• Categories

Be your own pension fund

Think your future financial well-being is secure in your current pension fund?  Think again.

The Oct. 7 statement by Peter R. Orszag, Director, Committee on Education and Labor, U.S. House of Reps gave a not bright future,

“…The turmoil in financial markets has affected many aspects of the economy, including pensions. The most direct effect on pensions is through the prices of financial assets such as corporate equities and bonds. The Standard & Poor’s 500 stock market index, for example, has fallen by more than 25 percent over the past year as the outlook for the economy and corporate profits has worsened…Because the majority of pension assets are held in equities, drops in stock prices have had a significant adverse effect on pension plans…Data from the Federal Reserve suggest that the decline in the value of financial assets cost pension funds (private-sector and public-sector combined) roughly $1 trillion—almost 10 percent of their assets—from the second quarter of 2007 to the second quarter of 2008 (the latest period for which data are available), and there has been a significant further drop in asset prices since then….”

My favorite Retirement Planner newspaper columnist, Steve Butler, said in his column today, “…Letting companies go down the tubes [he was referencing the troubles of General Motors and other auto makers] saddles us taxpayers with the prospect of guaranteeing any under-funded defined benefit pension plans….”

In another example of pension plan woes, “…The Cincinnati Retirement System will face a nearly $1.8 billion shortfall in its pension obligations by 2013 if it makes no changes to retiree health care benefits and fails to increase the city’s annual contributions to the system….” according to an article today by Dan Monk, Business Courier of Cincinnati. 

I mention this because there is an option to feeling that you are entitled to a pension and being scared that it won’t be there for you, and/or feeling outraged that as a taxpayer you’ll have to help pay someone else’s pension plan shortfalls.  Instead, do something that is going to increase your income now and provide residual income…income that is the result of your efforts that continues whether you continue with those efforts or not once you’ve built it…sort of “build it and it will be there”  idea.

Of course I’m talking about starting a home-based business…choosing one with the potential for residual income.

But I’m too young!  Nonsense.  I happen to know of a high schooler  who, before he became 18, joined a network marketing company with his parents as co-owners until his majority [some states allow this and some network marketing companies allow this] and this young man graduated high school never having to worry about how he will pay for college…in fact he now has residual income – this will allow him to make non-financially dictated decisions about his future.

But I’m too old!  Nonsense.  I happen to know of a woman in her 80’s who is already bringing in several thousand dollars a month parttime.   You do not have to think that “retirement” means you retire from responsibility for your own financial wellness.

But I’m too busy!  Nonsense.  Most network marketing, or direct selling businesses can be started parttime.  I know of a couple who held meetings in their home once a week…only “worked” their business one night a week and now they do whatever they please…they have residual income…they were able to leave their employee situations.

But I don’t have any money!  Nonsense.  There are direct selling businesses you can start for $39.  Some for just a couple hundred.  There are ways to start with what you have, right where you are.

So, you ask…what is your point?  The media has us all afraid for our financial futures – especially us Baby Boomers.  The media asks: what if your pension plan ends up zip, nada, no more before you even have a chance to use it?  I ask: why in the world would you want to have your financial future rely on an entitlement?  [whether that is a pension fund or Social Security]  Why wouldn’t you do something now that will ensure your financial well-being that involves you providing it…and in the process helping others to do the same?

Think about it.

Add to FacebookAdd to NewsvineAdd to DiggAdd to Del.icio.usAdd to StumbleuponAdd to RedditAdd to BlinklistAdd to Ma.gnoliaAdd to TechnoratiAdd to Furl

Advertisements
%d bloggers like this: