Court of Broken Promises
Most of us on the reunion committee were smokers at one time… some, heavy smokers. Yet we all finally looked at the facts and weaned ourselves off our cancer-causing addiction. Unfortunately, politicians will never do the same with their spending addiction. We’ve heard countless speeches about unsustainable spending, and yet no matter who is in office, these fiscal cancers continue to grow.
Our governments are broke: cities, states, and the federal government. Detroit’s plight is just the first of many ugly endings. Government pensions are not safe, and no one relying on them will be immune to the fallout. At that point, complaining will be futile. When cupboards are bare and there is no money left, it’s too late to prepare for the problem.
Just like the private sector, government pension promises will be broken. Sure, politicians might feel badly about their broken promises, but that won’t keep former firemen, teachers, or other retired government workers with roofs over their heads and food in their bellies.
Bankruptcy court is the “court of broken promises.” In theory, it’s an orderly way to fight over the scraps of a carcass. But at the end of the day, scraps are all that’s left. It’s sad to say, but many pensioners will find themselves in that fight, with few other resources to fall back on.
How to Come Out Ahead
While others fight over the scraps, pensioners—actually, everyone approaching retirement—can take concrete steps to protect themselves. So where should we start?
- Accept the fact we cannot rely on anyone else to help us. Fretting over the injustice of it all is wasted energy.
- Get out of debt.
- Take an inventory of our assets.
- Learn how to safely build a nest egg in turbulent times.
- Position assets to minimize potential government confiscation.
- Diversify assets for additional protection.
- Seek out investment bargains. While others are fighting with the government over scraps, we should be looking for opportunities.
Fiscal cancer is not a communicable disease unless we allow it to be. While we may not be able to protect others from destruction, we can certainly protect ourselves. As Doug Casey has said many times, we are all going to get hurt; we just want to keep our share to a minimum.
The total of the US government’s unfunded liabilities currently stands at $86.8 trillion, or 550% of GDP. Will this be the death of retirement in America, and what can you do to escape poverty in your old age? It’s time to take charge of your retirement—without waiting for the Fed to do it for you.
Learn to read between the lines of the constant speechifying coming from Bernanke and, soon, Janet Yellen. Or, you can let us show you how to take charge of your retirement.. My team and I make it our mission to share the best investing advice for retirees or soon-to-be-retirees, no matter what happens to pensions and Social Security in the future.
Click here to read more about how to take charge today, and discover the best financial strategies and investments to get the retirement you deserve.
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