Being to conservative Doesn't Pay off
Being to conservative Doesn't Pay off
1. Inflation
Over the last 20 years, inflation has proven to be very irregular. The luxury days of counting on bank interest rates to keep up with inflation are over.
2. Consumption
Throughout the world, consumption has exploded. The last two generations have become the ultimate consumers, eating up much of the money they should have saved for retirement. Unbelievably, the average Baby Boomer (born between 1940 and 1960) has less than $2,000 saved toward retirement.
3. Income Taxes
The average family loses between 20 to 40 percent or more of their lifetime earnings to local, state and federal governments in the form of direct and indirect taxation.
4. Social Security Plans
When Social Security was set up in the United States there were 15 people paying in for every one receiving benefits. Benefits began at age 65 and the average American male was dead at 62. Thus, there was plenty of money to fund the program. Today this is not the case. Today there are 2.5 people paying in for every one receiving benefits. To make matters worse, Congress takes the money and puts it in to Treasury Certificates, which do not even keep up with the rate of inflation! The Social Security behemoth is doomed. Currently 15.3 percent of every dollar in wages paid in America goes to fund this dinosaur. Nonetheless, most experts predict its demise between the years 2010 and 2020 unless the government takes more tax and/ or radically reforms the system (for the better).
It's doubtful that the current youth of America, Generation X and the younger Baby Boomers are going to pay the 20 to 30 percent Social Security tax experts say will be needed to keep the system alive long-term. There will be a revolution first! The potential for the failure of over-taxed, under-funded Social Security systems is occurring throughout the world.
Make no mistake. The governments of the world are keenly aware that they cannot continue to fully fund retirement. Many countries have gone to the introduction of compulsory retirement plans which show the governments of the world have clear intentions of the individual taking responsibility for his or her own retirement.
5. Increased Longevity
People are living longer and requiring extra funds to sustain their lives beyond their retirement age. Conversely, employment opportunities for older citizens to extend their working age (at their current pay level) and provide for their longer retirement are diminishing for social and skills-related reasons.
6. Higher Cost of Housing
Housing costs for the average family, within city environments where employment opportunities are available, have risen dramatically in relation to the wages offered by employment. It takes the average family many more years to pay off their home than it would have taken for their grandparents with a similar quality of life.
As a result of the above factors, the Saver is destined for financial mediocrity unless these people have already saved enough for their retirement years. Their retirement will require family, government, and employer subsidies (if available) just to provide the basic essentials for survival. Pay More Attention To The Hottest Mode, You Will Be Hot Too Where to buy Puppies Top Tips for buying Insurance in UAE How Are My Interest Minimizer Payments Process For Nationwide Biweekly Administration? Online Women Clothes Shopping For Perfect Outfit Where To Buy The Best Earl Grey Black Tea? Where To Buy Amoxicillin? Does The Transformation Solution Work? - Does it really work? Should You Buy The Transformation Solution? Buy Enlarge Maxx Why buyers select laminate flooring Buy Wellbutrin Buy 3DS Nintendo - Your Ultimate Option How to Avail Sizzling Discounts in Online Shopping?