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Missed Fortune – Protecting Your Future From Generation “Gimme”

Posted on | May 6, 2012

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The Creation of Generation Gimme

Recently Fox Business News interviewed a professor of economics at Valencia College. This professor generally asks his incoming students to write a short essay about what the American dream means to them and to outline what they expect government to do for them.

Out of 380 students, only about 10% stated that they’d like to have fewer taxes and less government interference in their ability to go out as entrepreneurs and create opportunity. They wished only to reap the fruits of their labors and to enjoy the rewards that resulted from their hard work and willingness to take risks.

Nearly 90% of the students expressed a desire to have government take care of them by providing education, health care, jobs, and money for purchasing their homes as well as funding their retirements. They had no qualms about having government tax the rich people and then spread that money out amongst the rest of society.

The professor was flabbergasted, but he also recognized a teaching moment when he saw it. The next day, he asked all of the students to place their purses and wallets on a table in the classroom where he promptly removed all of their cash. The professor then informed his students that he too had a dream of building a cabin and owning a yacht but would need other people’s money to realize his dream.

The class was predictably outraged until the professor pointed out their apparent willingness to subject others to the same type of legal plunder.

So where does this attitude of Generation Gimme originate? The professor theorized that it is the result of how these young people were taught to think from kindergarten through twelfth grade. What’s even more disturbing is how many adults tend to think this same way and how that has contributed to the financial mess we find ourselves in as a nation. We’re clearly seeing the costs associated with people trying to live off of the efforts of others and how it affects our own tax burden.

Personal Responsibility Trumps Dependence

The national debt in the last 5 years has risen from $9.2 trillion to $15.7 trillion. This year marks the first time the national debt has exceeded the Gross Domestic Product (GDP). This milestone is the clearest indicator yet that, as a nation, we are in real trouble.

We’re in the middle of a crucial window in which a person can move their serious retirement money into a tax-free vehicle before tax rates are hiked even higher. Tax-deferred vehicles are proving to be a terrible retirement strategy primarily because people continue to find themselves in even higher tax brackets at retirement than they were in while they were working.

The real scope of the problem ahead of us becomes even clearer when considering the nearly $121 trillion in unfunded liabilities that government has promised to pay out in Social Security and Medicare benefits. The bottom line is that people who count on the government to provide for them at retirement are going to be deeply disappointed when the coffers turn out to be empty.

The solution is to take ownership of your future and to create your own economic stimulus plan.

Coincidently, “How To Create Your Own Economic Stimulus Plan” is the name of a very timely e-book that can teach you six simple tactics that make all the difference. You’ll also learn how to harness the power of three miracles:

  1. Compound Interest
  2. Tax-Free Compounding
  3. Safe, Positive Leverage

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*Life insurance policies are not investments and, accordingly, should not be purchased as an investment

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