Taking the Investment Road Less Travelled

Over the last few months it has been a revelation to me to see how many politicians openly lie and defy reality to defend their party ideology.

It’s more important to be faithful to the party than to face economic reality.

So I am in a serious review of where to go from here. There is no way I can influence many people despite stating the “bleeding obvious”.

What does it take for people to come together to stop many in the wealth industry from taking everyone’s wealth? It’s as if people are walking around in a daze looking for someone to help them.

Stop doing it and help yourself. Relying on the same old solutions that failed you in 2000 and again in 2007 is just plain stupid.

Governments have realised this too and are about to take over your retirement funds one way or another to force you into yet another retirement solution doomed to failure.

We all know that banks were too big to fail and got bailed out.

Well it seems you are too small to fail and will be bailed out too. They are terrified of all the Baby Boomers having to rely on the government for handouts. Politically that can change governments. But where the bankers were able to keep their money, you will have to give up yours.

Twenty five years ago the Government decided you needed to save for your own retirement and an industry was born to meet that need. But in fact it was an industry whose sole aim was to enrich itself at your expense by risking your money and charging you a handsome fee for the privilege.

The secret is to send you a report showing all the paper profits that you cannot touch for 40 years while at the same time they are paying themselves real money each quarter and it’s all taken from your nest egg. I don’t see anything much changing here.

Now that Mr Bernanke says he thinks the recession is over and the stock market has recovered 50% you may think everything is back to normal.

You’d be right. It is back to normal. You are paying your hard earned money into your retirement funds and your fund managers are using it to rebuild their own wealth by taking even more risk that they did before the crash.

The governments now know fund management is just a huge ponzi scheme although they can’t say as much for fear of panicking you. They are concerned for themselves and their political survival so they want you to all invest in the next big thing – Annuities. They want you all to take out annuities so they won’t have to step in and bail out your pensions after they are destroyed yet again.

This time it will be the insurance companies that will have the running. As you know insurance companies in the main have a good reputation for fiscal responsibility over the long term despite what you may personally think of them.

Now the rush will be on for the wealth managers to acquire insurance companies and then add annuities to their diversified portfolio. It’s this very much all about controlling your money over the long term.

Working hand-in-hand with wealth managers, Governments  will now begin offering or legislating for you to put some or all of your money into an annuity. You won’t have much say in the matter as always because it will be for your own good.

As with all investments though when everyone is in it, it ceases to be a good investment and will become a major risk over time. Wasn’t AIG an insurance company that just took on too many small, tiny, miniscule risks? But when confidence was lost in the AAA investments they insured it sent them to the government for a $183Bn bailout.

There is something to be said for taking the road less travelled. It applied to your retirement nest egg too.

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