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An Easy Home Based Business Opportunity - The Answer to the Coming Financial Retirement Crisis

Written by: Scott Hubbard

Article Overview: A Financial retirement crisis is on the horizon. Some, who have retired or are close to retirement, are ignoring this situation. Unfortunately, many of them will soon suffer the consequences.

An Easy Home Based Business Opportunity - The Answer to the Coming Financial Retirement Crisis

A Financial retirement crisis is on the horizon. Some, who have retired or are close to retirement, are ignoring this situation. Unfortunately, many of them will soon suffer the consequences.

Others focus on the big picture. They don't just sit back and let life's circumstances control them. They understand that the United States economy is not the same as it was 2-3 years ago.

Instead, they plan ahead. They realize that they must have an alternative source of income in retirement.

They are seeking a lucrative but easy home based business opportunity in order to provide the additional retirement income they need. This will help them deal with the financial retirement crisis that lies ahead.

Many members of the baby boomer generation have approached life in the traditional American way. They have worked hard, they have saved money, and they have invested that money.

Today, they are concerned about their retirement. They want financial security in their retirement. They don't want to reduce the lifestyle they are accustomed to. They are looking for a worry-free retirement.

In the past, retirees have depended upon Social Security, company pension plans, and personal savings to take care of them after they retire. Today, all three of these factors may be on shaky ground.

1. Social Security - In the past, the Social Security Administration has collected (through payroll taxes) more money than it has paid out in benefits. The Congressional Budget Office projected that this annual surplus would continue until the year 2017.

However, these projections have changed. In 2010, Social Security will pay out $30 billion more in benefits than it takes in. This shortfall is occurring 7 years earlier than projected. This annual social security deficit will continue to grow each year.

The only way to fix this system is to either increase payroll taxes, reduce benefits, or use a combination of both. This "fix" will probably not affect those who are close to retirement. However, it will have a substantial impact on younger Americans.

Only a few politicians in Washington, DC are willing to address the situation. That is very unfortunate because the longer they wait, the more financially difficult the "fix" becomes.

I admit that these are difficult decisions. They are not popular with most people. But these difficult decisions must be made, and I respect those politicians who do what's right for the country rather than what helps them get re-elected.

The bottom line is that Americans will not be able to rely on the Social Security system in future years as they have in the past.

2. Public and private pensions - Unfunded state and local pensions plans total $728 billion today. This deficit is growing each year and is expected to reach $1.2 trillion within the next 4 years. This is a major problem for the public employees who are depending on these pension plans. They may not be there when they are needed.

For Fortune 1000 companies, the unfunded liabilities for corporate pension plans amount to $225 billion. These deficits are projected to increase significantly in the next few years.

Many companies are discontinuing pension plans. Some have reduced their contribution to 401K plans.

The bottom line is that employees should not completely depend on employer contributions to pension and 401K plans.

3. Personal savings - This leaves personal savings as the most reliable form of retirement income.

But many members of the baby boomer generation have seen their personal savings reduced significantly by the stock market crash of late 2008 through early 2009. Some have not participated in the stock market rally which began in March of 2009. Reduction in home values have resulted in an adverse impact on retirement savings.

An uncertain economy and high unemployment make it difficult to increase savings in many families.

Here is another important consideration - inflation

I'm sure you know this. Huge deficit spending by the federal government and printing money out of thin air by the Federal Reserve will eventually lead to significant inflation. We can ignore this fact. We can deny it will happen. But inflation is coming.

This will affect every American. It will most adversely affect those who have retired or those close to retirement age. Many will find that their retirement savings do not cover their inflated cost of living.

All of these factors are changing the retirement perspective for many people. Those people having wisdom and financial foresight are looking for new solutions to help them in retirement.

Many of them are searching for an easy home business as the answer to the coming financial retirement crisis. They don't want to spend all of their free time in retirement working on a business. I don't blame them. That's why a lucrative but easy home based business opportunity makes sense.

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