Millions Brace for DRASTIC Pension Cuts

Public pension plans face a major funding shortfall. And with no solution in sight, the financial burden will be borne by retirees, taxpayers and future workers.

You are receiving this email because you signed up to receive our free e-letter, or you purchased a product or service from its publisher, The Oxford Club. If you are having trouble viewing this email, click here to view it in your browser. Brought to you by The Oxford Club Friday, September 2, 2016 SEC Lifts Ridiculous 82-Year Ban, U.S. Investors Celebrate For the past 82 years, one odd SEC regulation has allowed only the most elite investors to invest in exciting young hyper-growth businesses. But on May 16, 2016, with little fanfare, the SEC changed the law. Now it's opened up the kinds of life-changing opportunities where you could make as much as 100 times your money, over time, on some of the fastest-growing companies in the world. We call these huge gainers "100Xers." And to see how regular folks can find the NEXT lucrative opportunities, just click here. SPONSORED The $6 Trillion Pension Cover-Up Steve McDonald, Bond Strategist, The Oxford Club Watch the Video! Transcript Today's segment is a major slap in the face for all our public sector employees. Most people are aware that public sector employee pensions are in trouble. But new numbers indicate the situation is much worse than previously thought. How's $6 trillion in the hole for benefits that have already been earned sound? These aren't projections of what could be owed... They're benefits that have already been earned but haven't yet been paid out. And here's the amazing part of this tragedy: Most (but not all) of the problem is due to current actuarial practices, which ignore the long-term risk of investments held in these retirement plans. The result? Their calculations of projected pension liabilities and costs are way off. Let me explain how out of whack they are... All pensions are required to hold Treasurys. They can hold other securities as well, but they are required by law to hold a certain amount of default-free Treasurys. The 10-year Treasury is paying only about 1.57%, and the 30-year is around 2.23%. But pension plans, on average, assume a return of 7.5% on their investments. In order to compensate for the incredibly low yields on the Treasurys they must hold, they have to take more high-risk holdings (like stocks) to hit their 7.5% target. And it's this additional risk that current actuarial procedures are underestimating. When you consider the costs of the added risk and the low Treasury rates... the funding deficit is not the $1.5 trillion reported by public pension plans; it's actually $6 trillion. And in the long term, these risky assets could actually return less than the default-free Treasurys.   Will Trump DESTROY Social Security? During his campaign launch last June, Trump pledged to "save Medicare, Medicaid and Social Security without cuts." Does he mean it? Or is he saying what people want to hear? Earlier this year, the House and Senate passed a law preventing more than 28 million Americans from collecting on a Social Security benefit. Were you affected? I'll show you how you can claim some additional benefits in this free video: Watch This Free Presentation to Find Out How You Can Claim an Extra $10,224 in Social Security...   To make matters worse, the $160 billion in annual contributions to these plans doesn't even pay for the newly earned benefits; it just creates additional future debt. This is a nightmare on our doorsteps. And of course, it comes down to only two possible solutions: Either the retirees will take it on the chin or taxpayers will wind up picking up the slack. My gut tells me it will be both. These plans are in trouble, and every year they get deeper into trouble. Many taxpayers are aware that state and local government pension plans are underfunded... but they aren't aware of just how bad the situation is. And it's bad. If you're counting on a public sector pension plan to fund your retirement, I'd start putting aside a lot more money (more than you may have planned to save). Good investing, Steve   How to Get a "Cash Rebate" on Virtually Every Purchase You Make in 2016... Few people are talking about this... but the government just passed legislation that could give you cash back on nearly all your consumer spending this year. I'm talking about Christmas presents... lunch with friends... your hotel bill from vacation... even big-ticket items like a new car. "We have been trying forever to get something good for the middle class... and this is a jackpot," one U.S. senator told The New York Times. But there is one catch... You must start preparing now to maximize your 2016 payout. Details on how to do it here.   Recent Articles From Wealthy Retirement Recent Articles From Wealthy Retirement Wal-Mart's Media Frenzy Doesn't Bother Buffett... And It Shouldn't Bother You Either by Brian Kehm Thursday, September 1, 2016 Wal-Mart is making headlines for its recent crime epidemic, but smart investors will ignore the hype and continue collecting its steady, growing dividend. Read On... Read On... The Safety Net: Is an Impressive 34-Year Dividend History in Jeopardy? by Marc Lichtenfeld Wednesday, August 31, 2016 Exxon Mobil currently pays out more in dividends than it generates in cash flow, but things should turn around next year. Read On... Read On... Cooler Heads Prevail: Stay Calm This Election Season and Your Portfolio Will Thank You by Steve McDonald Tuesday, August 30, 2016 A Clinton or Trump presidency may rock our economy in the short term, but no single person can decimate it. Cool your jets to protect your nest egg. Watch Video... Watch Video... You are receiving this email because you subscribed to Wealthy Retirement. To unsubscribe from Wealthy Retirement, click here. Need help with your account? Click here. 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