2011 is a big year in the financial world.
Mike Dillard’s 90 minute presentation of the need for The Elevation Group included some details that I had check out for myself. Let’s face it, this wouldn’t be the first time that people have used ”doom and gloom” to scare people into buying something.
However, I have not come across any details yet that do not have verifiable sources to back up what is being taugh in The Elevation Group. One of the details that caught my attention was the coming crash of the 401k plans that millions of people, around the world, will be counting on to use as a retirement account.
Congress approved that addition of the 401k plan to the IRS code in 1978. At the time this was created to make up the differences in pensions plans that were projected to have difficulties, but there were some problems built into the system that most people were not aware of. Even today, these problems are hidden from sight for most people, but things are about to change.
One of the first difficulties of this plan is that most people are not experienced enough to invest wisely in the stock market. (We will not get into the people who decide to opt-out of investing in their 401k… you know who you are.) In the past, most people had “defined benefit” plans. In other words, you would recieve and defined amount of monthy income from your companies pension plan. While it may not adjust for inflation, at least it was understood from the very beginning that you needed to put a certain amount of time into the company in order to revieve the benefits promised to you at retirement. This is a very expensive process for companies because of taxes and because of the requirement to potentially cover all employees.
Then came the 401k. The company could not put the responsiblity of investing on their employees. This is also a “defined contribution” type plan. In other words, you have a specified amount of money that gets removed from your net pay to be applied to your retirement fund. It is placed in stocks that are reletively “safe” and the market determines your return on investment.
Market goes up, and your 401k goes up. Market goes down, and that darn 401k goes down right along with it. But since the market always goes up over time, this is a good plan, right? Enron employees may feel differently about this, along with millions of Americans to have lost hundreds of thousands over the past 5 years.
The Elevation Group talks about a crash that is on the horizon with the 401k plan.
One of the little known facts about a 401k is the mandatory withdrawals once the age of retirement is reached. By law, once to you reach the age of retirement and it is time to start using that 401k, you are required to sell 6% of your 401k every single year. This may not be such a bad thing if it weren’t for one tiny little detail…
Over 70,000,000 Baby-Boomers will begin to retire starting this year, 2011. The national cesus beaurau has deemed that the baby boomer generation starts at the year 1946 to 1965. Add 65 years to 1946 and you get 2011! So starting NOW, there will be another 1,000 new retirees every for every single day that passes.
What was the primary investment vehicle for the baby-boomer generation? IRA’s, 401k’s, and the dreaded savings account. As the market begins to be flooded with peopel selling off their investments for retirement, what will happen to the price of stocks? Historically stock will drop in price, which will devalue all of those 401k’s in the market.
What is going to happen as people begin to see the value of their 401k drop every single day that it is in the market. This will create a mad dash for the door as people rush to protect what is left of their retirement money.
The Elevation Group teaches how to keep your investments 100% safe during the good and bad times in the market place. In fact you can become quite wealthy during a market crash if you know where to place your hard earned money. We all know that if you are doing what the news says, you are already too late and the money has already been made.
If you are concerned with protecting your money and want to know how to be immune to drops in the market, you may want to check out what is going on in The Elevation Group. Mike Dillard has posted, in detail, that steps and strategies he is using to protect his money, and how to use it to create more wealth for investing.
There is a money back guarantee for an entire month, so there is nothing to lose a whole lot at stake. Don’t get stuck on the wrong side of the “Greatest Wealth Transfer In History”!
