06 Feb Life Insurance May Save You from Economic Calamity
Have you ever considered that Life insurance is is one dollar doing the work of many dollars. As one financial anyalists had pointed out that “Those dollars take care of your family or business or charity if you die too soon. Life insurance dollars are self completing if you become disabled and employ waiver of premium. Life insurance provides dollars if you have a critical illness like a heart attack, stroke or cancer. Many policies have terminal illness benefits that will pay even before you die so you can help those you love that are left behind to arrange their affairs in the most beneficial way. Finally, the most important benefit going forward will be the long term care benefits provided by life insurance policies. Insurance companies have struggled to properly price long term care policies, but have provided quality long term care benefits on life insurance policies that they can afford as companies.”
Life Insurance , as a product, will be vitally important in the decades ahead.
If the debt increases again, and it will, it should not take long for the world to be $400 or $500 trillion in debt. We are very close to an economic calamity.
If the debt increases again, and it will, it should not take long for the world to be $400 or $500 trillion in debt. We are very close to an economic calamity.
Your original $100,000 would only have doubled over the last 30 years for an average return of around 2.5 percent annually. That is before taxes and fees.
If the market loses 50 percent in the next downturn, you would only have 60 percent of a double in 30 years for an annual average return of approximately 1.5 percent.
If we can get to every grandma and grandpa in America and show them how their dollars can be leveraged without giving up control of their money we can dramatically offset the damage being done by our governments.
You can get the foundational information for this discussion at the website www.usdebtclock.org. It shows there are currently around 50 million people on Social Security. We are struggling to come up with the money to provide Social Security and Medicare to these 50 million people.
Around 13 years from now, in the year 2030 we will have between 80 and 90 million people receiving Social Security and Medicare with 70 percent of the Baby Boomers turning 65 between 2022 and 2029. These requirements occur in a little more than a decade. Where will the government get the revenue to meet those financial requirements for Social Security and Medicare?
Do you know that 50 percent of Americans arrive at death or retirement with nothing saved?
Do you know that 70 percent of Americans arrive at death or retirement with less than $28,000?
Did you know that after an eight year bull market, 90 percent of Americans still have less than $115,000? And, according to Fidelity Investments the largest 401K provider by triple, they just reported that the average 401K balance at their firm is $92,500?
If you live to age 95 and you only have $92,500 in their 401K, what kind of retirement will you have?
If you have money, if the government will desperately need more revenue in the future, will they get that money from the 90 percent of Americans who have no money or from the 10 percent who do? If you’re in the 10 percent are you okay with the government coming and taking your money to take care of people who were not willing to save and invest the way you did?
Our goal is to bring attention to these issues. Don’t you want to be protected from the harm they would cause.
Here are some of the bubbles we are concerned about:
Housing Bubble – The United State, Canada and China are all facing serious housing bubbles. China’s is considered to be the biggest housing bubble in the history of the world. Housing prices in Canada, especially in Toronto and Vancouver are off the charts. There is also an enormous amount of speculation in the US housing market. Many analysts are predicting crashes.
Debt Bubble – The whole world is in debt up to their eyeballs. This will not diminish. It will increase dramatically. I don’t want to be repetitive but China appears to be the biggest debt bubble in the history of the world. Nobody is sure what will happen when this debt bubble bursts; but all agree that it will not be good.
Corporate Debt Bubble – In the next three years quite a bit of this debt has to be refinanced. Quite a bit is expected to default. It is believed there will be $1.5 to $2 trillion in losses in the next three years. What impact will this have?
Commercial Real Estate Bubble – How much commercial real estate needs to be refinanced in the next four years? Almost all of it! How many of these properties won’t appraise out because they don’t have tenants? How many vacant units so we see all over the country? This will be astonishing!
Silicon Valley Bubble – Everything in Silicon Valley is overpriced and when the crash comes, an area like this will be devastated. Bubbles usually burst in a bigger fashion than they did previously. They essentially revert to their mean prices.
Tech Bubble – Many analysts fear we are seeing another bubble like the one that burst between 2000 and 2002. Many stocks have prices that are not supported by real earnings. When people start to realize this they will head for the door very quickly.
All of the above is complicated by the fact that stocks are being purchased using more margin than ever in history. Now over one half trillion of margin is being used. Can you spell disaster?
In the United States we have very serious issues to be concerned with. Student loan debt is now at $1.4 trillion and rising. More and more of that is in default. Over one million people have not paid anything on their student loans in over a year.
Auto industry debt is now at $1.1 trillion and rising. Much of it is subprime debt. That will never be paid back. It is conceivable that we will have to bail out General Motors and Chrysler again and this time we will have to add Ford to the list.
Credit card debt is now over $1 trillion dollars. We are essentially back to where we were before 2007 and 2008.
Many people now have enormous medical debt because of the much higher deductibles and lower co pays on health insurance. This amount will increase exponentially as we continue to diminish the quality of our health insurance.
Finally, pensions in our country are a mess. Chicago’s workers pension only has enough money to last seven more years. Most pensions at the state, county, city and municipality level are dramatically underfunded and getting worse by the minute. I believe Americans will go crazy when they find out what terrible financial shape all of these pensions are in. I even believe this information could be the surprise contributing factor to the next downturn.
Let me be very clear!! None of this is bad news. None of this is good news. It’s only news. There is no end of the world scenario here. If you plan and prepare using this information it is the opportunity of a lifetime. If you don’t plan and prepare your finances will be devastated.
If you plan and prepare using this information it is the opportunity of a lifetime.
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