Will you be one of the tens of millions of people who may have no money in their 401k? Wow sounds unbelievable right but before you stop reading this article ask yourself these three questions.
How much have you lost in your 401k since 2008? Is all your wealth tied to paper assets including savings governed in dollars? If I am only 10% right on my statement of 10 million people losing everything do you want to be part of the 10%?
Now please do not confuse this article with a doom and gloom report and I did not state those questions as some marketing ploy. The truth is many people will not retain any value if they do not take precautions now to protect their money. This article is dedicated to you doing just that.
As we tackle and answer the questions I pose in the previous paragraphs you will see how to invest and really diversify, instead of losing all your money in your 401k and other paper assets.
So how is your 401k really doing? As I referred to in the first paragraph a great deal of real money has been lost since 2008 in many 401k plans. Why many financial planners quote it's the time to get back in and back their ill advice by the Dow being 12,000 (only 3,000 less than the high in 2008) they are not sharing vital information.
They are not informing you of the potential for a market decrease in stocks due to the baby boom generation retiring in mass. What also is not being expressed is that the generations set to support the amount of retirees do not make up enough people to cover the population that is retiring.
Even if everything remains constant and nothing changes the stock market will gradually decline just on sheer demographics. If you add in the global problems and lack of jobs now it's impossible not to avoid another sever market correction. This will affect your 401k dramatically and unlike stocks 401k plans can go to zero since they are derivatives of stocks. The more deluded anything gets the more volatile.
Now let's look at your savings, treasury bonds, municipal bonds, IRA plans and the like. Saving money and government back debt would seem safer right? But what happens when there is nothing backing the currency? This is the situation we face now. Once a country does not have anything backing its currency there is nothing stopping them from printing bills into oblivion.
The United States has done just that and to make matters worse that they also incurred massive debt in the process. Saving money makes no sense when the purchasing power of the currency buys very little. In fact if you look at the rates of return they are providing you for saving money in the bank and government back debt you may even think they are punishing you for being prudent.
Cash deposits or CD's pay less than 1% and government back debt is less than 4%. Will you be able to survive in retirement with these kinds of rates?
Ok enough of the bad news what can you do ? Well one is to have an alternative to traditional paper asset plays. What I am referring to here is purchasing something they can not print and that is Gold and Silver. In fact silver may the best undervalued investment of all time.
You may also consider real estate and begin to acquire small rental properties. Again your intentions is to hedge yourself from assets that you can not exert some level of control.