I am not a financial adviser but I did have investments that I saw vanishing before my very eyes, and it concerned me greatly. As a person with very little investment experience, I felt the need to search for satisfactory answers.
It has been my experience that whenever I am motivated to seek an answer to a question, that answer invariably appears, and so it was with my search. I had read Rich Dad Poor Dad by Robert Kiyosaki a number of times and found it very informative. A friend of mine recommended I read his book, Rich Dad's Prophecy, so I ordered a copy. That book was a major eye opener for me.
We are used to the market going up, down and sideways. That is it's cyclical nature. However, if we were to graph it out over many years we would see that the big picture showed a steady upward motion, even though there were small dips here and there. The graph these days looks very different and it's quite frightening for many people. It is headed down on a very steep curve.
An added problem to this already serious situation, is that by the year 2016 the first of the 75 million baby boomers in the U.S. will be turning 70. When these baby boomers reach age 70 1/2 they are going to be obligated, under law, to take all their assets out of their 401k. The Government has been patiently waiting for the tax dollars, and this is their pay day. Just think for a moment what this means!!
Literally millions of people are going to be selling off their mutual funds and stocks, because the Government tell them they have to. It's so very simple....when there are more sellers than buyers, then the market goes down. When these baby boomers sell off their mutual funds and stocks, there are not going to be that many younger people buying, to balance the sales with purchases. This is a disaster waiting to happen. I suppose the Government could step in with an amendment to the law, allowing people to keep their money in their 401k longer, but then the Government would not get their tax dollars until much later.
Even though most people realize they are in financial trouble, they don't understand the full impact. The advice they are being given is to still diversify, sit tight and ride out the storm. A great number of them seem to be following that advice, but this is what Warren Buffet says about diversification...."Diversification is a protection against ignorance. It makes very little sense for those that know what they are doing".
It's not too late to get a handle on your finances and make some intelligent decisions. Seek out the education you need to fully understand your financial position and take action now, to secure additional funds to see you through your retirement. The experts tell us that a home-based business is one of the wisest choices a person could make, especially during this economic climate. It is well known that fortunes can be made during such a time. There are many great opportunities out there. Go and find yours and take action.
It has been my experience that whenever I am motivated to seek an answer to a question, that answer invariably appears, and so it was with my search. I had read Rich Dad Poor Dad by Robert Kiyosaki a number of times and found it very informative. A friend of mine recommended I read his book, Rich Dad's Prophecy, so I ordered a copy. That book was a major eye opener for me.
We are used to the market going up, down and sideways. That is it's cyclical nature. However, if we were to graph it out over many years we would see that the big picture showed a steady upward motion, even though there were small dips here and there. The graph these days looks very different and it's quite frightening for many people. It is headed down on a very steep curve.
An added problem to this already serious situation, is that by the year 2016 the first of the 75 million baby boomers in the U.S. will be turning 70. When these baby boomers reach age 70 1/2 they are going to be obligated, under law, to take all their assets out of their 401k. The Government has been patiently waiting for the tax dollars, and this is their pay day. Just think for a moment what this means!!
Literally millions of people are going to be selling off their mutual funds and stocks, because the Government tell them they have to. It's so very simple....when there are more sellers than buyers, then the market goes down. When these baby boomers sell off their mutual funds and stocks, there are not going to be that many younger people buying, to balance the sales with purchases. This is a disaster waiting to happen. I suppose the Government could step in with an amendment to the law, allowing people to keep their money in their 401k longer, but then the Government would not get their tax dollars until much later.
Even though most people realize they are in financial trouble, they don't understand the full impact. The advice they are being given is to still diversify, sit tight and ride out the storm. A great number of them seem to be following that advice, but this is what Warren Buffet says about diversification...."Diversification is a protection against ignorance. It makes very little sense for those that know what they are doing".
It's not too late to get a handle on your finances and make some intelligent decisions. Seek out the education you need to fully understand your financial position and take action now, to secure additional funds to see you through your retirement. The experts tell us that a home-based business is one of the wisest choices a person could make, especially during this economic climate. It is well known that fortunes can be made during such a time. There are many great opportunities out there. Go and find yours and take action.
About the Author:
Jan Shimano was District Manager for Health & Welfare Canada for a number of years. She was also self-employed as a Nutritional Consultant. She is currently a Business and Health Coach and runs her own internet marketing company from her residence in British Columbia. Jan also invites you to visit her on YouTube at www.youtube.com/1jinny
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