Exodus 20:15 – “Thou shalt not steal”
Heads Up: 401(K) Savings To Go In ESG Funds
Several states took notice, when they learned a new rule was set up to allow 401(K) savings to go in ESG (environmental, social, and governance) funds.
.A Department of Labor (DOL) rule that affects millions of retirement accounts, is really what this is about.
The new rule set to take effect on Jan. 30 allows 401(k) managers to invest clients (your) money in ESG funds.
Lawsuits are underway because the rule puts at risk the retirement savings accounts of 152 million workers, or two-thirds of the U.S. population, totaling $12 trillion in assets.
The lawsuit also contends that the high court directly tied the term “benefits” to “income” and doesn’t cover nonpecuniary benefits.
When you dig deeper, ESG investment strategies are not designed to maximize financial returns for clients.
ERISA is in place to safeguard American workers’ retirement savings.
People work hard for their money, who in their right minds want to work for nothing?
If I put my money into a retirement account? I hope it’s there when I need it.
Conclusion
The 25 states participating in the lawsuit are Alabama, Alaska, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Dakota, Ohio, South Carolina, Tennessee, Texas, Utah, Virginia, West Virginia, and Wyoming.
The states argue that the new rule will lead to a decrease in specific tax revenue from retirement distributions.
ESG funds generally invest in companies that oppose fossil fuels, support unionization, and stress gender and racial diversity over merit.
It’s easy to see that hard-working American retirement savings are at risk.
The new rule doesn’t provide any definition or advice on what constitutes an ESG factor.
Instead of focusing on an investment’s risk and return, a fund manager could consider the economic effects of climate change.
Obama talked about this in 2009 saying most people are too cautious with their 401k and IRA investing strategies and that the government could get them better returns.
What if the government uses the poor performance of these funds to seize that 12 Trillion dollars and run it themselves?
I mean it must be really tempting to see Trillions of dollars in other people’s money just languishing in private accounts?
It’s a way to keep people separated from their money. Taxes are higher than when you contributed (401(K).
Let’s be honest, 401(K) function like a piggy bank.
As always, keep Yahweh first, stay free, pay down your debt and prepare. Shalom.
DISCLAIMER: I am not a financial adviser. This site is for educational purposes only. It is imperative that you do your own research. I am sharing my opinion from personal research and experience with no guarantee of gains or losses on investments, finance etc.
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