          
               * In the campaign, Clinton proposed "leveraging"
          pension funds to pay for his "Rebuild America Fund."
          
               These are warning signals to be taken seriously,
          since such comments from top-level officials in any
          administration are often "trial balloons" to see what
          kind of reaction there will be to a proposal before it
          becomes an official policy or position.
          
               Whether or not there is an attempt to modify or
          take control of private pensions, prudence dictates
          diversification of your pension money.  This most
          important part of your nest egg should not be the most
          vulnerable part of your assets.
          
               There is nothing to lose by diversifying your
          pension plan, and all of the advantages that apply to
          diversifying your other investments apply to this money
          also.  But unlike your other assets, there is an
          additional risk by not diversifying, since the forced
          investment of a percentage of pension assets in
          "politically favored investments" such as long-term
          government bonds or low-income housing mortgages could
          hurt your fund with little or no warning.
          
               Will the coming pension theft strike overnight
          through a financial crisis or will the government
          continue to slowly consume your benefits through more
          taxes, penalties, and controls?  
          
               With four trillion dollars in U.S. retirement
          funds, the temptation is much too great for Congress
          and the Clinton Administration to overlook these funds
          in their desperate search for revenue to fund the
          deficit and social programs.
          
               Remember the political promises concerning tax
          deductible IRA's, real estate tax shelters, capital
          gains, a 20% top income tax rate, and untaxed social
          security benefits.  All of those changed within a few
          years.
          
               If you wait until the general public "wakes up"
          and discovers the pension attack, it will be too late. 
          The coming tidal wave of plan terminations and
          withdrawals will force the Treasury to slam the door
          shut, with tax penalties and restrictions effectively
          confiscating much of your benefits.