Politicians lie. Or at the very least, they make promises they know they probably won’t be able to keep. That’s by no means supposed to be news for you, but it will set the groundwork for this article.
With that in mind, politicians have been saying whatever it is that they need to in order to get elected for some time now. And those promises have been falling short.
So have you ever stopped to wonder when it would all catch up with us?
Here’s the big promise politicians haven’t been keeping, and why it could mean the death of YOUR retirement…
Let me lay it all out as simply as I can:
a) Politicians all over the county promise future retirement benefits via pension funds to government employees.
b) Public pension funds are not normally fully funded, and need future investment returns to get to the finish line.
c) Those promise-making politicians don’t spend the money necessary to fund the pension plans.
d) Low interest rates (mixed with some zero interest rate and even negative interest rate policies) inhibit investment returns.
e) The retirees who aren’t getting the pensions they were promised kick and scream (understandably so) to the people who made those un-kept promises.
f) Taxes have to be heavily raised (such as property tax) to then fulfill those pensions.
Does that all make sense?
So you may be Joe Person who know has to endure triple the property taxes because of the above issue on your city.
What can you do? You can try to sell your home and move, but those property taxes will impact the price of your home. It’s a matter of supply and demand.
So while you and others may be trying to sell, who will want to be moving into that situation?
And this is a problem hitting cities all over the U.S., with the worst still likely to be ahead of us. It’s worth noting that this certainly isn’t in every city. And some states have it much better off than others in this regard. But the reach of this issue, at the moment at least, looks like it will be vast.
The bottom line is that public service pensions appear to be damaged beyond routine repair. And that means one of the following 3 will have to pay the piper for it:
- Public services, such as firemen and police.
- Current and future retirees.
- Taxpayers.
This pension crisis could be killing your retirement right before your eyes, meaning you’ll need to adjust your plan to get there.
Or adjust your expectations… Or decide to work later in life than you had previously planned…
…Or follow the guidance of Wall Street Informer’s recommendations.
While regular investment returns have to account for the down years in the market, we’re able to profit from those dips, meaning that you’re retirement savings actually increase while everyone else losing!
We’re facing challenges we shouldn’t have to in the coming years. So here’s a bit of necessary encouragement to start taking action now…
“By failing to prepare, you are preparing to fail.” – Benjamin Franklin
