The legendary Jim Sinclair sent an email alert to subscribers this afternoon warning that the US government will soon liquidate private 401k and IRA retirement accounts and force private retirement assets into treasury paper as no major buyers of treasury paper remain outside of the Federal Reserve.

Sinclair correctly notes that the practice has already occurred recently in several Western nations, and that investors can expect the same to occur in the US as the government runs out of funding options.

Sinclair recommends investors stop creating and funding retirement accounts at a minimum.

From Jim Sinclair:

There is one more serious problem with all retirement accounts above and beyond the Sentinel Ruling and the integrity of the custodian.


If a systemic failure and lower dollar causes an unwanted increase in interest rates in light of the Fed as the major consumer of treasury paper in the last 18 months, how would the US government fund itself? You can be certain that China and the Middle East are not coming to the rescue. 


One way would be to liquidate retirement accounts ($2 trillion USD) and put treasury paper into them to save the poor worker and coming retirees from loss as MSM and MOPE would say.


Look around the world at governments either eyeing retirement programs or invading them. You will find it is already happening.


Please, at a minimum, stop creating and funding them.



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  1. The IRS rules have made it nearly impossible to get out of these retirement scams. About the only way to get out is to quit ones job. With the real unemployment rate at around 23%, this is a really bad time to take that route and TPTB know this!

  2. Well, I solved the problem of worrying whether Uncle Sam will pilfer my 401k.  In 2008 we adopted a beautiful 2½ year old from Russia.  The whole process took more than four years and cost $50,000.  Just before we flew over there to bring her home (during the oil peak at $150/bbl), I emptied my 401k to pay for that.
    Yes, we got hit with the IRS penalty, but the adoption tax credit petty much made it a wash.
    Now, no retirement account is visible for THEM to steal – that’s the way to go – practice OPSEC to keep your savings invisible.

  3. I looked into this 2-3 years ago and the only way to get out of a 401k is to quit your job. I specifically looked to cash out of my Pension Plan but I believe it is impossible to get to. I wont have access to it till I reach 65 years old I believe. I pretend I dont even have it anymore. Is their anyway around this for a Pension Plan?

    • I rolled mine into a self directed IRA and bought PMs.
      If you don’t want to store it in their Govt regulated vaults you have to pay taxes as that year’s income.

  4. Borrow as much as possible from it and buy PM’s. There is a way out that someone posted on another site. Most plans allow payout in case of a financial emergency. I think this current economic climate would qualify. The other one I read was claim the 401k is in danger of collapse and ask to exit.

  5. Here is an idea.  If your boss is a decent sort sit down with him or her and outline what you know to be certain, that the markets are most certainly corrupt and house a considerable number of criminals.  Write a paper on this subject and present it to the boss, use facts and figures showing the losses of MFG, Peregrine and Sentinel, making it clear that banksters or brokerage house can steal clients fund with impunity.
    It is absolutely certain that your employer has his or her entire 401k invested as well, and presumably with a much larger amount than your plan easily topping out at $300-900,000.   If the boss has a reasonable amount of sense and real money at risk point out the Gillarduci plan for 401k’s, they will see your point and realize that their retirement plan is at risk, as is the entire structure of the 401k program offered by the company.Most company owners are fiscally and politically conservative. They realize that over the last 4 years the government has not been their friend. With a statement like ‘You didn’t build that, someone else did’ still ringing in their ears, the notion that the government would gladly expropriate their retirement funds should not seem to outlandish. It’s happened in 9 countries to date.
      Many firms are making contributions to that plan, matching yours, so it’s clear that the boss’s money is flowing into the  casino sewer just as your is. Once you open up and expose this potential for problems, you might end up being the working class hero to the company. If this does not cause him concern; does not feel like a shape stick in the eye, prompting the boss to take action, then you may be working for the wrong company. A boss so unenlightened that he can’t see this for what it is, may not be a good boss.
    Good solid stable growing profitable firms offer 401k programs to attract and retain top flight employees. This new option would be a good alternative to complete loss of principal.
    If you can get your boss to allow employees to remove themselves from harm’s way as a prudent wealth saver, you may do a huge favor to everyone in the firm.  You may even be so successful that you can starta business specifically set up to help people rotate out of a 401k.
    If you have a balance of a sufficient size that the impending destruction of your plan by the Federal government places your wealth at serious risk, you may need to quit. But before you do that, ask your boss if you can take an unpaid leave or a temporary resignation that allows you the needed time to remove your plan from the trustees.  If your boss values your service and is a big enough person to see your point, then you might be able to effect this plan and still retain your job. 
    You may find that in the short time period you even find another better job or gather up sufficient capital to start your  own small business. 
    Staying with the 401k extaction paradigm is not always the best plan. There are other ways and I am sure that other readers will have suggestions as to how to pull this plan off.

  6. D-Gore  Regarding your comments about having to pay taxes if you don’t store your phyzz in ‘gov’t regulated vaults, I would disagree with that requirements.  In the enormous amount of research that Doc did in setting up SDIRA, he found a part of the IRA regulation that speaks to how one holds their gold and silver IRA. I did 6 months of solid research into that subject as well.
    If you use the LLC aspect of of creating an SDIRA you can store your IRA phyzz within your own home, secure storage or safe deposit box.  That portion of the regulation that references the storage option makes it clear that you can hold your IRA if it shares qualities similar to that of a safe deposit box or outside bullion vault. 
    I formed an SDIRA with LLCs for my IRA and my wife’s as well and selected a stand alone safe to store these assets, separated from any other assets.  It is by this regulation and its reference to storage that allows me to hold my precious metals outside of a bullion bank or other self described and self serving government regulated vault.
    My opinion is that if you  don’t hold it you don’t own it.  Several reputable essayists including Jim Willie, Jim Sinclair, Ann Barnhardt and others have made the clear reference to theft from bullion banks, allocated accounts, safe harbor safe deposit boxes and other off site locations.  Those include Switzerland, Australia and Italy.  These are proven thefts of an owner’s allocated bullion. These exchanges don’t even fall the the low level of the MF Global theft of hundreds of millions in customers silver either.
    If I had to chose between paying the taxes for a ‘preferred’ and approved safe location, bullion bank, safe deposit box or my own home, I would close the latter. Rest assured I am immensely more comfortable that I chose my home than any third party who purports to be a safe place to store phyzz.
    Fortunately I’ve found by my research that home safe holdings fits the IRS rules. My CPA concurs as does the IRA custodian that administers the very small core  remaining assets of my IRA as well as the bank which handles our IRA accounts.  Having vetted this plan from four sources I am comfortable that the IRS will not question this motivation and plan.

  7. Well, I sure hope that JS is wrong about that.  I would hate for the government to cause a civil war to erupt in this country because they were so stupid and so greedy as to grab that which is not theirs but OURS!

    If they did do this and somehow miraculously avoided being hung from lamp posts, it is a virtual certainty that they would also implement withdrawal limits.  If they didn’t, a lot of us would just withdraw the IRA money, pay the tax, and be done with the bastards.  Come to think of it, that IS looking better by the minute.

  8. We certainly need to listen to what Jim Sinclair says – I would not have believed it would come to this 18 months ago – but – I also didn’t think the Fed would move to Open-Ended monitization of the debt and QE 18 months ago either. We live is crazy times and Sinclair has been spooky accurate with his predictions. Pay heed.

  9. I’m glad that I learned about buying physical gold and silver way before I even started to work which means that I don’t need to worry about retiring right now. Or else, if I never learned about the fundamental of gold and silver, I would keep all my dollars in my bank account.

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