Peter Grant has an excellent summary article about the exploding pension crisis up at Bayou Renaissance Man. He posted it on the occasion of California passing law to force private sector workers to buy into the worthless state pension system. There’s just too many good links to sift through it all individually, so check it out when you have some reading time.
Here are the high points for you, but definitely take time to read it all when you get a chance. Basically:
- If you have a government pension, it’s about to vanish in unfunded liabilities.
- If you have a corporate pension, it probably isn’t doing much better.
- If you are not counting on a pension, you’ll still get affected directly or indirectly:
- Directly – CA is the 6th state to force private workers to buy into the state pension system and keep it afloat for a few more years.
- Indirectly – Government pensions are paid for by tax dollars. Illinois is the worst, standing at over $77k needed per taxpaying household to keep their promises to pensioners. Want to be there when the taxman comes to collect?
What should you do? Here’s our recommendation:
- A secure retirement includes having the means to produce your own basic necessities, with low risk of your capital assets being seized or heavily taxed.
- Move to a state with sane fiscal policy and spending habits, to minimize your risk of being forced to bail-in failing state pensions.
- Make sure your new neighborhood contains many like-minded individuals who want to be self-sufficient and not government dependent. They will become valuable trade partners and fellow defenders in the event of economic catastrophe.
- Build or acquire a homestead capable of self-sufficient living. This drastically reduces your cost of living and you won’t have to worry about affording food, water, and energy in your retirement years if your land produces all of that for you.
- Get out of debt. If you’re buying land, try to do it debt-free. If you can’t move right away without help from the banks (that’s the case for most Americans these days), make sure you have a plan to pay off that bank loan as fast as possible. High inflation may look like the dollars you owe to the bank decades from now are worth less and so it is a good move for you, but don’t fall for it. If the economy is actually inflating at 10% per year (see Shadowstat chart at left) and your paycheck is not, then you will need those dollars to buy increasingly expensive basic necessities like FOOD, but will be paying it to a bank instead so as not lose your home.
If this sounds like a good plan, why not reach out to those guys at Survival Retreat Consulting? They know the Redoubt territory (which has the sanest government policies), and specialize in helping you find a piece of land or homestead that will give you self-sufficient security in the years to come. There are only so many turn-key off-grid homesteads on the market per year and they are usually costly, so it helps to have an expert who can tell you if the land you can afford has the potential to become what you will need and how you can get it there.