Sunday, January 6, 2008

Babyboomers Unleased!

Retirement is probably the least thought about thing for as finance in America.Pensions and Social Security are thought to be the only thing that the majority are concern with for as Retirement goes. Pretty much the vast majority of Americans think that the 21st Century is like the Industrial Age after World War 2. Since the industrial Age was home of the middle class family, that when a laborer put 20 or more years in a company usually retired with a pension that lasted their whole life. Here is a reality check the pension was set up because in 1940's the average life expectancy was 65 , guess what you were expected to die before you received that glorious pension. Also Social Security was built on the same premise of you being deceased before being eligible.

Well now we live in the 21st Century where a neo monotonic president by the name of George Bush has put are nation into 49 billion dollars of debt and the average life expectancy is around 85. This doesn't mean anything for people born before 1947 but Means everything for people born afterwards. The biggest portion of that group range is called the baby boomers, which are people born between the years 1947 and 1964. It said when the majority of baby boomers retire it is going to cost the nation 69 billion dollars a month which is equivalent to a war in Iraq happening every month. So how long will social sercurity or any pensions like equities hold up against these numbers.? Answer I give it a couple of years before the whole social sercurity thing go could put.

I believe that the United States would go under after this catastrophe unless taxes go up a whole lot. Meaning that the Baby boomers would cause an alleviation of a massive amount of liquidated assets from people who superseded their birth periods. That means in plain English that all Americans are going to have a lot less money then they previously did. My solution to this problem is to stop Social sercurity as a whole. Meaning all you loyal readers out their should plan another way of retiring such as dividend stocks,401k,Ira ,annuity or some sort of passive income investment. So one day you can say I have become asset to my nation not an debtor.


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