Your Rare Coin Retirement

State pensions are nothing short of a glorified Ponzi (Pyramid) scheme. The “insurance” we all pay is just another tax that ends up in the same pot as all the other taxes. Obligations paid to those lucky enough to be retired are paid from current tax revenues.

A recent study conducted by Deutsch Bank estimated that in the year 2050 there will be 75 pensioners for every 100 workers in Europe. This makes the possibility of a comfortable retirement based upon contributions made during our working lives increasingly remote.

Private pensions are not much better off.

While liabilities to current retirees grow, the assets behind the schemes have shrunk. In 1997 the top 100 companies in the British stock market (FTSE 100) had pension schemes funded by 132% of obligations.

Following a tax raid, rule changes, stock market underperformance and an ageing population this has fallen to about 70% funded today.

According to the Pension Protection Fund, an organisation that insures UK pensions against collapses, during August 2007 pension funds saw their aggregate pension’s surplus melt from a £51 Billion surplus, to just under £27 Billion. At the same time 73% of defined benefit, pensions are under funded.

In the USA General Motors has 1 active employee for every 2.5 retirees in the company scheme.

The annual fixed cost of paying their pension obligations to 420, 000 ex- employees is destroying the company. Just providing heath care insurance costs G.M $10 Billion per year.

Once ranked as the world’s largest company G.M is no longer in the business of making a profit for shareholders. They are in the business of making a profit to pay their pension liabilities.

The combined pension liabilities of Germany’s DAX 30 companies are an amazing 31% of their combined market capitalisation.

The Pensions Sicherungs- Verein, is an association that insures corporate pensions against insolvency set up by the German government in May 2006. The fund is already being sued by members for the way it has handled a 2 Billion Euro payout to 170,000 workers whose pensions have collapsed.

In the Netherlands, one of Europe’s best state pension schemes, the liabilities of the AEX 25 equals 26% of market capitalisation.

So what can you do?

For a start, make yourself responsible for your own future. If your government or private pension does pay out, consider it a bonus. When this has been discounted, you will have a clearer picture of the problems you face and what needs to be accomplished.

And here is the premise of our report: 12 silver, gold and rare coins costing between £50 and £2,000 with a median price for all twelve of about £300 per coin.

we all know the saying that the only thing guaranteed in life is death in taxes, but if you had set aside 10% of your gross income in 1972 ($1,300), it would have bought you almost 1 Kilogram of pure, 24 karat gold.

Adjusted for inflation, you would need $10,315 to have the same purchasing power of $1300 in 1972.

In other words, if you had kept your $1300 in cash you could buy the equivalent for $126 of goods and services today. At today’s spot price of $650 per troy ounce (31.1 grams) your 1 Kilo of gold would be worth $21,000.

In the stock market S & P 500 Index (gross of tax, and dividends reinvested) it would be $18,000.

In a bank account before tax it would be $3700.

In the PCGS 3000 rare coin index it would be $72,000.

For more information on the possibilities of a Rare Coin Retirement please email your advisor, or if you do not have a contact simply click here. Send Mail

Don’t delay, everyday, week or year you wait you loose.

~ by sigrarcoinvault on May 2, 2008.