Out of all the things the US Congress has done, this might take the cake. And as it stands, the United States government has outdone itself by…
* Racking up 15.6 trillion in debt, more than any other nation in history.
* Promising to pay out $62 trillion over the next several decades with money it doesn’t have.
* And allowing the Federal Reserve to print so much money that high inflation is guaranteed – and maybe even hyperinflation.
But if you thought those were bad. Just wait until you hear about ERISA, a law passed in 1974 that almost guarantees a coming stock market crash.
We mentioned the law in a recent email:
“The stock market crash triggered by 70 million boomers being forced (by law) to pull out their funds can happen any minute now.”
And it brought this question…
What do you mean forced (by law) to pull out funds from the stock market???? This was in Mike’s email yesterday about renewing and I don’t understand, please explain how a law would force us to pull our funds out of the stock market.
Phil M
Let me explain…
ERISA stands for the Employee Retirement Income Security Act of 1974. And it is the bill that brought us Individual Retirement Accounts, or IRAs.
Since then millions of workers have been stuffing money in their IRAs. That’s nearly 40 years of savings and wealth pouring into these accounts.
The Employee Benefit Research Institute says 1/4 of all retirement assets in the US are locked up inside IRAs. That’s a huge number.
And here’s where it gets dangerous. Almost half of all the wealth inside IRA funds are invested in the stock market (48%).
Why does this matter?
Because…
Once a retiree turns 70 and 1/2 years-old, starting the next April 1st they must start withdrawing at least the required minimum each year… or else they must pay a large penalty.
So what happens if a large demographic starts turning 70 all at the same time… like the baby boomers will starting in 2016?
Half the apple pie leaves the market! The 48% of IRA funds invested in stocks just start walking.
It is the definition of a mass exodus.
There are plenty more. Including the fact that you’re playing against computer algorithms created by Goldman Sachs.
Stocks are not a fair game, and savvy investors know it.
That’s why smart investors barely touche on stock investing. And instead introduces “Black Box” investment strategies of the ultra-rich to everyday people – just like you.
With a pending stock market crash and hyperinflation right around the corner, now is the best time.
Including lessons on buying and selling gold, earning 27% annual returns in real estate, lowering your tax burden AND a little-known strategy that actually PAYS you to borrow money.
It’s not too late to get started… but one day it will be.
Be sure to get these books to help you