So, if traditional retirement plans aren’t the way to go, what is? (See my article Traditional Retirement Plans: 3 Fatal Flaws to find out why I believe these plans are not going to cut it when it comes to your financial future.)
What other options are available?
Well, when looking for other options, I would first suggest you stop investing in anything that has the word “retirement” attached to it. To me, that’s a sure fire sign it’s a program designed for the masses and designed for one purpose only – to make millions for the plan owners. Also, it tells me the government has their hands in the deal and can change the rules (tax laws) at any time they want. I don’t like that kind of set up.
So, what to do?
Here’s my suggestion; do what the Chinese are doing. Yup, it’s that simple. Take a look at what the Chinese government and businesses are doing with all their excess cash and you and I should do the same.
What are the Chinese doing?
They’re taking their intrinsically worthless US dollars and exchanging them for things that have real intrinsic value.
So, what are these “things” that have real intrinsic value?
Here’s a few examples as follows:
- Residential houses
- Apartment buildings
- New York City Skyscrapers
- Golf Courses
- Large blocks of inner city land
- Food Businesses
- Farms
So, am I saying we should all go out and start buying up skyscrapers in New York City?
Yes! If you’ve got a big enough pile of cash then go for it.
But, if your pile of cash is a bit modest or your access to credit is somewhat limited, then you may want to look for lower priced “real assets.”
Regardless, the name of the game is – convert! Convert, convert, convert!
Turn those worthless dollars into tangible assets – assets that have real value.
And, what makes this strategy such a good alternative to traditional retirement plans?
Good question. Glad you asked.
To me, traditional retirement plans are just another way of stacking up cash. And, the problem with stacking up cash is this – cash has no real value. To me, your income – your wealth – must be backed by tangible real assets. Otherwise you’re financially vulnerable.
The asset test is this, if the value of money goes to zero, can you use your assets to barter for the things you need?
If the answer is no, then you don’t have a real asset.
For instance, if the value of money goes to zero, what can you exchange in return for your pension plan?
Nothing. The pension only pays you in dollars and therefore that’s all you have to offer as payment. But, if the value of money goes to zero, no one will accept your dollars.
But, what if you have a rental property? Can’t you strike a deal with the local grocer to provide a room for one of his staff and in return you get groceries?
And, yes, your skills are a real asset. You can exchange your services as a plumber for instance and accept fresh vegetables from the local farmer as payment for fixing his backed up septic system. Or, if you’re a lawyer, you may provide legal assistance to the farmer and in return he pays you in chickens.
Why are the Chinese buying up US real estate at a rapid pace? What is their rationale?
Well, maybe they know something we don’t know. Maybe they are scared the US dollar is on its way out. Off to the bone yard like the “Texas Redback.” Maybe they’re getting ready for the day when some other currency replaces the US dollar as the world standard.
The Chinese are converting their dollars into real assets.
I think it’s a good idea.
Much better than any traditional retirement plan …