It is great to see people standing for something. Although it is early in the development of the Occupy Wall Street movement, it may yet be a great thing for the country. There is a unique opportunity, not just to complain but to question the very foundation of what we count on Wall Street for.
Should America be counting on Wall Street for their retirement saving? Absolutely not. Markets will have ups and downs for a great number of reasons that don’t make any sense to the investor. Making money trading on Wall Street and making money investing as a retirement plan owner are two totally different things. The biggest difference is a trader can make money on both sides of a trade. A retirement plan investor loses every time their stocks go down in price.
In addition stock prices go down if the company does not reach the targets it set in its quarterly plan, even if makes a huge real profit. You lose as a stock holder and the company keeps the cash. Stocks like Microsoft that have been performing poorly over the last few years still they make tons of cash. Stock value goes down but the company does billions in sales profitably. Sound like a good deal?
There are investments in America that have offered profitable returns in America for the last 100 years. They don’t have all the sexy marketing. They just work and have better tax advantages.
America needs to go back to investing the way it did before 1978 when retirement plans were created. People would be a lot richer without the risk of investing in what they don’t understand.
Do the Occupy Wall Street protestors know that Wall Street is about to shrink on its own over the next 20 years because of population trends? Everyday 10,000 people turn 65 in America. This will happen everyday for the next 20 years. These seniors have more than 65% of the country’s wealth and they are moving it to safety because it’s all they have. In addition to that stat only 3 in 100 seniors has enough capital to retire comfortably. Those three are not taking any risk.
What happens when a country’s baby boomers take their cash out of the stock market, you ask? Japan happens! Their population is 20 years older than ours. When their baby boomers retired they took the money in the Japanese market with them. Their market is 75% below 25 years ago. We will most certainly see the same.
Occupy Wall Street should be asking what is the plan now that the world is making moves to remove the dollar as the favored currency in the world? All of the top world powers have been meeting in secret and not so secret meetings to remove the dollar and create one central currency under one global central bank. This would crush our economy because we are the largest debtor nation and our currency would be worth very little in the world.
Here is a fact to think about regarding the country’s debt. If you taxed every American at 100% of earnings the national debt would still not be paid off. This is the real cost of our 10 year war. It has completely drained our treasury.
The fall of the stock market, the exit of seniors money, the crushing debt, and the change to a global currency are things that are happening for sure. It is no longer conspiracy talk like when we were in college years ago.
If you are marching around with a sign while not seriously considering alternatives to the system itself, you are not making things better for you or your family. It time for these wonderfully intelligent, free American people to start to think!
Please let me know your thoughts! If you think this is worth talking about post it and resend it to your friends.
Wealth Wellness Wisdom
Manager of Wealth