Gone are the days where you can sit back…no nothing about the stock market and let your company and government take care of you in retirement.
No, corporate and state pension funds are getting entirely too risky with your “present” and your future. And guess who it costs? YOU!
State governments from coast to coast have run up estimated pension fund losses of $865 billion dollars (that’s right, with a “B” and not an “M). Yeah, assets for 109 state funds have declined an average of 37% over the last 14 months. Ouch! (Got a question for Sean? Email him here: shyman@mywealth.com)
Now cities like
20 million American jobs affected because of a few “gamblers” screwing up!
Think you may not be affected? Well, these 109 state funds cover over 20 million people. So if it misses you…it won’t miss someone you know, that’s for sure. Either way, it shows everyone that we need to take control of our own futures and not blindly follow the government or corporations to take care of us in retirement…it’s up to us!
The state of
So now, if you work for their state you will need to work three more years than you used to have to in order to retire. Why do you have to put in 3 years? Because a small group of people got too risky with the “nest egg” that the state had for you!
Oh by the way, their pay increases are capped now too. Pay increases used to keep pace with inflation (being tied to the CPI index which grows at an average of 3% a year). However, now they will only get pay raises of 1.5%. That means that their money is slowly eroding away as it will no longer keep pace with inflation. That means they slowly get “more poor” gradually each year. Do they deserve that? No! But someone screwed up and so the “little guy” is the one that pays for their mess ups.
If you think this is an isolated instance, the state of
So if you think you are “safe” because you work for the government in some capacity, you may be one of the ones most “at risk”. In fact, government pensions cost about 3 times that of private pensions. So they are plagued with tons of costs that they have to fight. It’s not a pretty picture for these guys.
It’s time to take charge of your own future and not entrust it solely to the government or your corporation!
What does this tell us whether we work for the government or not? It tells us that we need to “take charge” of our own future and not place it into the hands of someone else. There’s no one out there that cares as much about your money as you do. No one will watch over it better than you will. Why? Because you have the “sweat equity” involved with it and they don’t.
This is why I’ve taken on the task of educating people all over the nation. I want everyone in
Formerly, this has just been reserved for the “elite” since that’s all Wall Street seems to want to deal with.
Therefore, someone has to stand up for the every day people out there. That’s the gap that we fill.
So get educated….take charge of your own personal finances and investing and don’t leave it to someone else. For each time we get “lax” and leave it to others, they simply fail us. Therefore, we have to realize we live in a different day and that day is a day in which we have to proactively take charge of our future if we want to ensure that we’ll have an adequate retirement and that no one’s gambled with our nest egg!
Sean Hyman
Head Instructor
www.mywealth.com
10 Comments:
It won't be long before Joe Public wakes up and realizes they can not rely on Government to provide a good standard of living. The media is making a huge deal fo the $50 billion dollar Ponzi Scheme Madoff was running yet make no mention of the $8trillion dollar one the government runs.
The government tries to do good but can not limit the unintended consequences of their actions.
What about the medicare and medicaid? $40 trillion plus in unfunded liabilities.
Now, we have a federal reserve who prints money and the treasury who allows it. Government spending will not save us.
Yep, I agree...think about the biggest Ponzi scheme....you have to pay into Social Security...mandated...the government taps the funds for purposes other than our retirements/security...and who's left holding the bag? You and I.
Not making light of Madoff...but the government is worse. It's just that they "are" the law ...so they'll never get prosecuted for spending our mandated payments that should have gone for our future.
$8 Trillion makes $50billion look like chump change!
Don't worry, Obama will save us.
ha-ha! Will be interesting to see how it all unfolds.
We definitely live in interesting times for sure.
Market Spec,
Instead of childishly saying "Don't worry, Obama will save us", why not be more constructive and helpful?
What can be done to fix things? What?
Releasing the rest of the TARP and letting Bernanke get creative ..plus the additional stimulus package can all help in the short term.
However, time will be the real healer. Over time, the low global interest rates from around the world and the money that they've all pumped into their economies will eventually help...also the ultra-low gas prices may be icing on the cake.
Unfortunately, they're going to have to help the banks with their crappy balance sheets with all of the "junk" that they're holding. That will help to "unclog" the pipes and get money to flowing a bit once again.
Ultimately, the sad thing is that since the world essentially over-leveraged and is going through a "deleveraging" process....someone has to lever up in order for everyone else to "lever down". Well the central banks of the world have been the ones that have had to do this. The question is...once that's all done...how will it all fare from there?
I've never seen central banks have to go out there to this degree all at once and all around the world. Will be interesting to see what the next chapter holds.
TG,
I have made it clear many times here what needs to be done...but quickly...
1. Repeal the Federal Reserve Act of 1913. The US Constitution specifically states the Congress is to oversee money backed by gold and silver.
2. Back the US Dollar with precious metals: Gold, Silver, Platinum
3. Reduce foreign aid by 50% We currently spend $1 Trillion a year in foreign aid
4. Reduce foreign military bases (700 bases in 130 countries is too costly to maintain.)
The more the government prints money the more it debases the currency...and if the world loses confidence in the dollar then we'll have a run on our currency.
btw - that is for starters...there is more we can do but I am unsure if Americans are willing to start for real change.
This is really a massive problem as I see it: The more the government prints money the more it debases the currency...and if the world loses confidence in the dollar then we'll have a run on our currency.
I agree with that. It's one reason why I'm looking for the dollar to eventually plummet once again once this "risk aversion" play is over.
Market Spec,
Those are some terrific points.
Why do you not post them?
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