You Have A Pension, You're Safe, Right?

The financial crisis is destroying the wealth of investors everywhere. You probably have some friends who have lost almost everything in their 401K. The whole time, you sit back and relax because you have a pension. Your benefits are defined regardless of the stock market.

I know many people who believe this. Instead of taking action to protect their future, they are burying their head in the sand and feel smart for doing so. Yet, they seem to forget that their pension is invested in the stock market. Yes, the same stock market that is currently tanking.

The money for the pension doesn't come from nowhere. Is it possible that assuming your pension will always be there may not be the wisest idea?

Take a look at this post on ChrisMartenson.com:

"Other states and municipalities are facing similarly difficult choices. In Pennsylvania, the state employees and public teachers pension funds both have warned that employer contribution rates could surge seven-fold from about 4% of payroll to 28%, starting in 2012. The Detroit police and fire pension plan might have to double employer contribution rates to 50% of payroll by 2011, according to the fund's outside actuary.

Two of the nation's biggest public pension funds, New York State Common Retirement Fund and the California Public Employees' Retirement System, also have warned state employers to brace for future rate increases.

cont.

The Detroit police and fire pension plan, where employees are ineligible for Social Security so the benefit plan is more generous and costly, employer contribution rates could double to 50% over the next three years unless the markets turn around, said Norman Jones of Gabriel, Roeder & Smith in Southfield, Mich., the fund's outside actuary."

If you are not learning how to thrive in the financial crisis, let this be a wake-up call. Even if you have a pension, you need to get ready just in case.

As always, we'll teach you for FREE.


Pablo

FinancialCrisisAnswer.com