40% of unemployed are now permanently unemployable?

So is the economy recovering yet?  I guess it depends on who you talk to.  And will all of those people who lost their jobs in the current recession eventually go back to work?  Well…the Economic Cycle Research Institute (ECRI) isn’t so sure.  Here is what Lakshman Achuthan of the ECRI had to say during a recent interview when asked about high unemployment:

“That, unfortunately, won’t change even as the rate of job losses continues to improve.”  Achuthan figures 40% of the unemployed, particularly in manufacturing, are permanently unemployable. “So, those people are displaced. The recovery is happening. It’s very real, but the economy doesn’t want their skills for one reason or another.” He says, “it’s very real but economy doesn’t want their skills.”

Experts suggest $1 million isn’t enough to retire on

Yahoo is just full of great articles today.  Here is an excerpt from another one:

“Conventional wisdom says that you need to save $1 million for retirement.

That target may be easy to remember, but it falls short of the true cost of what’s required for post-career comfort. Longer life spans, the threat of inflation and the uncertain future of Social Security benefits make this long-touted savings advice inadequate for most, advisers say.”

If you do the math, $1 million invested at 4-5% equates to a $40-50k per year residual income.  How long does it take to save $1 million, if you could do it at all?  Pretty scary to think about, isn’t it? 

More proof that our system is broken

Here is an excerpt from an article I found this morning on Yahoo, and this is exactly the message that we’re trying to convey.  It’s titled “7 Stressors Sapping the Middle-Class.”

False expectations. For the past 40 or 50 years, Americans have lived by a series of unofficial tenets: A good education guarantees a good job, hard work will bring prosperity, and 40 years of 40-hour-a-week work earns a comfortable retirement. Then, maybe; now, not so much. Workers who believe that somebody owes them a comfortable life just because they try hard are risking bitter disappointment in a Darwinian economy, where there are likely to be more losers and fewer winners than we’re used to. The winners will be those who learn how to adapt, expect nobody to give them anything, and are prepared to work harder in the future than they did in the past. That’s how it was in America before anybody ever heard of the middle class, and it may be that way for a while again. The real middle class–the true bedrock of the nation–will be able to handle it.

The good news is that there are options, you simply need to have an open mind and a desire to make a change.  Visionaries Worldwide is helping people to address these issues by providing education on personal development, financial literacy, leadership and entrepreneurship.

The home-based business phenomenon!

Home-based businesses are the trend of the future. An increasing number of people are now choosing to work from the comfort of their own homes, especially in the current recession where millions of jobs have been lost.  Many are tired of office politics and being forced to give up their weekend for the good of the company, and for some, it’s their only option!  A home-based business is a great chance for many people, especially parents of growing kids, to strike a balance between career and family.

Working from home is now viewed by many as their ticket to realizing their dreams. The amount of money you could earn is proportional to your own performance, without waiting for the boss to give you a raise or promotion. Whether your home-based business provides you with the sole means of support or just generates an extra stream of income, its earning potential relies on your self-motivation and dedication.  Most people start out working their business in their spare time but when the income from their home-based business surpasses that of their regular job, many opt to quit their 9 to 5.  Isn’t that the unltimate dream for most?

What is Visionaries Worldwide?

Dusty Ely with an introduction to our new venture.

Building our Vegas Team!

 

Out for drinks

Caesars Palace

Dr. Dan Ribley motivating the crowd

Visionaries Worldwide

 

Visionaries Worldwide is a premier coaching and training network dedicated to helping people achieve financial independence.

Visionaries Website

Join Visionaries Worldwide Today!

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Social Security…the biggest Ponzi scheme in history?

Most of us are now familiar with the infamous Bernie Madoff, who bilked investors out of billions through one of the largest Ponzi schemes in history. But was it the biggest?

First, what is the official meaning of a Ponzi (pyramid) scheme? The US Securities and Exchange Commission website says this:   

“A Ponzi scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors. Ponzi scheme organizers often solicit new investors by promising to invest funds in opportunities claimed to generate high returns with little or no risk. In many Ponzi schemes, the fraudsters focus on attracting new money to make promised payments to earlier-stage investors and to use for personal expenses, instead of engaging in any legitimate investment activity.

With little or no legitimate earnings, the schemes require a consistent flow of money from new investors to continue. Ponzi schemes tend to collapse when it becomes difficult to recruit new investors or when a large number of investors ask to cash out.”

SEC Website

Will you be prepared for retirement? Scary statistics!

Throughout my 15 years in the financial services industry I have seen a lot. The most significant trend? In general, people are unprepared for retirement. The following are some statistics compiled from studies conducted by the FDIC as well as various investment firms:

- The average American is 90 days away from bankruptcy.

- The average bankruptcy could have been avoided with an extra $350 per month.

- 97% of Americans will be dependent to some degree on family, friends or the government in retirement.

- A 65 year-old couple retiring today has a 63% chance that one of them will live to 90 years old and a 1 in 7 chance one of them will live to 100. As life expectancy increases, today’s retiree will spend about as much time in retirement as they did in their careers!

- A 65 year-old couple retiring today will need approximately $240,000 to cover medical expenses in retirement even with Medicare coverage.

- Rule of 219 = 2 people x 3 meals per day x $5 per meal x 365 days per year x 20 years = $219,000 just to eat in retirement.

- $240,000 + $219,000 = $459,000 just for healthcare & meals (see previous 2 stats)

- The typical pre-retiree household (age 55 and up) has a retirement savings of $60,000.

- Another survey estimates that 1 in 5 pre-retirees age 50-64 has less than $5000 in retirement savings.

- As of July 2005, more than 30 million retired workers were receiving Social Security income, with benefits averaging $960 per month, or less than $12,000 per year. Although Social Security is designed only as a supplement to other sources of income, during 2003 the majority of senior Americans relied on Social Security as the source for at least 80% of their income.

The good news? There are options and Visionaries Worldwide can help!

Sources: FDIC Outlook, Social Security Administration, US Department of Labor, US Department of Health & Human Services