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Unfair Advantage looks to Warren for fatherly investment advice. On top of that, the companies he controls (Wells Fargo, American Express, General Electric, and Goldman Sachs) received billions in taxpayer bailout money after the crash. Is this Warren Buffett’s real secret to being the world’s smartest investor? Also during this crisis, millions of people lost their homes to foreclosures. Millions more are upside down, which means their homes are now worth less than their mortgages. In 2010, Boston College released a report stating that Americans are $6.6 trillion short in their retirement funds. Their study claims that losses in retirement accounts and home values will leave Americans short of money for retirement. If they cannot afford to retire, what will they do when they can no longer work? Push a shopping cart and live under a bridge? What happens if their health fails? Who takes care of them? Milliman, Inc., a Seattle-based consulting firm, reported that defined-benefit pension plans of the 100 largest corporations lost $108 billion in August 2010. That is a huge loss in just one month. This means Americans who felt safe because they worked for a company that had a DB plan, a defined-benefit pension plan are in trouble. They might not receive that guaranteed paycheck for life. Most workers in the United States have a DC plan, a definedcontribution benefit plan, such as the 401(k). A DC plan means that their retirement depends upon how much is contributed to the pension plan. If there is nothing in their plan, they receive nothing. If the plan runs out or is wiped out, again they receive nothing. If the stock market is down, workers with DC plans are in very big trouble. Rather than retirement being a dream, retirement might turn into a nightmare. CalPERS, the California Public Employee’s Retirement System, is an agency of California’s government and manages pension and health benefits for more than 1.6 million public employees, retirees, and their families. In other words, there are a lot of people counting on CalPERS for their financial security. 25

Profile for Jamiel Cotman

Unfair advantage ebook  

by Rich Dad, Robert Kiyosaki

Unfair advantage ebook  

by Rich Dad, Robert Kiyosaki

Profile for jfcotman
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