An Investment Management Company
You Pushed the SAD Button!!
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Here is the unvarnished truth. Social Security was originally designed to keep people from
starving to death. It wasn't designed to give you a comfortable retirement -- not by a long
shot. Look at your Social Security Statement. It states: "Social Security was never intended
to be your only source of income when you retire. You also will need other savings,
investments, pensions, or retirement accounts to make sure you have enough money to live
comfortably when you retire."
Social Security was designed as a classic Ponzi Scheme. The money was never put in a
"trust fund" and invested for you. They simply took the money of those who were working
and gave it to those who were retired. I can remember discussing this issue in the early
1980's in college. Not much has changed except we're getting very close to the date at
which the outflow exceeds the inflow - the "end game" for a Ponzi Scheme.
Even the government admits to this problem. Your Social Security Statements says: "The
Social Security system is facing serious financial problems.... In 2017 we will begin paying
more in benefits than we collect in taxes."
Even if Social Security could be relied upon it will not amount to a hill of beans for most
people. Can you live on $1,000 a month and claim to "enjoy" your retirement? You'd better
come up with a whole lot more than Social Security if you want to have some dignity in
retirement.
OK, what about my retirement from ACME Enterprises (insert the name of your company).
Well, there are two types of retirement programs funded by companies. In the old days we
had Defined Benefit Plans. These were great. The company set aside x-amount of money
in an investment account for you for each year you worked. They had a formula for how
much you would receive at retirement based on how much you earned as an employee, how
long you worked, how old you were when you decided to retire, etc. So when you retired,
presto, out popped your retirement funds -- unless of course they underfunded the
retirement account or they got into financial difficulty, etc. These problems occurred often
and resulted in lots of very disappointed people.
These underfunded Defined Benefit retirement accounts have become an albatross for
many legacy companies. As a result, few provide such generous retirement offerings.
Companies now confine their retirement benefits to Defined Contribution Plans and/or Stock
Options. With this new scenario the company sets up a 401k or similar tax-deferred
retirement program and they contribute a set amount toward it. It's up to YOU then to
choose the investments and make sure they're enough to reach your retirement goals. In
other words, you're on your own, buddy.
The bottom line is -- and always has been -- nobody is going to take care of you. There is
no free lunch. Life sucks and then you die. Sorry to be so tough on you, but somebody had
to say it.
Ready to go back and face the music? OK, just push the BIG NUMBER button at the bottom
and it will return you to where you were -- and nobody will need to know you ever pushed
the RED button -- our little secret.
BIG NUMBER BUTTON
starving to death. It wasn't designed to give you a comfortable retirement -- not by a long
shot. Look at your Social Security Statement. It states: "Social Security was never intended
to be your only source of income when you retire. You also will need other savings,
investments, pensions, or retirement accounts to make sure you have enough money to live
comfortably when you retire."
Social Security was designed as a classic Ponzi Scheme. The money was never put in a
"trust fund" and invested for you. They simply took the money of those who were working
and gave it to those who were retired. I can remember discussing this issue in the early
1980's in college. Not much has changed except we're getting very close to the date at
which the outflow exceeds the inflow - the "end game" for a Ponzi Scheme.
Even the government admits to this problem. Your Social Security Statements says: "The
Social Security system is facing serious financial problems.... In 2017 we will begin paying
more in benefits than we collect in taxes."
Even if Social Security could be relied upon it will not amount to a hill of beans for most
people. Can you live on $1,000 a month and claim to "enjoy" your retirement? You'd better
come up with a whole lot more than Social Security if you want to have some dignity in
retirement.
OK, what about my retirement from ACME Enterprises (insert the name of your company).
Well, there are two types of retirement programs funded by companies. In the old days we
had Defined Benefit Plans. These were great. The company set aside x-amount of money
in an investment account for you for each year you worked. They had a formula for how
much you would receive at retirement based on how much you earned as an employee, how
long you worked, how old you were when you decided to retire, etc. So when you retired,
presto, out popped your retirement funds -- unless of course they underfunded the
retirement account or they got into financial difficulty, etc. These problems occurred often
and resulted in lots of very disappointed people.
These underfunded Defined Benefit retirement accounts have become an albatross for
many legacy companies. As a result, few provide such generous retirement offerings.
Companies now confine their retirement benefits to Defined Contribution Plans and/or Stock
Options. With this new scenario the company sets up a 401k or similar tax-deferred
retirement program and they contribute a set amount toward it. It's up to YOU then to
choose the investments and make sure they're enough to reach your retirement goals. In
other words, you're on your own, buddy.
The bottom line is -- and always has been -- nobody is going to take care of you. There is
no free lunch. Life sucks and then you die. Sorry to be so tough on you, but somebody had
to say it.
Ready to go back and face the music? OK, just push the BIG NUMBER button at the bottom
and it will return you to where you were -- and nobody will need to know you ever pushed
the RED button -- our little secret.
BIG NUMBER BUTTON
| The advice contained within this website is general in nature, only for the use of FI Investments clients, and should not be relied upon without first consulting with FI Investments. |