If you wish to thrive & survive in the coming months and years you need to learn to think & plan differently from the crowd. Relying on governments is not the solution. Consider new & alternative ways of making money and then know what to do with it when you have it.
I originally wrote this article in June 2012, almost all that I predicted has come about or is likely to do so. Despite all the politicians collectively trying to talk things up, they are simply kicking the can down the road. Today, December 12th 2013 the US government is still printing $85 BILLION per month so that it can buy its own debt! The Eurozone continue to try paper over the cracks and yet fundamentally little has changed. What HAS changed is the publics’ realisation that pensions, health care and social security systems will never be the same again. The conspiracy theorist in me wonders if a lot of what has gone on was done deliberately for this very reason!
Change Your Future
2012: Many friends & members of my Forex Mentor Pro mentor group are becoming seriously worried about their financial future & especially their retirement. Many governments have or are about to move the goal posts and change the age of pension entitlement from 65 to 67 years of age (this will be replicated around the world and will not stop there). Nor will this gradual shifting be enough, there is even the danger of some governments defaulting on their pension obligations, they simply do not have the money. Many people have contributed for over 40 years and had a “contract” with the government to enable them to retire with a reasonable income, often supplemented by private pension payments.
Those who have private pensions (80% of people do not or do not pay nearly enough – the average private pension pot in the USA & UK for example is less than $75000) have seen recent stock market falls, galloping inflation and almost non existent interest on savings decimate this side of the equation as well.
A friend of mine, Frank (not his real name) is from Holland. He has been paying an extra 1.9% of his gross salary to the government for the last 25 years so he can retire at 62. This adds up to well over $100.000 when you add compounding. Everything Frank has is geared to this date, he will be mortgage & debt free, he has already bought a boat and is planning to fulful his dream of sailing around the world. This year his government have changed the rules and now he can not claim these additional benefits for another 5 years. As Frank says “not only have they broken the contract and stolen my money it also feels like they took 5 years of my life.”
Frank & I are the same age. In contrast I am doing rather well. I don’t say this to brag, but simply to point out that many conventional investments, savings and state pensions are becoming obsolete, a thing of the past. I started to change my thinking over 10 years ago when I semi retired aged 40 & with four young kids. I had been successful in creating and building businesses from scratch, the first when I was only 21 & with neither money nor family experience behind me. By the time I hit the big 4 0 I was able to sell my third business and semi retire and that was despite a major financial crash in my early 30′s when a messy divorce and bad business decision meant I lost almost everything and had to start again. During this period I was getting up at 4.00 am to drive a truck for less than minimum wage.
Change Your Future:
A New Century, New Thinking
2000: A new century dawns and the previous year I decided to semi retire aged 40. I had been creating, building & running businesses since I was 21. I had also bought and sold lots of property and built my own 5 bedroom detached house at a fraction of the normal cost and with huge tax savings. I had accumulated a decent amount of money & assets. I was sick of working 70 hour weeks, the 140 mile daily round trip on clogged up motorways, the hassle, the labour laws & all the other energy sapping, non profitable paperwork mountains that the government seemed to delight in creating. I was permanently tired & usually in a bad mood on the rare occasion I saw my 4 young kids. Time to change for the better.
My wife & I ( I will write in the 1st person from now on as its easier, but most financial things I recount are she & I together) spent the next 18 months buying & refurbishing houses to rent out and create extra income. Then we cancelled the private pension plan, sold the business, house, cars the lot and emigrated to the Canary Islands. Friends and colleagues were convinced I had lost the plot. Who in there right minds builds a business to that level and walks away? I discovered later that they were betting on how soon I would pack my bags and come back to “reality.”
I define this time as to be my financial epiphany, when I started to think & act differently to the herd.
This was to be of immense help when the economic collapse finally arrived around 2008. The old way of thinking is finished. If you want to protect your financial future you need to think differently. The old days of paying the top rates of tax and handing the balance over to a financial adviser are not for me.
In the last 30 to 40 years everybody has been advised to save money and or invest in the stock market. To put your money in a pension plan. Put your money in a 401k. If everybody is doing that and stock markets continue to dive then lots and lots of people are going to be in for a major shock short term and especially the long-term. Handing over money to some financial adviser to look after my money is not the solution.
Often these advisers have less life experience & earn less than their clients and they only have one mantra “You need a diversified stock portfolio.” Had you followed mine & my gold mentor Georges lead and invested in gold at $400, $700 & yet more gold in January 2011 you would currently have made substantial gains. Most financial adviser either do not know any better or because they do not earn commission on things like gold & silver bullion, they continue to push the same old format.
I speak from experience. In my early 30’s and after a difficult financial period in my life I went from driving a truck for less than minimum wage to being a financial adviser for one of the big UK banks. A two week training course, with multiple choice questions (get an answer wrong and go back and change it) and I was in a bank the following Monday advising clients. I know things have moved on since then BUT the advice, in my opinion, is still flawed.
On the subject of flawed systems lets talk about the biggest ponzi scheme on the planet, government pensions. These are simply unsustainable. The current pension crisis is not going to go away. If you are anything less than 40 years of age the chances of the pension arrangement existing in its current format by the time you come to retire is very slim.
Equally if you’re in your 40s now then I can see the retirement age by the time you do come to retire being upwards of 75 years of age. Already some European countries have moved the goal posts for the retirement age from 65 to 67. The bottom line is that the world population in most western countries is getting older which means there will be more people claiming on the system. More people expecting (quite rightly, as that is the “contract” they had with their governments) to take out their share. More people needing health care and yet there will be fewer people contributing.
In the USA for example when the pension system was created there were 44 workers paying into the fund for every retiree. Now that figure is nearer two to one, not helped by the baby boomers who are retiring now and in the next few years. The system clearly can not continue to work in its current format, if at all.
The bottom line is you need to think for yourself.
You need to think now of how to provide for you & your family both in terms of your general financial future and especially when it comes to the subject of retirement. You will have heard the comment that there is a huge transfer of wealth in progress right now. To take advantage you need to learn to think and ACT differently NOW.
In the next article mentor Dan Low, veteran self improvement & behavioral expert shows you the psychological mindset you need to adapt to become a successful person. CLICK HERE to go to Dan’s simple solution!
Author: Marc Walton
Change Your Future