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Listen folks, I hate to tell you this but your chance for a comfortable retirement is falling fast!
Of course, we already know pension plans have been raided, depleted, and "financially engineered" – against the laws that were supposed to protect you.
And if you think you're protected because you're a union worker, or municipal worker, or in some other job that you figured you'd put up with because you could retire well… well, those "protection" plans are all under attack, too.
Your benefits are being bargained away… and so are your cost of living increases and so are all the other promises you were made.
You need to wake up to your worst nightmare.
Of course, your 401(k) was invented to replace pension plans… but have you really looked at how it's doing? I mean really calculated how you're going to retire on it?
The Center for Retirement Research said the typical 401(k) in the United States has about $120,000 in it. Do you even have that much?
They also calculated that to retire comfortably you need 10 times what your retirement year's salary was in savings. How much are you making now? Are you going to save 10 times that?
And as far as your employer matching your 401(k) to help you amass that retirement stockpile, forget it.
Newsflash: Companies aren't required to match anything. They only do it to entice employees to come on board or stay. That is until it costs them too much. After the 2008 crisis, 20% of public companies suspended, delayed, or stopped matching contributions altogether. This is a travesty for the average worker.
You see, your comfortable retirement is a long way off in the best of circumstances.
Today, just to have a decent retirement pot, you'd have to make 6% a year, compounded, every year. Are you making that every year on your investments?
No. Especially if you're moving more money into fixed income at these piddling interest rates. Two percent a year on a 10-year savings bond, really? Good luck with that.
Here's the thing:
About the Author
Shah Gilani is the Event Trading Specialist for Money Map Press. In Zenith Trading Circle Shah reveals the worst companies in the markets - right from his coveted Bankruptcy Almanac - and how readers can trade them over and over again for huge gains. He also writes our most talked-about publication, Wall Street Insights & Indictments, where he reveals how Wall Street's high-stakes game is really played.