Thu 5 Oct 2006
Fed warns about Boomers - yet again
Posted by RichSlick under Financial Safety, Real Estate
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Once again the Federal Reserve Chairman issued a warning about the looming crisis in the 78 million retiring boomers and once again, the issue has been glossed over by most of the media. Reading some of the quotes from Bernanke himself,
Unless Social Security and Medicare are revamped, the massive burden from retiring baby boomers will place major strains on the U.S. budget and economy, Federal Reserve Chairman Ben Bernanke said Wednesday.
And also,
As the population ages, the nation will have to choose among higher taxes, less non-entitlement spending by the government, a reduction in spending on entitlement programs, a sharply higher budget deficit or some combination thereof, Mr. Bernanke said.
All I can suggest to everyone at this point is to make some plans to invest in Real Estate somewhere outside the U.S. If you can afford to purchase a vacation/getaway home in the Caribbean, Central America (Costa Rica, Honduras, Panama, etc) or anywhere else it may prove to be the wisest investment you’ve ever made.
I told this to a friend recently and his response was, “well what if the government nationalizes your property or seizes it?” and my response was “well what if you have all your money tied up in your 401k and the US government taxes it at 70%?” or “what if the Dow collapses on the burden of heavy taxation?” Are you going to feel better that you lost all your money because you lost it in the United States?
I’m not suggesting you take ALL of your money and send it over to Panama; I’m suggesting you have a backup plan and an exit strategy if things become dire.
The one group in the entire United States that knows more about financial crisis and policy are the people that make and lend the money – THE FEDERAL RESERVE. The Fed has just repeated warnings that we heard from Greenspan for the last few years. It’s a big red flag that things aren’t looking too good here in the future. Of course, people live EVERYWHERE in the world and I have yet to read about anyone losing their property from outright seizure unless they were criminals or failed to pay their debts. Of course, common sense is you’ll avoid places in political turmoil but there are plenty of places to invest.
Don’t say you weren’t warned (repeatedly)!











October 5th, 2006 at 9:54 am
Rich,we think so much alike,its scary.I tell everyone who will listen that the economy is poised for a crash.I have quoted Greenspan many times in the past to make my point.
I have considered foriegn real estate too,but that is so out of my league at this point.Douglas Casey strongly encouraged this in a couple of his books.
To prepare for the economic collapse,I’m trying to concentrate on turning my 18 acres into a self-sufficient hobby farm.I’m a long way from self-sufficiency right now however.
Keep up the good work.
October 5th, 2006 at 10:13 am
Thanks C. There are many people aware of the situation, when I speak to friends & family they acknowledge the problem but then go and bury their heads in the sand - I just don’t understand it!
I too have contemplated buying some solar panels and becoming as self-sufficient as possible but the reality is we will likely face heavy taxation (sales taxes, property taxes, income taxes, “fees”, etc) and at some point in the near future that it may be easier to just “pull out” than deal with the mess.
I don’t own foreign real estate now but it’s likely I’ll take the plunge within the next year or two if all goes well.
The main problem has been a world wide over appreciation of property right now but that will change soon.