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The Best Defense Against an Uneasy Pension Future

HeroicInvesting.comGiven recent collective bargaining strife in Wisconsin and Ohio, and the accompanying union protests, it”s not unreasonable for first responders of all types to be a little wary about the future of their retirement plan – pensions if you want to call them that. Regardless of which side you come down on this political firestorm, here are the basic facts. State legislatures are beginning to realize the pension promises made to previous generations are unsustainable. Therefore, you should not be be surprised if they continue to:

1. Enact laws raising employee contributions
2. Raise the retirement age
3. Create a weaker pension program for new hires
4. Transfer employees from defined benefit plans to defined contribution plans

Despite what union leaders would have you think, your state government does not hate you and wish you would fall over dead. The problem that has arisen is they simply do not have enough money to pay for the benefit heavy pension promises of the 1980″s and 1990″s. Politicians are famously short-sighted and the buck has been passed along to the point where it”s difficult to pass it further.

Where does this leave the rank-and file worker? In a pickle, no doubt, unless…

Unless he or she smells the roses and realizes it is economic suicide to trust your future to anyone but yourself. Whether you want to read it or not, the writing is on the wall. Unless you plan to retire in the next fifteen minutes, your pension is likely going to only be a shadow of what you expected. You can whine about it but what”s that going to get you? If the money”s not there, it”s not there.

What you need to do is throw your efforts into developing an income property portfolio that makes your pension obsolete. How? A good first step would be to get yourself to Phoenix, Arizona, on May 20-22, 2011, to participate in Jason Hartman”s Phoenix Foreclosure Tour. Read more about it HERE. This is a great market to become a landlord for the first or twentieth time. Try this. Instead of obsessing about union leaders and politicians who are completely beyond your control, obsess about completing a property deal that will put cash in your pocket every month for the rest of your life.

Now that”s a pension plan to get excited about.

The Heroic Investing Team

Flickr / aflcio

 

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