The idea of a company pension a thing of the past, even a government or union pension is no sure thing. The problem is that we are awash in debt. We have been spending more than we take in for decades. Our current economic plan is unsustainable. If you are counting on Social Security, then you are really living on the edge. It is no secret that Congress spent that money a long time ago. No matter where you look, the American economic system is living on borrowed time.
When we finally tip into the abyss is anyone's guess. I am not a fortune-teller, but I can tell you what will happen when we finally figure out nation is broke. The dollar will collapse it will soon be worthless overnight. There are plenty of historical examples of this happening. Argentina is a recent reminder of the catastrous repercussions of a sovereign default. The stock market will collapse. Imagine what it will be like if everyone wants their money out of stocks at the same time.
I can draw up a dozen plausible theories that can explain why we are heading towards an economic meltdown. How it happens is largely irrelevant. What matters are the steps that you take before the crash. What assets will be worth anything in a panic?
Some people like Gold as a hedge against chaos. I also like Gold, but is it really that useful? Gold is a potential substitute for cash. The problem with Gold is that it does not produce an income by itself. Gold will go up and down in value relative to any fiat currency, but it does not produce value.
I favor real estate as an investment. Real estate has created more millionaires than any other investment in American history. Real estate markets will go up and down just like any other investment. Where real estate outpaces other investments is that it produces an income without being consumed. You can own a rental house for decades and it will still be there producing cash. You can leverage your money to increase your purchasing power. All you need to buy real estate is a down payment not the entire amount. No other asset class combines the safety and long-term potential of real estate.
I am worried about the future of America. I am concerned for the future of my family. When I combined these two thoughts I started to look at real estate outside of the US market. I was pleasantly surprised by what I found. There are a number of jurisprudence where the legal structure supports foreign ownership. I suggest that you look into buying property overseas as part of your retirement plan.
