There are three ways that the purchasing power of pensions can be robbed.
Delegates at our seminar center… like minded souls sharing ideas about earning beyond pensions during a coffee break.
The First Pension Theft. The first way pensions can be robbed is through underfunding due to insufficient contributions. A pension is a promise. The promise should be backed up by assets that can generate a return. If a business (or government) making the promise does not earn enough money to make adequate contributions then the pension fund simply will not have enough money to meet its promises.
Excerpts from a recent Reuters article “Feds fret over underfunded corporate pensions” by Josh Boak shows that this is a serious problem when it says: For many Americans with pensions, employers have not set aside enough money. Corporate pensions increasingly look like an economic time bomb for the government.
Federal officials have assumed responsibility for hundreds of troubled pension plans in recent years. Those takeovers could accelerate as baby boomers start to retire, with taxpayers potentially needing to pay tens of billions of dollars to keep the private plans alive.
“This is going to have massive implications for the country but particularly following on the heels of the latest economic downturn,” said Richard Shea, a lawyer specializing in employee benefits at Covington & Burling. “Pension benefits are being frozen and closed down at an alarming rate.”
For many of the 44 million Americans with pensions, employers have not set aside enough money to provide them a stable income through retirement. Publicly traded companies face a combined pension shortfall of $458 billion, according to a recent report by the bank Credit Suisse.
The cost of rescuing these plans has saddled the federal Pension Benefit Guaranty Corp. with a $26 billion deficit, the highest in its 37-year history. The situation will likely worsen as more companies decide they can no longer afford their pension commitments and stick the government with the bill.
“This is a death spiral,” said a representative of the pension industry. “It may not happen over the course of the decade, but we end up in a situation where we need a taxpayer bailout.”
The problem has become severe enough that the director of the Pension Benefit Guaranty Corp. has publicly campaigned against American Airlines — which filed for bankruptcy last year — for trying to end its retirement plan and dump its obligations on the government.
The article went on to add that American Airlines alone was trying to shed pension liability on 130,000 employees.
The Pension Benefit Guaranty Corporation is funded by insurance premiums from businesses and assets of pension plans that it absorbs. This agency is deeply underwater with a record deficit in 2011 of $26 billion. The current estimated liabilities are $107 billion but assets are only $81 billion.
The American Airlines pension shortage is over $10 billion, so just this one bankruptcy increases the Pension Benefit Guaranty Corporation shortfall by 40%.
We’ll look at the other two forms of pension theft… lowered return on assets and destruction of the pension currency in upcoming messages.
These three forms of pension theft mean that many pensioners will be lucky if they get the full benefits they’ve earned over their careers. Almost no pensioner can depend on getting the full purchasing power of their pension.
An solution to this problem is a way of doing something you love that earns beyond retirement through a service or a real asset.
Delegates at our Writer’s Camp enjoy talking with each other. They can come hash around ideas about their passions as well as writing.
Even obscure passions and pleasures can create income.
Take these fabric designs as an example.
This excerpt comes from the Country Living article entitled “Making a Country Living – How a mom of six crafted a fabric and accessory business from home.”
Anna Maria Horner has been fabric obsessed most of her life. At age 5 she was already into her mom’s scraps to fashion Barbie dresses. Now a mother herself (of six)the 37 year old designs textiles – as well as everything from pillows to purses – from her Nashville home.
After running a clothing and home goods store for three years she closed shop to focus on creating her own designs. Though it took seven years to land a manufacturing deal for her fabrics, Horner stayed afloat by selling handmade totes and dresses to local boutiques.
She says: “if you have fun, it shows in your work.”
Her company grossed $250,0000 last year.
The photo above comes from the website of Anna Maria Horner which is linked below.
A quarter of a million a year from home is pretty good… but more important is the fact that Horner IS fulfilling her passion.
Those who have a passion similar to Horner’s but want to live in Ecuador can write about Ecuadorian fabrics, designs and art.
For example we helped one reader learn how to earn in art by creating artistic business cards and professional printing.
These efforts were especially enjoyable for us as they helped the artist, Montero, (below) and several other starving artists in Otavalo, Ecuador.
Montero lives in Otavalo.
Nature Art by…
I once did a study of successful people and this search clarified the fact that most millionaires make their money in business doing something they love. This discovery led to a study of rich businesses, ones that generated everlasting wealth. Here are five of seven secrets I learned about these businesses:
Secret #1: They must enjoy the multiple effect. A product once created must produce profits again and again, almost on a never-ending basis. Each investment made needs to make huge returns.
Secret #2: They need to be greater than their owner’s time. They must produce income even when the owner doesn’t put in day-to-day effort. You may already be wealthy or earning a high income. You may not even need another business or extra income, but some day you might. One surgeon explained it this way. “I am making a fortune because peoples’ lives are in my hands. Once my hands are no longer steady, my income stops. My entire financial well being will then be in someone else’s hands!”
Secret #3: These money making systems should be enjoyable and fun! Sadly most people make money for the sake of making money. Many spend their lives working, just to have a few precious hours having fun. The most important fact I learned about making and keeping wealth was that those who were richest absolutely loved what they were doing! Money was of secondary importance to their effort. And as things are, this means they actually ended up making more money!
Secret #4: These money making systems need to be flexible. No matter what the economy brings, your ability to make money should work regardless of inflation, recession or even depression.
Secret #5: These businesses usually start small, but grow quite large. I learned that good money systems work for large or for small amounts and can be operated on either a full or part time basis. Most businesses start with a learning curve. During that time it is essential they are small. Once the lessons have been learned and the system is operating properly, then it needs to grow for larger and larger returns.
These secrets all show why writing is such a good way to create extra income.
Before discovering these secrets I had my own micro business but to be honest I could never get ahead. I was almost penniless, in debt and living from month to month, check to check. Then I discovered these secrets… and used writing to apply them around the world.
Since then our international micro businesses have brought in millions. We gained all the physical possessions we desired, plus more than enough money in the bank.
We do not have one penny of debt and we have leisure time… though when you love your business… why not work?
Most importantly, we have fun and feel that we have accomplished something beyond just making money every day! Merri and I do what we love and have learned that through our writing we can accomplish far more important goals, gain self fulfillment and be of service to our community. In short we can help make ourselves and the world a better place. So we do not worry so much about our pension.
Among our greatest thrills is being able to help others through foundations we have started that help the environment and the poor.
More importantly we have the freedom to do all this from our many locations (some are remote-you might have seen the pictures) that we really enjoy.
You too can have the freedom to do what you love from any place you like, even operating (actually preferably) from your bedroom if you wish.
What do you love? Rare cars? You can make a fortune creating a business around them. Do you prefer fine art? Or do you love beautiful jewelry, coins, gems, real estate, furs, model railways, dolls, scientific equipment, war memorabilia, old and rare books, or whatever? Do you prefer social subjects rather than objects?
Are you concerned with the environment or humanitarian problems, with crimes, war or poverty? Would you like to help wipe these social problems out in the course of your business?
Are you a golfer? Do you love to travel? Why not make all kinds of money in a global business writing about golf?
Would you like to help the world be a more spiritual place, help people get along better together? You can do something good for the world, increase your income and live wherever you please in the process!
Whatever your interest you can learn how to earn extra by writing (and/or publishing the writing of others) about that passion.
Also, imagine what an international business means to your world travel. Every trip you take can be tax deductible! You can honestly write off every trip that is related to your business. Every journey can become a research oriented adventure and a TAX DEDUCTIBLE EVENT.
As a writer, you’ll have one of the most respected and tax protected businesses in the country. Other benefits come in the form of legal protection. The First Amendment to the US Constitution provides for freedom of the press… the right to circulate opinions in print without censorship by the government… the right to publish newspapers, magazines, and other printed matter without governmental restriction and subject only to certain laws such as those relating to libel, obscenity, and sedition.
There is such an abundance of opportunity that Merri and I have created an entire system to help you write and publish.
We began our writing at home. Today, though we have tens of thousands of buyers and have made millions, we still work at home on our remote farms in Florida, North Carolina and Ecuador and have people to help. Our partners live where they love and work with us through the internet.
You can do the same with a system contained in an online correspondence course called “Self Fulfilled – How to be a Writer and Publisher”. See details here.
The pension robbery is real and the thieves not likely to be caught because no one person or group is to blame.
The world faces a faltering job market and shaky economy with a crumbling infrastructure at a time the world is shifting from a global economy dominated by the USA… to one where business… and affluence are more spread around the world. This affects kids coming out of school… bread winners with growing families and those of us who are at an age where we can (or expect to) retire. Everyone is involved.
This economic shift, an aging global society and massive debt in most of the Western world almost guarantees that the purchasing power of currencies will fall… in most of the industrialized, debt ridden nations.
The more these problems create change… they also create opportunity especially for writers who can help readers learn how to adapt to the evolving economy and world.
See below how to get our online writers and publishers course free when you attend a Writer’s Camp at our farm.