2012年2月15日水曜日

Bankruptcy, How It Effects Retirement And 401k Plans

bankruptcy, how it effects retirement and 401k plans

The Fed's Plan to Bankrupt You and Me

Saving for retirement?  The Fed has just promised to set you back.  According to Forbes magazine, in a statement after last week's Federal Open Market Committee meeting, they announced plans to devalue the dollar by 33% over the next 20 years.  That means if you intend to retire in 20 years (or live 20 years after retiring this year), you need to get well over 40% yield on your money just to grow your savings a little.  Under their plan, a dollar in 2032 will buy at least 33% less in 2032 than this year.

That's if they don't exceed their 2% inflation goal, and they are wildly wrong at that number.  The real inflation rate is closer to 12%, if you include food and energy, and calculate the number the way it was originally calculated.   This is something I write about regularly, here for example.  Borepatch did the same today.  Why do they want 2% inflation?  Quoth the oracles:


"The Federal Open Market Committee (FOMC) judges that inflation at the rate of 2 percent (as measured by the annual change in the price index for personal consumption expenditures, or PCE) is most consistent over the longer run with the Federal Reserve's mandate for price stability and maximum employment. Over time, a higher inflation rate would reduce the public's ability to make accurate longer-term economic and financial decisions. On the other hand, a lower inflation rate would be associated with an elevated probability of falling into deflation, which means prices and perhaps wages, on average, are falling–a phenomenon associated with very weak economic conditions. Having at least a small level of inflation makes it less likely that the economy will experience harmful deflation if economic conditions weaken.
 The FOMC implements monetary policy to help maintain an inflation rate of 2 percent over the medium term."
This inflation rate has already sapped most of the value out of the dollar.  Over at Washington's Blog, there are a couple of plots of the decrease in the value of the dollar.  We've done it here, too, and you can see some charts I constructed in my article: could we return to a gold standard in the US.  
By coincidence, I'm reading Robert Kiyosaki's latest book "Unfair Advantage" and this is one of his main topics.  The "debt is money" system is set up to destroy savers.  He says if you're going to save, don't save dollars: save gold and silver.  The only asset in the last decade to come close to matching the yields we need is the precious metals.  Forget the idea of buying and holding stocks in a 401k.  That ship wrecked and is in pieces on the rocks.
 

Savings?  Give me a break!  The Banks that run America (Goldman Sachs, JP Morgan) have demanded an end to zero interest.  They want negative interest!  They demand that you pay them for the privilege of buying bonds. Forget getting a return on investment.  In the quote of the day,  commenter Chuck Bone on that Zerohedge article says,



These are our most popular posts: bankruptcy, how it effects retirement and 401k plans

Emily W. McBurney: How American Airlines Bankruptcy May Affect ...

But all retirees, workers, and people going through a divorce should pay attention to that bit of news, because it could affect your divorce and your retirement. How? When a company declares bankruptcy, its pension plan is ... read more

Will Bankruptcy Affect My Retirement Plan?

Riverside Bankruptcy Attorneys – Many of the people who come into our Riverside bankruptcy law practice are worried how a Chapter 7 or Chapter 13 bankruptcy will affect their retirement money. They might have money in a 401k plan, ... read more

Do you think youre facing a w…

You ought to find a attorney at law who can reply any query you could have regarding the whole assumption behind personal bankruptcy and just how it could affect you. Choosing a proper ... Will youre free to maintain your 401k approach. Globally talking, your retirement account for instance 401(nited kingdom) or IRA is protected through the debt collectors under most situations considering that they may be considered exempt resources. Having said that, you can ... read more

The Silicon Graybeard: The Feds Plan to Bankrupt You and Me

The Feds Plan to Bankrupt You and Me. Saving for retirement? The Fed has just promised to set you back. According to Forbes magazine, in a statement after last weeks Federal Open Market Committee meeting, they announced plans to devalue ... Getting out of the 401k is a smart thing to do if your account doesnt allow you to put money where youd like to. .... For the last three years, the entire western world has been reeling in the after-effects of the crash of 2008. read more

Related Posts



0 コメント:

コメントを投稿