A year ago, Matt Drudge of the Drudge Report Tweeted “Have an escape plan.”
For anyone an escape plan is crucial. If you are over 40, if you do not have one, you are living on borrowed time.
What it is possible an economic disaster in the next couple of years is avoidable, it is the most likely outcome.
Right now, labor force participation is at record lows. The number of Americans employed is the same as it was in 1978. That is 35 years ago. The economic depression has destroyed 35 years of economic growth and thanks to those folks in Washington, the damage is not all done.
If you are a retiree or approaching retirement age, the future is not pretty. Medicare is supposed to run out of money in 2026. Allegedly Social Security will run out of money in 2033. Neither of those figures take into consideration the massive increase in payouts that will come with Amnesty.
For those relying on government or private pension plans, the news is grim. While pensions are in theory guaranteed by the Pension Benefit Guarantee Board, that organization only had funds to absorb two or three major pension funds that collapse.
The future may not be that bad or it could be worse.
The question is, what are you going to do about it?
The government, through incompetence or design, is making it harder and harder to survive in the middle class on a job or a pension.
So what do you do?
Some people advocate going overseas for retirement. Their dollars will go further there and if there is more social unrest in America, they can avoid it.
What happens if you take your wonderful retirement in say Belize and suddenly you don’t have a pension or social security anymore? How far will your dollars go when you don’t have any dollars?
The escape plan is for everyone to start their own business.
The tax code is still skewed in favor of business and small businesses are exempt from many of the regulations that are choking big business. For example, businesses with less than fifty employees are exempt from Obamacare.
What kind of business?
That’s up to you. The possibilities are limitless. These can be businesses you work full time or part time. Age is no limit. If you are worried about your age, partner with one or more people who are younger than you.
Unfortunately the economic storm clouds are showing up on the horizon again. Anyone who is simply holding on to their job with the idealistic belief that will save them is living in a fantasy world. People will get laid off. Even government employees will lose jobs. Big businesses will fail.
It really comes down to one simple question. Do you want to be in control of your own fate or do you want to leave it in the hands of someone who has no interest in your future.