Retirement Finance

Many workers contribute money to retirement funds. Some have maxed out their contributions at $2000 to $4000 monthly into these funds.

This is unwise if you consider the economic climate we are currently experiencing. All of these investments are made in USD, which has fallen 45% in value since 2000. From 2000-2007 your retirement fund has depreciated 45% in value. Have you added 45% of its total worth to the fund in those 7 years? During those years, a growth rate of 6.4% is unlikely. Such growth is required merely to maintain the value of your retirement without adding to it.

Even if your company matches the money you put into your account you have only made $5%. If you had invested in gold from 2000 to 2007 you would have made and kept money value as the price of gold appreciated and also spared yourself from dollar inflation.

Let's say the price of the dollar depreciates by 30% from 2007 to 2010. Your retirement savings could be slashed by such a loss. If you invested in gold your resources would remain roughly the same. In such an environment the price of gold is also likely to rise, earning you wealth.

If you have $10,000 a year to invest in your retirement and you sent them to a retirement earning a hearty 4%, you would begin with 2008 at 10,400, minus 10% = $9,360[2008 dollars]. Add another $10,000 in 2009. 19360 + 4% = $20134. 10% inflation leaves you $18,120[2008]. You should be ahead money. In 2010 you contribute what looks like another $10,000, which are worth 81% of 2008 dollars. $28,120 + 4% = $29244. 10% inflation gives you $26,320 [USD2008].

So even after 3 years of earning 4% in your retirement fund, you've turned $30,000 into $26,320. If you had bought gold instead with those $30,000, you would have at least still $30,000, and more if gold appreciates in value during that time. London increased the estimated price of gold by above 10% for 2008 and 2009.

Tax incentives can be overlooked on normal wages, as the 16th amendment and the USSC state in numerous court cases that wages are not 'income', and the income tax is a direct unapportioned tax, which is unConstitutional. You do not need to pay income tax unless you run a business or are financially wealthy. Withdrawing money from funds you have paid into may invoke penalties described in the contract. You should be able to withdraw money from funds that are 'tax exempt' or sheltered because you don't need to pay income tax, or some may invoke penalties.

Morgan Stanley has issued a warning of recession. Alan Greenspan gave a 50% chance of a dollar crisis within the next 3-5 years about 2 years ago. The ex-CFO of the World Bank predicted a 60% chance of financial crisis within the next 2 years about 2 years ago. These predictions should be cited below. A major trading company working with the USG predicted zero market liquidity within 12-24 months beginning in Fall 2007, when the credit crisis appeared. The Federal Reserve and European banks printed some $62 billion of new money to put into the failing system, causing massive inflation. China has collected $1.4 trillion in dollars and has made plans to sell a majority of them. We are on top of a housing crisis, a dollar value crisis, and a credit crisis. We have a net loss of some $500 billion annually, on top of new expenditures in Iraq topping $2 trillion. We have a national debt of ~$9 trillion dollars, and just recently extended our credit limit from the previous ~$8.7 trillion to $9.8 trillion, which we are set to surpass before FY2009. We are looking at a rising cost of living, even if inflation were 0%, as health insurance, food, and fuel costs rise. British studies say peak oil was in 2006 and that oil availability will decline by 7% annually until the end of natural oil. A recession may be planned to coincide with this fuel use and growth scenario to extend the era of oil and energy control.

Dollar inflation is a serious risk because of our administration's financial practices. If this economic situation implodes we could lose the dollar. Forget inflation. We rely on global finance and economic networks to trade in dollars for much of our profit and supporting dollar value. Housing values might plummet as well. Those investing in real estate might find the value of their home dramatically downgraded. Investment properties could become a risky investment if made in terms of dollar value over time.

The money you have now could be soaked up and worn down by these economic disasters, forcing you to extend your employment or live in poverty. Gold and other precious metals will not depreciate in value during these disasters. You can invest in gold and other durable resources today to avoid disaster. Even dry goods will remain useful if you do not save for retirement or are not close to or planning on retiring. If you are already a pensioner, it may be worthwhile to stockpile some goods or keep your investments in more secure durabilities.

As our economy is eroding, so is our state. Enhance your knowledge of civil liberties and good culture. Enhance your social connections to help you and your community in the event of a crisis.