The financial security umbrella that most wage earners would like to shelter under after retirement is now leaking very badly indeed! Money savvy experts block up news channels and advertisement spaces with offers of transforming
average citizen into a healthy, wealthy and wise investor; advocates of 'parting with your money' do house calls alongside those selling vacuum cleaners and sole 'wanted' letter fights for attention in mail box amongst hundreds of once-in-a lifetime offers of richness!News these days is very negative regarding government pension schemes! They blame it on either too many old people one day, not enough young people next! The answer we are told is "Go Private"!
Private pension funds are collapsing left right and center! Directors, Managers and Chairmen of companies tend as a rule to do one or more of three things with employee's pension funds. They decide that amount is too great to give back and so move to a remote island with no extradition treaty and eat caviar and drink champagne without moral conscience creeping in. Or they gamble future of a failing company on money within pension fund and (as always happens) company collapses anyway! Or last but not least they listen to a door-to-door salesman who suggests that proceeds are invested in some amazing opportunity that in actual fact turns out to be a big scam! So pension schemes and for that matter provident funds that are either controlled by government or by company that you work for are basically not worth a dime; unless a sieve be an attractive replacement for an umbrella!
There are other ways to go, other ways to invest money and to build up a "portfolio" of stocks and shares in a variety of companies that hopefully will provide high returns in years to come. Naturally, an extremely large sum of money is required to invest initially which defeats most people but …….. start off small and buy one share and should company not go bust, not file for bankruptcy, not use pension fund to prop up falsified accounts, not be accused of insider dealings and not overstate earnings or be caught actually having no capital, reserves or ability to continue trading then it is quite possible that within a thousand years this one share might be worth something! Too many companies have recently collapsed taking with them thousands of shareholders dreams of not having to skimp and do without during retirement!
Property has always been heralded as one of best investments available. And certainly many children saw their very own parents exclaiming over profit they have made on a recent house sale (never mind fact that they had to buy a new one at same time)! A nice thought, a dream of dreams but in reality property prices have increased so dramatically that nobody can afford anything larger than a shoebox under town bridge! Property has become an unaffordable luxury that now many people still invest in thus saddling themselves with a life-time mortgage that eats incomes dry, that prohibit investments elsewhere due to lack of excess funds and that produces many retired people with roofs over their heads but without finances to turn on lights! Oh, and of course it is impossible for property prices to keep on going up! Nobody ever talks about possibility, but face simple fact that people cannot afford to buy houses anymore! That bubble will burst and any savvy investor should take heed before falling into tangled property web!
