What Elites Do With Their Money: Part II

“Do what I say, not what I do.”

This might as well be the mantra for those that run our financial system and oversee the American Empire.

While our banks, the Federal Reserve, and the federal government keep the overwhelming majority of their assets in guaranteed savings, Main Street America gets thrown into the Wall Street casino. Barry Dyke’s latest book, “The Pirates of Manhattan II: Highway to Serfdom” shares some eye-opening statistics in on pages 166-168…

1. The Federal Government Thrift Savings Plan (TSP), which is essentially a 401(k) plan, has nearly half of its assets in the “guaranteed fund” option. It’s important to point out that federal employees receive extremely generous defined-benefit pensions as well as cradle-to-crave healthcare. And yet, they still don’t gamble much with equity-based mutual funds.

2. The Federal Reserve 401(k) plan has 75% of its money in the Interest Income Fund. A fund that has more than 87% of its assets in fixed/guaranteed annuity contracts from major life insurers. Federal Reserve workers have a rich defined-benefit pension plan as well.

3. FINRA, non-profit financial self-regulator, lost $624 million in 2008 in its employee retirement plan through a mix of hedge funds, private equity, and other highly speculative unregulated investments. Now, FINRA keeps 66% of its assets in highly rated bonds and cash.

Reading these over, I get the feeling that our own government believes that stock market is a big money-making mirage. If it didn’t believe that, wouldn’t it make more sense for it to use it to pay for employee benefits and pensions?

Clearly, it’s a matter of trust. Their own dollars are on the line, as well as the livelihoods of their employees. The U.S. government, as an employer, clearly does not trust the stock market with its money.

Part me is happy that at least somebody in Washington has their head screwed on straight, but the other part of me is upset they don’t share this secret with the rest of the country.

Instead, we’re told stock market. We’re told mutual funds.

Essentially, we’re told to put our trust into something they themselves don’t trust.

For too long, their noses have kept growing without many people noticing or caring to notice. There’s a lot of financial apathy out there.

It’s funny and sad that most people spend too much time on trivial matters such as choosing an entrée on a menu or choosing between two wardrobes at Talbots.

But for really important things such as retirement planning, they choose to blissfully and ignorantly stand on the sidelines while their money is left to the mercy of the stock market.

This is why books such as “The Pirates of Manhattan II: Highway to Serfdom” are a good reminder that the status quo is failing nearly everyone without a government job.

It’s your job to hold prospects accountable to the financial goals and make them care about where they retirement money goes.

They deserve much better than the status quo.

Be valuable.

John

Managing Editor, Leads4Insurance.com

This article is copyright © by Leads4Insurance.com All Rights Reserved
Back to Marketing Tips »

If you would like more information on how to get qualified leads for insurance agents, life insurance sales leads, and referrals for your business, CLICK HERE to get a copy of our FREE Report "How Any Insurance Agent Or Financial Advisor Can Add An Extra $5,000 - $25,000 Per Month To Their Existing Business With No Cold-Call Prospecting."

You are welcome to copy this page and post it on your web site or use it in your newsletters. The only requirements are:

1. you must copy the entire article and make no changes whatsoever.
2. you must include the signature file below at the bottom of my article.

Brian J. Kay, Executive Director, Leads4Insurance
921 Port Washington Blvd., Suite # 3 Port Washington, NY 11050
tel:(516)944-6700 fax:(516)944-5275