Friday, August 27, 2010

Teacher Pensions Plans - $93 Billion Underfunded

Over the past year or so, I have been teaching in my educational workshops that private and government pensions are going away. Here is just the latest example of how this prediction is manifesting itself.
In a study published in April, the Manhattan Institute for Policy Research found that the 59 pension plans that cover most teachers in the United States are underfunded by $332 billion. However, that estimate is based on using an eight percent discount rate. When the researchers applied the same standards private plan are required to use – that is, a six percent discount rate – the shortfall is $933 billion – three times the original estimate!
The study concluded that once states fully realize the true shortfalls in their plans they will likely take action to contain future benefits. One option they will consider is to move away from the defined benefit that plans provide today, and/or reduce benefits to future plan participants.
The ground truth here is that the rules of retirement are changing. The concepts that have applied to retirement in the past can no longer be counted on for those of us who will be retiring in the future. America's aging population, the general decline in government revenues and corporate profits combined with devastating losses in the stock market are causing both government and private employers to make drastic changes to their pension benefits. In the short term, this takes the form of underfunding the plans, not funding the plans at all and eventually, not offering any pension benefits.
What's the answer? Now more than ever, we must take responsibility for designing and funding our own pension plan. We can no longer assume that our employer will take care of this for us. That's why I have developed the Personal Protected Pension Plan™ inside of our Hidden Wealth System™.
This is a plan where your money grows at a guaranteed 7-8% tax-free rate, is immune to market loss and then is transferred to you (or your heirs after you pass), tax-free! You can even build-in inflation protection for your retirement income so that, as inflation rises, the income you receive from your Personal Protected Pension™ increases, thus protecting you retirement lifestyle. We can even show business owners how they can build a Personal Protected Pension plan for themselves!
Want to learn more? Visit the Personal Protected Pension Plan™ section of our web site at:

Friday, August 6, 2010

Worried About Social Security? Prepare Now!

Are you worried about Social Security's future? Well, join the crowd.
As the national debt soars, the pressure on Washington to cut spending is rising. Social Security is bound to become a part of the cost-cutting conversation.
The program is projected to pay out more this year than it takes in, which is as much a function of the weak economy as it is an aging population. The New York Times reports that, if nothing changes, Social Security will be able to pay full benefits through 2037 after which, payroll taxes will only provide enough income to pay out about only 75% of benefits.
Most experts agree that the program needs to be bolstered for the long-term. Some proposed solutions are:
  1. Raise the retirement age to 70 for people who are at least 20 years away from retirement,
  2. Increase the Social Security payroll tax,
  3. Subject more income to the payroll tax,
  4. Reduce initial benefit payments and
  5. Cut cost of living increases to beneficiaries (this would affect current retirees).
Don't like these options? Too bad. At least some combination of them will be required in order to keep the program alive, in the long-term.
What can you do about it? Stop depending on the government (and your employer) for your retirement. The government has shown that it cannot be financially responsible and most companies today do not offer pensions. Instead, they offer 401(k) or 403(b) plans that require employee contributions. The company then manages these plans (some times ineffectively). When they employee retires, they are then able to take distributions from the plan's contributions and earnings.
To be successful in retirement, you need to do what made you successful before you retired-rely on yourself. There is a way for individuals to create their own Personal Protected Pension Plan! This type of plan is protected from market loss, grows tax-free, can a accessed tax-free and anything remaining after your death can be passed to your heirs, tax-free.
Does this sound too good to be true? Do you want to learn more? You can explore this fascinating concept in detail in the Personal Protected Pension Plan section of our website. I encourage you learn all that you can so that you can take charge of your own financial future.

Wednesday, August 4, 2010

Power Principles for Success is a Best Seller!

All of us here at The Hidden Wealth System, The Chuck Oliver Team want to say, "thank you!" Your support has propelled us into the number one spot on one of Amazon's Best-Seller Lists. We are also currently in the top five on two other lists. We made best-seller on only the second day of sales and we would still be climbing except that the first printing of the book has now sold out on Amazon!
But don't worry, there are more copies coming. If you're interested in assuring that you get your copy, just email us here at info@hiddenwealthradio.com and let us know.
Without your interest in this book, none of this would be possible. Thanks for your kind words and encouragement that all of you have provided to us. We greatly appreciate you, and we just can't say it enough!