The state of the US economy has been a concern for some time now. The strength of the US Dollar is worrying as it continues to slide, and there is an ever increasing chance that the USD will collapse in the future.
The growing debt problem has been the main focus when it comes to the economy, but there’s another growing issue that people are either ignoring or are choosing to overlook.
Just like the rest of the globe, large numbers of baby boomers are reaching retirement age. In fact the numbers are set to increase drastically year on year.
The rough estimate is about 70 million people in the United States.
Now why is that a potential problem? …
Well most people have planned ahead for a retirement and set up a 401K in order to support them for retirement. There is nothing wrong with that, and it shows that many people have been wise and planned ahead.
But here’s the problem, the 401K system was designed for people to withdraw $1000 a month to live on. First of all, for many of you reading this, $1000 a month will not even come close to supporting your chosen lifestyle … Not to mention, your buying power is continually eroded with inflation!
And that’s not all, here is the bigger problem, the problem that I suspect you may have picked up on …
The majority of these 401K’s have been invested on Wall Street. Now think what’s going to happen when suddenly 70 million or so suddenly start withdrawing $1000 a month. The Stock Market is going to take a hit.
So how do you protect yourself, how do you make sure you will be able to maintain your lifestyle into your retirement?