Now ... let me make this as simple as possible. What we will see over the next 5 to 10 year's is a crisis forming over retirement in America ... like nothing ever seen in history. Now you may think ... "Oh ... this is just more doom and gloom talk, etc ..." by me. Again ... I never talk doom/ gloom ... because there is no such thing ... we create our own misery, happiness ... as well as reality ... so therefore ... it doesnt exist anymore than the tooth fairy. How can I make this claim? ... the same way I made every other claim in this journal over the last year is how ... and I got alot more accurate than inaccurate. Why? ... because again ... I am doing something that most people WILL NOT do ... they REFUSE to ... which is look at the entire picture, and be realistic, too many of us simply lie to ourselves, believe in the lies of other's ... and see only what they want to fantasize.
A buddy for instance ... been in the workforce for 40+ year's ... invested in this 401K the last 20 or so ... a couple year's ago looking at the situation ... we were having breakfast taco's and Menudo at one of our favourite places we like to meet at on sunday morning's for Menudo (Menudo is a Mexicano Soup)... I told him ... to get his 401K money and put it elsewhere's ... he looked at me as if I was nut's ... and said, his is doing just fine.I left it at that ... he's a grown man ... and it's a free country. A couple month's ago ... he had sad new's ... he basically lost his ass ... or at least a portion of the money, and he still work's full time ... but he is now 63. My daughter who is 23 who lives with me ... took my advice ... she had a decent paying job, I told her to be careful ... primarily because she bought/ financed a new car ... that was nice ... after she bought it ... within a couple month's her company laid off about a thousand folk's or two, I just simply told her to think about a car that is maybe slightly used is all ... not old ... but not brand new ... understand the value system in the auto market's ... it will save you a bundle. I advised her before the company blindsided them to get her 401K money out ... she took my advice on that. Again ... she's a grown woman and it's a free country ... I love her ... so I try to advise her, even as a kid ... I only advised ... and alway's made her make her own choices ... why? Because to make her learn ... and face reality that you must crawl before you can walk. And to understand ... that life can be a bitch ... so be a bitch back! She was re- employed in no time ... when she first whined about her getting cut ... I basically told her what I would anyone ... you have 48 hour's to whine with self- pity ... get drunk or whatever ... then start to kick ass and get over it! And believe me ... she's a real hustler!
Why will this be a disaster? Because over 60 million American's have these 401K's as a primary source of retirement income. 401K was not designed to be a retirement plan to begin with ... that is what folk's are missing, and refused or didnt see coming, instead ... just looking to make a quick buck ... have a tax shelter ... and think that money can grow on tree's. It was created as a saving's plan and tax shelter in the late 70's for working America. Trillion's have disappeared in a matter of month's from 401K fund's ... where did it go? Where do you think? ... will you get it back? Stop dreaming and be fair to yourself ... forget it ... it's gone ... period. Employer's decided to turn them into unofficial retirement plan's to eliminate company retirement plan's ... okay ... since everyone likes to hear the truth. And the multitude of investment firm's that came like termite's out of the woodwork ... promoted them as that. And American's had the opportunity to simply gamble their life saving's and nest egg's ... and so they did ... basically not much different then taking half your life saving's to Vegas on the weekend and trying your luck ... same thing damn near ... but you must alway's realize ... that the house is designed to win, same with these investment's.
"60 Minutes"(CBS) recently interviewed David Wray ... President of the 401K Council of America and lobbyist for the 401K Industry. They were slamming the man ... as if he and associates ripped off American's. Mr. Wray said it wasnt their problem ... and all these folk's "chose" to do this ... and were given multiple investment option's, and have no one to blame but themselve's. I have to agree with Mr. Wray ... if you lost your ass ... did anyone strongarm you to invest? Didnt you do your homework? You complain about all the hidden fee's ... as legal, penalties, trustee, stewardship, transactional, bookkeeping, finder's, etc. There is more fee's then you can shake a stick at ... did you not read in detail what this all consist of as far as contractual term's? I didnt go with the 401K 20 year's ago I was offered ... while 95% of my co-worker's did ... why? Because let's just use common sense here ... okay ... let me just use let's say random figures off the top of my head to apply here. Let's say a person comes to me ... ask's me to invest my money for me ... and they will give say a 10% return ... and I get the tax haven, etc. I first think ... why do I deserve such generosity whenever someone want's to make or save me money? I can only assume that their end will be much greater ... maybe they make 30% ... who know's. I also look at the fact that any of that 10% I did earn ... if anything happen's to where I decide to take my money out of the 20 or so mutual fund's with fancy known names that they let me choose from ... that I will have a penalty that will take all I made ... and the IRS will also bite my ass as well. Why would I possibly give someone ... so much of my money ... to invest for me as they see fit ... and give me a cut, when I am taking no more risk by taking the money myself ... doing my own homework and investing in a variety of other way's avoiding all the tax intervention crap, and their cut's and fee's?
It's this investment system that we have so much faith in and are taught is the "way to go", is the problem ... as I posted time again. And to keep on feeding it ... and losing time and time again ... sooner or later ... you will see the light. The choice is your's/ our's ... it's our freedom to take them equity risk's or whatever risk's, it's a matter of doing your homework and personal responsibility. And dont say your not educated enough ... I'm a damn street kid ... the same game applies on the street level ... whether your investing on Wall St. or in the local illegal drug market's ... the game is the same ... the player's faces are different is all.
Be smart ... get out ... and manage your own money and be more cautious ... and dont listen to these damn bank's and Washington ... tell you if we all take our money we will all perish or other nonsensical talk ... this is because they only fail ... we wont ... bank on it!
PS: Our President is currently working to actually make thing's a little more fair in the game ... it has been very one sided ... and I thank him sincerly for addressing this. Another thing...when I say to take 48 hours to "cry/ whine" ... I mean that. It is important for most to express their emotion's ... we are taught these day's to bottle up all our thought's and emotion's and smile while were getting screwed ... and many do. I cry, laugh, raise Hell, get angry and all the rest ... but I limit it to where "it" does not consume me is all ... just like fear ... Yes ... "fear" ... but dont let fear control you. Also ... if your young ... say 20's/ 30's and you pull your investment ... that's fine ... but when market recovery comes and new regulatory revision's ... it will be good to re- invest if you choose ... but for those who are say 50 and over ... it's not to your advantage as much to re- enter.
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I am going to put a recession recipe in the classifieds next week:
ReplyDeleteHot Dog Ramen Noodle casserole :)
BTW, I tried Menudo when I lived in Amarillo, Texas. I didn't care for it. It's made with cow guts, right?
ReplyDeleteHeh,heh,heh ..... sound's like a good recipe for the times. I notice you have quite a knack for recipe's it seem's like... perhap's you should be a Chef? I actually eat out most of the time, not that it's healthy or nothing, just not bad on price ... Dallas is known for "eat's", very competitive too.
ReplyDeleteYes ... one of the main ingredient's in Menudo is the cow's stomach lining I guess. Not all Menudo is the same, I am choosy. But yeah... I grew up on mexican food actually. But I like "Tex-Mex specifically, and I like the really hot chili's. Nowaday's these goddamn restaraunt's in the cities...that are popular serve all this watered down chili-light or some crap, because of all the gringo's(whites) that go to them. So I am picky about my salsa/picante's as well... when I want it hot and spicy.... I mean it. I like the hole in the wall joint's in the barrio's the best...where the mexican's go eat I reckon. About the only kind's of places where you can find stuff like cow tongue taco's and such, most whites and black's dont eat those food's much... but their really good. I make Huevo Ranchero's at home on occassion. I use beef Chorizo ( a type of spicy mexicano sausage)for breakfast taco's for instance, I need to stop girl ... I'm getting hungry! :)
So you been to the Lone Star State ... even lived here, heh? I was in Amarillo last a couple year's ago...it's one of them town's no one ever seem's to talk about here...way to the extreme north and Panhandle. I really dont know much about it...my teen year's was in the Houston/Galveston Bay area (south coast) and lived in Dallas most of my life. Lived in San Antonio awhile too. Ever been to Dallas,Houston or San Antone/Austin?
Thanx for the visit CC Rider... :)
I spent about a year in Amarillo. It's the only place in Texas I've been. My Sister & I hitch-hiked down there from Oregon when I was 17 & she was about 22. This was in the 70's. If I remember right, our plan was to go to Florida but we ended up in Amarillo, Texas. I have a lot of stories about that place, not all of them good. I had my first experience with the ugliness of prejudice & racism there. But, I thought the Texas Sky was beautiful & I learned to love chicken fried steak & iced tea.
ReplyDeleteActually ...they were having racial tension's in Amarillo even as recent as the late 90's, and I have heard about it myself. I was there briefly in 2007, I hadnt been there since the early 70's before that...it's just a part of Texas I dont see much, cause of it's location. If I drive to LA for instance...I will take I-20 out of Dallas which turn's into I-10 goes straight into downtown LA, so I go through West Texas and places like El Paso,Phoenix,etc. I was suprised how much Amarillo has grown when I went there in 2007 actually.
ReplyDeleteI'll tell you right now...I love chicken fried steak! :)
Later CC ..........