Where the money is....

When Willie Sutton bank robber was asked why he robbed banks he said "Because that is where the money is". How things have changed.

The banker's Bank the Federal Reserve is now robbing savers with near zero interest rates. Why? Because that is where the money is. It is a hidden tax. No law was passed. Still you are having the your money stolen through near zero interest rates to restore bank's balance sheets. If you had $300,000 in an IRA (or 401k) earning 5% in 2007 ($18,000 a year with nearly no risk) you are lucky if you earn half that today. That is a $9,000 or more of hidden taxes.

I hope to expose these types of actions and others by the FED and government. Boomers need to be vigilant - because their savings is where the money is. I will also delve into other areas of finances of interest to Boomers.

Wednesday, January 19, 2011

Drink the DC koolaid and shutup - there is no COLA for you

For 2 years now you have received no increase in your SS benefits.  They tell us there is no inflation.  Why is it you cannot afford gas for the car to go to the grocery store?  It is just as well - you can't afford the prices at the grocery store anymore.  They tell us because of the decline in housing prices that housing costs less.  If you are like me  - the house is paid for and you don't care if the market price is $75,000 or $150,000 - it costs you the same to live there.  In other words - there has been no decrease in your housing costs.   Or, you don't care if it costs less for a car or some electronic gadget - you can't afford it anyway.

So regardless of what the government says - you fuel costs, electric bill, food and all the things you buy and consume regularly go up every month.  There needs to be a change in what is measured to make COLA adjustments.  This is a conversation you need to have with your Representative and Senators.

And if this wasn't bad enough - they give working people a tax break using funds that should be funding SS.  Now it is a given that some of these people can use the money.  But what about the people making $50,000, $75,000 or more a year?  Many of the people getting this tax cut are well-to-do and could get along quite nicely without an extra $20-40 a week. 

Does this seem warped to you.  Well it does to me.  A conversation to have with your Representative or senators?  Finally the SS Adminstration is initiating adminstrative changes.  None of which benefit you IMO.  Read this: http://finance.yahoo.com/focus-retirement/article/111849/social-security-changes-in-2011;_ylt=AjveKxclr3PjXATAyJUQ4ra7YWsA;_ylu=X3oDMTE1ZG5nbHMzBHBvcwMzBHNlYwNmaWRlbGl0eUZQBHNsawM0c29jaWFsc2VjdXI-?mod=fidelity-readytoretire&cat=fidelity_2010_getting_ready_to_retire

If you don't speak up starting now the changes will continue and you will not be happy with them.  Expect major chances in Medicare over the next 2-3 years.  Think these changes will cost you less?  Not a snowball's chance in hell they will cost you less.

If you don't speak up no one will. Let your elected officals know - they screw you then you will FIRE them.