The Great Pension Fund Hoax
Nothing makes my blood boil quite so much as when investment firms lie to honest, hard-working people like you.
At last count, nearly 21 million Americans participated in a local or state pension plan.1
And most of these workers agreed to take less income than they might have made elsewhere, in exchange for attractive retirement options offered by the government.
Normally, I’d applaud this type of decision. We all know it’s smart to give up some spending now so that you have more saved for later.
The only problem is, state and local governments have been notorious for not setting aside enough money to cover the expense of paying these retirement benefits!
And the longer these governments act irresponsibly, the more dangerous the situation becomes…
Low Rates Are Making Pension Shortfalls Worse
As interest rates continue to trend lower, pension funding levels will continue to deteriorate.
That’s because with lower interest rates, it’s more difficult for pension plans to generate enough income to pay current and future retirees. After all, these pension funds are earning barely 1-2% on government debt.
Just look at the chart below. As key state pension plans adjust their models to account for lower returns, you can see that there’s not nearly enough money being set aside for retirees.
For example, the state of New York has just 45% of the funds it needs to fulfill its promises to retirees. So where is the rest of the money going to come from?
This irresponsibility is especially egregious when you consider where things are in the market right now.
For the last 10 years, stocks have been in a bull market. Corporate bonds and Treasury bonds have also performed very well over the last few years.
You would think that with such a favorable market environment, pension plans would have made great profits, leaving them flush with cash. But instead, state and local governments have spent money on other projects, essentially ignoring the responsibility they have to retirees like you.
Today, government workers are promised a reliable pension check when they retire. But in many cases that promise is a lie. Because there simply isn’t enough money available to pay for everyone’s retirement.
It’s clear that something further needs to be done.
It’s Time to Take Matters into Your Own Hands
Until the state and local governments behind these failing pension plans figure out how to either raise more money or pay out less to retirees, these pension funds are in dire straits.
And if you’re counting on a corporate pension plan or Social Security to fund your retirement, you may not be in much of a better spot! The fund that backs your Social Security payments is scheduled to go bankrupt in about 15 years. And many corporate pension plans are in the same position offering too many promises without the cash to back it up.
So regardless of who is “guaranteeing” you future retirement payments, you need to realize that you’re on your own when it comes to planning for your cash flow needs.
Well, sort of on your own…
The good news is that we here at St. Paul Research are hard at work finding ways for you to cut your expenses, boost your income, and live the comfortable retirement that you deserve.
One of the best ways to plan for your retirement today is to buy shares of reliable companies that pay dividends.
With interest rates falling, more investors are looking for ways to generate income from their savings. And that’s causing a lot of money to move out of bank savings accounts and into dividend stocks that pay higher yields.
This trend is just beginning. So if you invest now, ahead of the wave of new capital that is headed into these dividend stocks, you’ll be in a position to gain from the rush into these opportunities.
Over the next few months as more investors buy these stocks, it will naturally push prices higher. And if you’re holding these stocks ahead of time, the value of your investment will increase!
That puts you in an enviable position in a few months’ time, where you’ll be deciding whether to sell some of your stocks and lock in a great profit or keep these stocks and enjoy the reliable dividend payments for years to come. Not such a bad position to be in, right?
Of course, I’ll be keeping you posted on any opportunities we come across.
The key point today is that you need to take ownership of your retirement. Don’t count on the bogus pension fund or Social Security promises. There simply isn’t enough money for most of these promises to be met.
But if you are proactive today, you can still live the rich retirement that you’ve dreamed of.
Here’s to growing and protecting your wealth!