Mark D. Goldstein, CFP®
Certified Financial Planner
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"Guaranteed SAFE-Money Solutions for a Successful Retirement!"
My friends, allow me to cut to the chase. There's a HUGE financial black hole that hardly anyone seems to be discussing. And its size makes the Global Financial Crisis look like a drop in the bucket.
In fact, this financial hole has the potential to crash markets and make the 25-year recovery period after the 1929 crash (that started the Great Depression) seem like child's play.
So, what's this black hole that's causing Mark to sound like a madman, you wonder?
(Recent) History Lesson. In order to avoid a total financial system meltdown because of the Global Financial Crisis, governments around the world pretty much gave carte blanche to central banks to try to dig the developed world out of its hole. And these doggone central banks have spent years pumping enormous sums of money into their economies. They've kept interest rates at or near zero... and, in many cases, below zero (negative interest rates)!
In other words, a Bizarro World in which saving has been punished... and debt has been encouraged!
But it's not just the low savings rates and the high levels of personal debt that's the real major issue today. Like I mentioned above, the most dangerous financial black hole that's been growing "under the radar" is public pensions.
Look, haven't we all been promised an income in retirement that will allow us to live the last 30+ years of our lives in relative comfort and financial security?
Well, what if that security rug is about to be pulled out from under your feet?
It's no big mystery that governments haven't been funding state and federal public pensions the way they should have. And many of those that did, have squandered their funds. Even where public workers have been expected to contribute toward their lucrative pensions, governments have stolen that money to give life-support to a terminally ill and broken financial system.
Bottom Line. There is NO money in the public pensions pot. It's an illusion, you guys... smoke and mirrors... based on the ability of current taxpayers to fund current and future pension payments. It's called "Pay-As-You-Go"... essentially a Madoff-like Ponzi
scheme, truth be told.
The problem is, as the world's population gets older and older, there are fewer and fewer taxpayers paying into the system and more and more pensioners taking out!
Here's the Formula: Fewer people paying in + more people taking out = UNSUSTAINABLE.
Making matters worse, in addition to this aging population time-bomb, we've got the double-whammy of politicians focused on cutting personal and corporate taxes in order to suck up to voters and hang on to their jobs.
Still, there are some things that governments could do to avert this impending disaster. But don't hold your breath, folks, because every single one of them would be a colossal voter loser.
They won't raise the retirement age in line with increasing longevity. They won't raise taxes. They won't cut spending in order to build-up pension reserves. They won't force workers to put aside enough money for their retirement. They won't, they won't, they won't, etc., etc.
If you're a police officer, a firefighter, a teacher, etc., you absolutely want what you were promised, and rightfully so. But you probably won't get it, and that's just basic math and simple reality. Governments and taxpayers just don't have that kind of money.
Reality Check. Now is the time to accept that fact and make alternative plans!
I'm already seeing retirees taking dramatic actions to protect their finances in retirement. They're selling risky investments and tapping equity from their homes. These strategies will become more common... placing DOWNWARD pressure on investment markets.
If I'm right, your current financial plans may not protect you from a poorer retirement. And it's up to YOU to take control of your future TODAY.
Here are four things to consider doing now...
1. Reduce and eliminate all debt.
2. Discipline yourself to save first and spend last.
3. Prepare to work longer.
4. Learn about SAFER and more innovative ways to invest for retirement.
And, of course, stay tuned for these weekly emails. As always, my mission is to help you increase and protect your wealth... no matter what happens!