Tags: retirement | 401k | pension | dollar

Why It's More Important Now Than Ever to Take Charge of Your Retirement

By    |   Monday, 24 February 2014 06:44 AM

I sat down with some friends recently and was talking to them about how things have gone through the years. I talked about how it used to be much easier to retire.

They said, "How's that?" I said, well, your grandparents typically had pensions. This means that all they had to do was do their job and stick to that job and they'd have a retirement provided to them by the big corporation they worked for.

So generally, they could clock in and clock out for 30 years and a retirement was automatic. They didn't have to really think about their retirement at all or plan for it. It essentially came to them by default for "a job well done" for the 30 years.

Therefore, many in that generation didn't have to plan for retirement. They only had to focus on their job and doing it well rather than also learning about financial planning for their future.

Then, the next generation came along. Some of them got part pension and part 401(k), but many of them had only 401(k)s.

With a 401(k), now you had to set aside money yourself. Ah, this required discipline on the retiree's part for the first time.

You see, pensions had become such a huge obligation to corporations that they had to shift that responsibility to the individual by allowing them to invest in 401(k)s.

Now, at first, for many years, these were great for those who chose to invest in them. Why? Two words: matching funds.

In other words, if you invested for your future, many times the company would match your funds up to a certain amount. That was great because it was like getting a free pay raise and having your company help provide for your retirement in a small way, but which would add up big time throughout the next 30 years before you retired.

The problem? Not everyone was disciplined enough to contribute to a 401(k) on their own. They would justify why they needed every penny they made right then and there and so they'd think about investing for their future "someday," which never came.

The other problem is that when the last prolonged recession hit, many corporations had to cut expenses and one of the easiest expenses to cut were those "matching funds" to 401(k)s.

Now you're down to just what you can contribute. Oh sure, after five years of an economic slump, things are beginning to pick up economically a bit. However, guess what? The matching funds that went away aren't returning.

Can you see why you've got to have a laser focus now more than ever? Now you can't just be "good at your job." You've also got to become good at managing your money for your retirement too.

And this doesn't even take into account the loss of the purchasing power of your dollars. America came off the gold standard in 1971 under President Nixon, and the dollar has lost 82 percent of its value during those 43 years!

That's a new thing that you and possibly your parents have had to fight that your grandparents didn't have as much of a battle with.

So now, it's not only about investing. It's about investing in the right things that do well with the dollar's depreciation and inflation's rise. It's for this reason that I decided to launch the Ultimate Wealth Report newsletter because I knew many people wouldn't end up making it over these hurdles on their own.

After all, it is hard to learn to become an expert at your job, an expert saver and an expert investor all at once. But I make it easier by showing you the types of stocks that will perform well as the dollar continues to be diluted and as inflation rises.

We invest in commodity stocks and stocks that benefit from the dollar's fall or the rise of foreign currencies against it. In that newsletter, I not only show you which stocks to be in, but when to invest in them. You see, you've got to catch them when they trade at a value, and in the newsletter I show how that's done.

So if you need help with your investing in general, or you need help in knowing how to combat the fall of the dollar and the rise of inflation, come join me in the Ultimate Wealth Report and I'll teach you in plain English how to win the battle against inflation/dollar dilution and you'll be able to see what I recommend investing in and at what price and why.

But whatever you do, purposely plan for your retirement. Be strategic and don't delay!

God bless!

About the Author: Sean Hyman
Sean Hyman is a member of the Moneynews Financial Brain Trust.
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I sat down with some friends recently and was talking to them about how things have gone through the years. I talked about how it used to be much easier to retire.
Monday, 24 February 2014 06:44 AM
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