Though apparently a species on the verge of extinction, we suspect there may be a few stray souls wandering around out there with a corporate pension fund or some kind of employer-based retirement. To them we say, “Good luck!” You’re probably going to need it. In theory it’s a great idea. The problem is that fewer and fewer corporate pensions are actually being funded these days.
Don’t believe us?
Let’s ask Milliman Inc., a Seattle consulting firm that reported the funded status of the 100 largest corporate defined benefit pension plans dropped by $108 billion in August 2010. Great Caesar’s Ghost, what’s the point of having a pension fund unless you’re actually going to put money in it? Do you realize the ramifications? It means that even though your employer is still faithfully docking your paycheck for contributions to your retirement, they’re not actually using the money they take to invest in the fund.
What are they using it for? There’s no telling – depending upon the financial health of the company they might be using it for operations, current payroll, or maybe executive golfing vacations in Fiji. What they’re doing with the money isn’t really the point. It’s what they’re NOT doing with that should concern you.
So what are you going to do? Trust that your retirement fund managers will grow a conscience, brain, or maybe both, and get busy tending to your retirement nest egg like they should. To be fair, they’re probably putting some money in it for investment purposes but, judging by the numbers, there’s a hefty chunk going elsewhere. We’re also not suggesting there’s anything criminal going on but it might be hazardous to your Golden Years. Our suggestion is not to wait until the anvil falls on your head to step out of the way. The only way to guarantee a comfortable retirement is to control it with your own two hands. Your best option is real estate – income property to be specific – and the sooner the better.
Stay tuned and we’ll teach you how to do it. Or call one of our expert counselors right now at 714-820-4200 and pick their brain for free.
The Creating Wealth Team
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