Shortly the Treasury Department will be deciding if one of the nations largest pension funds can cut retirees benefits by as much as 23%. “This is going to be a national crisis for hundreds of thousands, and eventually millions, of retirees and their families,” said Karen Friedman, executive vice president of the Pension Rights Center.
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Here is the thing... you can only count on yourself for your retirement...NO ONE ELSE IS GOING TO SAVE YOU. Do not count on your parents to leave you money...they might want to spend it, they might fall ill or they might need expensive long term care. Don't count on a pension whose management and solvency is in someone else's hand.
I recently did a loan for two couples who had similar financial situations. Both were about 70, both still had mortgages on the house they lived in, both had some credit card debt and both lived on social security. One couple existed solely on social security and a small income from a part time job. At the end of the month this couple had just enough money to pay their bills...no eating out, no trips...absolutely no money was available for anything extra.
The other couple had one rental property that was mortgage/debt free. After expenses for tax/insurance, etc. that property generated about $2500 extra a month for them in addition to their social security. That extra $2500 a month goes a long way to having a more enjoyable life. That $2500 a month is dinners out, a weekend away, ice cream for the grandchildren.
So please...save yourself....don't wait for anyone else to do it. Even if you have a pension buy just one extra property that you can rent out. Over time the tenants will pay off the property for you and when you are retired it could be the difference between existing and living!