Friday, February 19, 2010

A Trillion Dollar Reason to be Self-Sufficient

The Pew Center for the States recently issued a report that the states are cumulatively short on their promised pension benefits to current and retired workers by $1 TRILLION. This report uses data from mid-2008 so it doesn't include the fact that pension assets got hammered during late 2008 and into early 2009. This means that the financial situation is more dire than the report indicates.

If you think you are safe because you are not dependent on a state pension. Think again. Many corporate pension plans are suffering a shortfall. In addition, Social Security's shortfall is much, much greater. Millions of current and future retirees are at risk to the tune of TRILLIONS. The growing anger toward politicians is very real and very justified.


No matter what the speech-makers out of Washington, Wall St. and the state capitals tell you, the situation is extraordinarily serious and a humongous shortfall looms for millions in our society. There will be massive problems with virtually everyone's retirement future unless they take steps to avoid the inevitable financial pain.

I will be completing some educational programs soon to help people prepare themselves financially during the coming months and years. If you want to be alerted, feel free to follow me at

Let me clue you in to what you should be thinking about in general terms. At the very least, you should be developing a two-pronged approach in your financial strategies; Passive and Active.

Passive means that you should have your assets work in your favor and not against it. In prior essays (and in future) I cover the idea that the foundation of your financial assets (stocks, ETFs, etc.) should be in investments tied to "Human need". I cover this in greater detail in my financial seminar described at

Active means that you are using your time, effort, abilities and initiative in creating wealth such as reducing your debt or increasing your income. I think that EVERYONE should consider having a business (part-time or otherwise) as part of your over-all wealth-building strategies. Some of you already know that I have taught home business start-up seminars for over two decades. Don't forget that you are your own greatest asset.

You can find out details at I do plan on providing some how-to education on topics such as starting a business and protecting your retirement assets in the near future. Keep checking back here for details and updates.

I wish all of you continued success and prosperity...we'll get through this but not without knowledge and preparation. Feel free to email me with your questions at If I can provide a resource to help you, I would be glad to.

Paul Mladjenovic