WESTLAKE VILLAGE, Calif., May 30, 2017 /PRNewswire/ -- On May 3rd, the US Senate voted 50-49 to block state-run retirement programs created during the Obama era. State retirement plans were touted as a way to provide retirement security to 55 million private sector workers who don't have access to 401(k) plans through their employers. Proving to be little more than over-promising and under-delivering political theatre spearheaded by California, state-run retirement plans were dealt a fatal blow when President Trump signed H.J.Res.66. on May 17th.
State funded retirement programs were intended to be a savings and investment vehicle minimally funded through payroll deductions. An authority on retirement policy in the United States and author of Social Insecurity: 401(k)s and the Retirement Crisis, James W. Russell states: "The problem with the individual savings and investment approach is that even if administration fees are minimized, the vast majority of participants will not accumulate enough money to come anywhere close to adequately financing their retirement years."
Unfunded state retirement pension obligations have risen an astounding 600% in the past decade from $292 billion in 2007 to $1.9 trillion today. Irrespective of return on client assets, hedge fund and private equity firms siphon three percent of pension plan assets through their annual administrative fees. Aggressive austerity measures such as benefit cuts and pension freezes are a drop in the bucket for states trying desperately to close the pension gap. Interestingly enough, the very same states are pitching the private sector on helping small businesses manage their employees' retirement accounts.
President Trump, who showed great foresight by killing the state-run retirement initiative, has cast a major vote of confidence in the ability of working Americans to do what's best for themselves when it comes to their retirement. Americans looking for complete control over their retirement assets are turning to physical gold and silver, which are both non-correlated and tax-deferrable when placed in a Customized Private Storage IRA.
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In a retirement system plagued by market volatility, stagnant returns and exorbitant fees, Redwood Gold Group offers a clear and simple alternative to conventional precious metals companies. They empower clients with customized retirement solutions to shelter assets and create lasting wealth. Call (844) 239-0485 for more information about Customized Private Storage IRAs.
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SOURCE Redwood Gold Group