Traditional retirement is becoming increasingly harder than it was a few decades ago. It used to be that between social security benefits and employer-sponsored pension plans, most people would be able to leave work at 65 and live out the rest of their lives in peace and relative comfort. This is no longer the case.
Hi, I’m Ron Paul, former Presidential candidate and US Congressman. If you follow the news, you’ll know that stock markets are near their all-time highs. The Dow Jones Index surpassed the 20,000 point mark for the first time this year, and even broke 21,000 points in March. That’s over 4,000 points higher than its lowest mark in 2016. The S&P 500 and the NASDAQ Composite Index are enjoying similarly fast growth.
Retirement is becoming increasingly difficult in today’s world. Social Security benefits are meager, and the program itself will eventually collapse under its own weight. That’s why it’s important to have your own retirement savings, such as an IRA or a 401(k). But inflation erodes the value of those savings over time. The money you save today won’t be worth nearly as much in a decade or two.
“I have been a long-time opponent of the Federal Reserve System. The Fed’s loose monetary policies have fueled bubbles and financial crises almost from the Fed’s inception in 1913. Prices have risen continuously since that time, and especially since the dollar’s last link to gold was broken in 1971. More recently, the Fed has engaged in policies of quantitative easing, creating money out of thin air to purchase financial assets…”
“While the stock market has been reaching all-time highs in recent weeks, those numbers are deceiving. Many experts believe that stock markets are in a bubble, and that the markets are on the verge of a crash. Bond markets, too, have been in a years-long bubble because of trillions of dollars of central bank bond purchases. Once central banks stop buying (and they will), the bond bubble will collapse too.” -Ron Paul, Former U.S Presidential Candidate
The recent announcement from the Federal Reserve that it plans to shrink its balance sheet has got some investors nervous that interest rates may be about to significantly increase. This creates a substantial risk for those who are invested in rate-sensitive products, particularly ETFs and mutual funds that invest in companies that borrow extensively.
“The effects of such a war would be deeply felt by those seeking to save for the future, those hoping for a happy and uneventful retirement…” -Ron Paul
The economy is very much influenced by the events going on in the world. The Brexit vote, for example, caused both the pound and the euro to weaken considerably, and the dollar to grow stronger by comparison. The announcement of a federal interest rate hike is nearly always met with a decline in the stock market. Everywhere you look, current events have an impact on economic factors around the globe.