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Drivers who pass away shortly after retirement
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<blockquote data-quote="dudebro" data-source="post: 2378123" data-attributes="member: 11234"><p>This is true.</p><p></p><p>Lots of people talk about investment methods, but not enough people talk about RISK MANAGEMENT in investments. There are hidden risks all over the place.</p><p>1) INFLATION risk. People worry about stock market risk so they invest in a savings account at 0.7% "guaranteed" not to lose face value. They brag out how smart they are, and that they'd rather play it safe than invest their money in the "rigged casino" that is the stock market. They point to brief market crashes as proof of their wisdom. The truth is, if inflation is 3% and your interest earned is 0.7%, you're actually "guaranteed" to lose purchasing power with these "NO RISK" investments. And those "NO RISK" investments turn around and invest your money in the "casino" so they can turn a profit!</p><p>2) LEGAL / GOVERNMENT risk. Right now Roth IRAs are capital gains tax free. 401ks and traditional IRAs are often tax deferred. ALL of this is legal fiction. Congress could pass a law tomorrow that changes all of this. </p><p>3) UNFUNDED LIABILITY risk. So, Congress, or UPS, or the Teamsters promised you a salary when you retire for the rest of your (or your beneficiary's) life. But what if you get there to collect that pension, or SS check, and those same entities tell you "Sorry, there's no money for that, we spent it elsewhere".</p></blockquote><p></p>
[QUOTE="dudebro, post: 2378123, member: 11234"] This is true. Lots of people talk about investment methods, but not enough people talk about RISK MANAGEMENT in investments. There are hidden risks all over the place. 1) INFLATION risk. People worry about stock market risk so they invest in a savings account at 0.7% "guaranteed" not to lose face value. They brag out how smart they are, and that they'd rather play it safe than invest their money in the "rigged casino" that is the stock market. They point to brief market crashes as proof of their wisdom. The truth is, if inflation is 3% and your interest earned is 0.7%, you're actually "guaranteed" to lose purchasing power with these "NO RISK" investments. And those "NO RISK" investments turn around and invest your money in the "casino" so they can turn a profit! 2) LEGAL / GOVERNMENT risk. Right now Roth IRAs are capital gains tax free. 401ks and traditional IRAs are often tax deferred. ALL of this is legal fiction. Congress could pass a law tomorrow that changes all of this. 3) UNFUNDED LIABILITY risk. So, Congress, or UPS, or the Teamsters promised you a salary when you retire for the rest of your (or your beneficiary's) life. But what if you get there to collect that pension, or SS check, and those same entities tell you "Sorry, there's no money for that, we spent it elsewhere". [/QUOTE]
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