How often have you seen an acquaintance retire, only to begin having health issues?
(And isn't that a SCARY possibility in this changing health-care world?)
For me, "retirement" will simply be a chance to work, (maybe for nuthin') for others.
I've been saving/planning for retirement most of my life...
For over 20 years I've contributed the maximum amount to a 403b or 401k plan.
How disheartening to watch that healthy nest-egg dwindle to less than half its value over the last four years!
I wanted to protect what was left. But in this screwy world, where could I put that money to work so it might actually reverse the downward plunge?
My search was depressing.
The stock market is idling along doing almost nothing.
A 1% return is all we can expect in a guaranteed fixed instrument these days, and that won't cover the nasty effects of inflation.
A friend suggested annuities.
He even suggested a couple companies I might investigate.
One of those offered an instrument tied to the Standard & Poor 500, guaranteeing a 6.5% minimum return. If the S&P gained more than 6.5, I'd reap that benefit too.
Moody rated A-.
I researched that company and found it to be relatively small, conservative, and financially solid.
A month ago I moved 80% of my 401k moneys into an annuity with them.
Yesterday I read a report that said many companies that have been offering annuities would stop selling them...
Too much risk for the company in this economy.
Startled, I did a quick check on the company I invested with to find they still have an optimistic long-term outlook.
I breathed a (maybe temporary) sigh of relief.
But here's the REAL DEAL, folks-
If the U.S. Treasury continues "Quantitative Easing", (translation: Printing money as fast as they can),
my 6.5% minimum return will be meaningless because our currency will look good as wallpaper.
Ammunition would have been a far better investment.
Scranton, PA public servants were temporarily being paid minimum wage this week. How long will they continue to risk their lives for that compensation?
Thinkin' about retirement?
No... think about survival.
Here we go?