Interesting. Pensions are dead. The Social Security Ponzi scheme is “underfunded” (i.e., a polite way to say broke).
What does one do?
Accumulate 2M$!
Yes, you read it correctly.
$2,000,000
An investment portfolio of of 2M$ at 5% would throw off an annual income of $100,000.
There’s your “pension”.
Was much easier in the old days. The ancient history days of large stable enterprises like IBM and AT&T where one would go and spend a career. Work for forty plus years and leave at 65 with a gold watch and monthly check tht made a comfortable retirement.
Now only politician and bureaucrats have that. They’ve voted it for themselves at the taxpayers expense. (Unfortunately, the joke’s on them. Who will pay the taxes to pay these gold plated pensions? The taxpayers as broke as the gooferment.)
And, don’t be fooled by insurance company annuities. They just take your money for a promise to send you a monthly check. Madoff was a Ponzi. But, don’t think these “insurance companies” are any better than AIG or any Wall Street Financial Firm.
So, you take your 2M$ and invest to diversify getting your 5%.
For those of you who are aggressive savers and entrepreneurs: go for 10M$.
That’s the land of critical mass that Bob Brinker the financial radio show host talks about.
With 10M$, you have have a five year CD ladder with 2M$ in each “rung”, and get your 100K without ever thinking about it. By diversification, you can have it all FDIC insured. That’s about as close to rock solid as one can get.
Now, you may not get to 10m$, unless you’re entrepreneurial. You may not get to 2M$ unless you save your fool head off.
But that doesn’t absolve you from the consequences of not doing your financial planning.
You can only depend upon yourself.
Remember the new sucess formula is:
(1) ruthless financial discipline — no bad debt;
(2) a life long interest in learning — education — a degree — they can’t take it away from you;
(3) a white collar job in order to save big bux;
(4) a blue collar skill for hard times — never saw a poor plumber;
(5) one or more internet based businesses — your store is always open;
(6) a free time hobby that generates income; and
(7) a large will-maintained network of people who can “help” you.
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Reinke Faces Life 