Category Archives: Blog

Overload of U.S. debt set to go-off

debtbubble

There are many economists and global financial strategists talking about the ever-expanding U.S. debt which is quickly approaching $20 trillion dollars. One of those experts is Peter Schiff, president and CEO of Euro Pacific Capital. He is an investment broker, investor, author, financial commentator, and radio personality. For the past several months Schiff has maintained his opinion that right now Wall Street is suffering from “irrational exuberance.”  This was a phrase first coined by then Federal Reserve Chairman Alan Greenspan back in the late 1990s. It was Greenspan’s way of describing the huge upswing in tech stocks rally prior to the dot-com bubble blowing up.

Today, appearing on the CNBC Show- “Squawk Alley”  Schiff made his opinion very clear about the current record stock run on Wall Street and what’s going to happens to the U.S. debt bubble.  Schiff said:

““The market has got this thing all wrong…The debt bomb is going to explode”

Schiff added that  he believes the Federal Reserve will try to work the U.S. out of this debt crisis by adding more stimulus money, but this will only make the problem worse. He said that record low interest rates have allowed the United States to  pay for its current debt, but now its so large that there’s no possibility of repaying it. In addition Schiff said that “as interest rates rise and inflation grows, creditors are going to demand a higher premium.”

Schiff also disagreed with President Donald Trump’s plan for more spending on infrastructure projects saying that: “You don’t help the economy by spending money. To the extent that we need to repair our infrastructure, that’s a cost that we have to bear.”The fact that it creates jobs, that’s not a good thing because we’re diverting resources that we might otherwise have been able to use more productively to make necessary repairs to our infrastructure.”

See all of Peter Schiff’s interview with CNBC below.

Is the debt bubble and an imminent debt crash causing you to worry about your retirement nest-egg? If you’re concerned about debt, becoming a victim of financial fraud in retirement, or what a stock market crash would do your retirement portfolio, then you need to get educated on the exclusive Crash Proof Retirement System from its creator-Phil Cannella and the company’s CEO- Joann Small. This proprietary system is designed to ensure safety for your accounts so when the market goes up, your accounts can experience gains, but when the market goes down or crashes, your accounts stay even; You never lose a penny of your principal and that’s guaranteed! Get educated on the proprietary Crash Proof Retirement System at the next Crash Proof event!

Register here.

There is no cost…No obligation…Just a Crash Proof Education from the creator of the exclusive Crash Proof System-Phil Cannella, and the CEO of Crash Proof Retirement- Joann Small.

See what you’ll learn at a Crash Proof Retirement Educational Event. Watch below.

U.S. debt closing in on $20 trillion dollars

debt-record-default-obama

It seems that everybody is getting excited and celebrating the fact that the Dow Jones Industrial Avg. has hit the 20,000 mark, but more importantly (and much more serious than the Dow surpassing the 20K plateau) is the fact that the U.S. national debt is very close to hitting the $20 trillion dollar mark.

In fact, economist Michael Pento, of Pento Portfolio Strategies told CNBC this week that the $20 trillion dollar debt mark for the U.S. is a very serious issue.

“Pento is an economist and a so-called: “debt-watcher” and has been predicting a bond market crash that would come with a collapse in demand, and the weight of eventually rising rates, that will push-up the cost to finance American debt.”  -CNBC

Debt nearly doubled under former President Barack Obama, (from $10.6 trillion to $19.9 trillion by the time he left office) and although he’s only been in office for a very short time President Donald Trump has seen the debt rise another $2 billion dollars.

Crash Proof Retirement has interviewed one of the world’s leading economic forecasters, and best selling author: Harry Dent.  Harry Dent predicted the late 90’s economic boom and the crash of 2008, and during an exclusive interview on the Crash Proof Retirement radio show, was asked by Phil Cannella (Founder of Crash Proof Retirement) and Joann Small (President & CEO of Crash Proof Retirement) about the debt crisis and why bailouts won’t work. Watch below.

If you are in or near retirement, wouldn’t you like to lock in the gains you’ve made on the stock market and never have to worry about another crash or downturn?  There is a safe and guaranteed alternative to the risk, corruption and fees within the securities industry, and it’s called the exclusive Crash Proof Retirement System. If you’re worried about losing any part of your retirement nest-egg then let Phil Cannella and Joann Small educate you on the exclusive Crash Proof Retirement System. This proprietary system is designed so that when the market goes up, your accounts can experience gains, but when the market goes down or crashes, your accounts stay even; You never lose a penny of your principal and that’s guaranteed! Get educated on the proprietary Crash Proof Retirement System at the next Crash Proof event!

Register here.

There is no cost…No obligation…Just a Crash Proof Education from the creator of the exclusive Crash Proof System-Phil Cannella, and the CEO of Crash Proof Retirement- Joann Small.

See what you’ll learn at a Crash Proof Retirement Educational Event. Watch below.

What President Trump’s tax plan means to Americans

TrumpTaxPlan

One of the several policy changes that President Trump promised during his campaign was restructuring the federal income tax system. He also promised significant tax cuts and to cap the number of deductions allowed at $200,000 total. President Trump’s proposal calls for reducing income tax rates, from its current seven brackets to just three.

The current 7 tax brackets are:

  • 10% – Single: $0- $9,275-                  Married joint:  %0- $18,550
  • 15% – Single: $9,275-$37,650-         Married joint:  $13,250 – $50,400
  • 25% – Single: $37,650- $91,150       Married joint:  $50,400- $130,150
  • 28% – Single: $$91,150- $190,150   Married joint:  $130,150- $210,800
  • 33% – Single: $190,150- $413,350   Married joint:  $210,800- $413,350
  • 35% – Single: $413,350-$415,050    Married joint: $413,350- $441,000
  • 39.6% – Single: -$415,050 +              Married joint filers- $441,000 +

President Trump is proposing 3 brackets:

  • 12% percent
  • 25% percent
  • 33% percent.

See more specifics of Pres. Trump’s tax proposal here.

CNBC spoke with Timothy Speiss, who is the chairman of personal wealth advisors at accounting firm Eisner-Amper.  Speiss says for many middle-income taxpayers, the new standard deduction [under Trump’s proposal] may exceed their itemized deductions, thus allowing a higher deduction.  See more below.

According toe CNBC-

The Urban-Brookings Tax Policy Center has estimated what people would save annually on their federal taxes by income under President-elect Donald Trump’s tax plan and the tax plan proposed by House Republicans.

According to their figures if you earn $24,000 to $83,000 per year, your savings would be minimal. If you earn between $83k/year and $143K/year, the Trump plan would save about $2,000 while the House proposal would save about a quarter of that (approx. $500)  If you earn over $143,000 per year, President Trump’s proposal would save over $15,000, while the GOP proposal would save just over $10,000

Trump’s plan also calls for the repeal of the alternative minimum tax and the estate tax. The proposal also caps itemized deductions at $100,000 for single filers and $200,000 for married couples filing jointly.

The CNBC report also stated:

Not all taxpayers would benefit from Trump’s proposals. His plan calls for repealing personal exemptions for taxpayers and their dependents as well as the head of household filing status. If that happens, single parents with dependent children and most married households with at least three dependents would pay more in federal income taxes. About 20 percent of households and more than half of single parents would pay more in taxes under Trump’s tax plan even with the child-care breaks, 

If you are concerned about how a changing tax structure could effect your retirement savings, then it’s time you got educated on the exclusive Crash Proof Retirement System from its creator-Phil Cannella and the company’s CEO- Joann Small. This proprietary system is designed to ensure safety for your accounts so when the market goes up, your accounts can experience gains, but when the market goes down or crashes, your accounts stay even; You never lose a penny of your principal and that’s guaranteed! Get educated on the proprietary Crash Proof Retirement System at the next Crash Proof event!

Register here.

There is no cost…No obligation…Just a Crash Proof Education from the creator of the exclusive Crash Proof System-Phil Cannella, and the CEO of Crash Proof Retirement- Joann Small.

See what you’ll learn at a Crash Proof Retirement Educational Event. Watch below.

How will markets fare during the first 100 days of the Trump Presidency?

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It is a question that Republicans and Democrats, young and old, investors and novices, and basically all Americans with retirement savings plans are pondering: What will the stock markets do during the first 100 days of President Donald J. Trump’s administration?

It is a question that CNBC.com recently addressed with a panel of experts including U.S. Senator David Perdue (R) Georgia. Among the issues and points raised in the article:

  • The new President’s 1st 100 days in office is usually the so-called “honeymoon period” that the President has with Congress and the public, and can set the tone for what’s to come.
  • The markets have already risen substantially after Trump won the Presidency on 11/8/16.
  • The Dow quickly rose as much as 7.5% before cooling off over the past few weeks.
  • According to Fact-Set (which provides financial information and analytic software for investment professionals) since Election Day, ETF or exchange-traded fund investors have invested nearly $14 billion into the SPDR  S&P 500 Trust  (an investment fund tracks & follows the S& P 500 index.
  • Investors have also placed and another $6.5 billion into the Financial Select Sector SPDR Fund (Which invests in a wide array of diversified financial service firms, ranging from investment management firms to commercial and investment banking.
  • History has shown us that the stock market will be fairly good to President Donald Trump, at least in the beginning.
  • Since 1953, the S&P 500 has risen an average of 1.6 percent in the first 100 days of a presidency, posting gains 70 percent of the time.
  • President Trump takes office during the 2nd longest bull market run in history, (which is approaching 8 years this coming March)
  • Since March of 2009 The S&P 500 has risen over 1,300 points.
  • After flirting with the 20,000 plateau, the Dow Jones Industrial average has cooled off.
  • Some experts are saying that this could be a case where the market rallies briefly, hits those targets, (like the 20,000 mark for the Dow) and then falls, and that volatility may be about to return to the markets.
  • Stocks rose more (ahead of Trump’s first day) with the Dow gaining 100 points at the start Friday.
  • That stood in stark contrast to Barack Obama‘s swearing-in back in 2009 when the market, (sunken by the financial crisis) , lost about 5.3 percent.

See more from CNBC below.

If you’re worried about the future of your retirement savings then you need to get educated on the exclusive Crash Proof Retirement System from its creator-Phil Cannella and the company’s CEO- Joann Small This proprietary system is designed to ensure that your liquidity needs for the future will be met, Safety and security of your savings is out top priority. If and when the market goes up, your accounts can experience gains, but when the market goes down or crashes, your accounts stay even; You never lose a penny of your principal and that’s guaranteed! Get educated on the proprietary Crash Proof Retirement System at the next Crash Proof event!

Register here.

There is no cost…No obligation…Just a Crash Proof Education from the creator of the exclusive Crash Proof System-Phil Cannella, and the CEO of Crash Proof Retirement- Joann Small.

See what you’ll learn at a Crash Proof Retirement Educational Event. Watch below.

Saudi Arabia faces financial crisis over low oil $

Saudi Arabia2

CNN-Money grabbed our attention with this headline recently:

The International Monetary Fund (IMF) has sharply cut its economic growth forecast for Saudi Arabia.

For years Saudi Arabia has been the world’s biggest exporter of oil, but now a severe budget crisis is forcing the oil rich nation to re-figure its finances.  With no recovery in sight for the oil industry the IMF (which is an international organization of 189 countries working to secure greater global financial stability, promote high employment and sustainable economic growth, and reduce poverty around the world) expects the Saudi economy to grow only by 0.4% this year, down from a forecast of 2% just three months ago. This is due to a cut in oil production, thanks to the falling price of crude. Saudi Arabia and other major oil producers agreed to the cuts in December to ease the “over-load” of supply that had caused prices to collapse.

According to CNN.Money –

“The drop in oil prices has forced Saudi Arabia to rethink its economic strategy. The country’s budget deficit grew to $98 billion in 2015, and $85 billion in 2016, forcing the country to borrow money from international investors for the first time. The IMF expects Saudi Arabia to borrow more money in 2017. “

Saudi Arabia already cut energy subsides from its government, cut wages for officials and warned of 4 more years of austerity measures, which refers to official actions taken by the government, during a period of bad economic conditions, to reduce its budget deficit using a combination of spending cuts or tax hikes.

See more from CNN/money here.

Back in 2015 the prestigious think-tank; The Brooking’s Institution predicted Saudi Arabia was quote: “A ticking economic time bomb.”

So why should Saudi Arabia’s financial problems worry you if you’re in or near retired years?  If Saudi Arabia’s economy starts to fail, then it destabilizes the Mideast region, and that economic tremor will have a domino effect on all of the other global economies connected to it; including the United States. The stock market is very volatile, and investors are likely to run scared if they see the energy sector starting to suffer because of Saudi Arabia’ increasing debt and financial troubles. if that happens, then you can expect a major correction of possibly a crash.

If you’re worried about losing any part of your retirement nest-egg then let Phil Cannella and Joann Small educate you on the proprietary Crash Proof Retirement System. This proprietary system is designed so that when the market goes up, your accounts can experience gains, but when the market goes down or crashes, your accounts stay even; You never lose a penny of your principal and that’s guaranteed! Get educated on the proprietary Crash Proof Retirement System at the next Crash Proof event!

Register here.

There is no cost…No obligation…Just a Crash Proof Education from the creator of the exclusive Crash Proof System-Phil Cannella, and the CEO of Crash Proof Retirement- Joann Small.

See what you’ll learn at a Crash Proof Retirement Educational Event. Watch below.

Cracks in the economy are starting to grow

economy-cracks

Crash Proof Retirement has been saying for months that the financial bubble that’s been growing on Wall Street for the past 7 years is about ready to burst. (This, as a result of our own research, and from the educated opinions of experts like world famous economic forecaster & best-selling author Harry Dent)

Well, there are now even more signs that those “cracks” are beginning to grow.

Following President–elect Donald Trump’s news conference on Wednesday, stocks on Thursday showed losses that haven’t been seen in months.  The Dow fell by as much 170 points at one point on Thursday. Apparently what was said this week wasn’t exactly what investors wanted to hear.

  • Trump criticized the pharmaceutical industry, which sent health care and bio-technology stocks down.
  • He also did not provide new details on three of his key policies: tax reform, deregulation of certain sectors and fiscal stimulus.

There was also bad news in the auto industry.

  • Fiat-Chrysler shares fell 13% after the EPA (Environmental Protection Agency) accused the lawmaker of using deceptive software, which allowed excess diesel emissions in over 100,000 vehicles.
  • The report comes after Volkswagen admitted to criminal offences in rigging U.S. emissions tests,  and agreed to pay $4.3 billion in civil and criminal fines in a settlement with the U.S. Justice Department.
  • On Tuesday, Ford Motor Company confirmed that it would be less profitable in 2017 than last year.
  • Takata Corporation –(The world’s largest maker of maker of automobile airbags) will plead guilty in the worst auto-safety scandal in American history that has led to hundreds of thousands of automobile recalls,
  • Takata will pay $1 billion dollars to resolve the investigation by the U.S. Justice Department.

Investors also focused on speeches from several Federal Reserve officials.

  • Philadelphia Fed President Patrick Harker, (who is a voting member of the central bank’s policy making committee), said that 3 rate hikes are appropriate in 2017.
  • Chicago Fed President Charles Evans was more cautious, however say the economy could grow strongly for a bit, but it’s likely to be unsustainable. Evans is also a voting member of the Federal Open Market Committee.

In addition, home improvement giant Lowe’s says it will be laying off “less than 1 percent” of its employees in the near future. The exact number of layoffs is not known. Lowe’s employs more than 285,000 workers.

It’s enough discouraging news to make anyone in or near retired years, worry sick over their retirement nest-eggs.  The question you have to ask yourself is:

If the stock market drops 30% or more this year, do you have time to recover your losses?

It’s a question you must seriously consider if you’re facing retirement.

If you’re in or near retirement, wouldn’t you like to lock in the gains you’ve made on the stock market and never have to worry about another crash or downturn?  There is a safe and guaranteed alternative to the risk, corruption and fees within the securities industry, and it’s called the exclusive Crash Proof Retirement System. If you’re worried about losing any part of your retirement nest-egg then let Phil Cannella and Joann Small educate you on the exclusive Crash Proof Retirement System. This proprietary system is designed so that when the market goes up, your accounts can experience gains, but when the market goes down or crashes, your accounts stay even; You never lose a penny of your principal and that’s guaranteed! Get educated on the proprietary Crash Proof Retirement System at the next Crash Proof event!

Register here.

There is no cost…No obligation…Just a Crash Proof Education from the creator of the exclusive Crash Proof System-Phil Cannella, and the CEO of Crash Proof Retirement- Joann Small.

See what you’ll learn at a Crash Proof Retirement Educational Event. Watch below.

What are the “best & worst” natural cold and flu treatments?

supplements

We are bombarded by them every day and each night: Advertisements on television, radio, and online promoting so-called “natural supplements” to fight or prevent any number of ailments. This time of year, most people (especially those in or near retired years) are concerned about preventing a cold or flu.  But how do you know which natural remedies are truly effective, and which ones are just hype & no substance?  Prevention Magazine has listed the “Best And Worst Natural Cold And Flu Remedies” in an effort to determine which immune-boosting supplements really help—and which are just hype.

The following is a list of the most commonly advertised natural supplements and how the editors of Prevention Magazine feel about them.

Omega 3s

According to Prevention Magazine:  “If you don’t like or eat a lot of fish, pop an omega-3 supplement daily to reap the fatty acid’s impressive immune-fortifying properties. Omega 3s increase the activity of phagocytes—cells that fight flu by eating up bacteria—according to a study by Britain’s Institute of Human Nutrition and School of Medicine. Other research shows that omega-3s increase airflow and protect lungs from colds and respiratory infections. Look for purified fish oil capsules that contain at least 1 g combined of EPA and DHA.”

Echinacea

Prevention says: “If taken at the start of a cold, this herb might shorten duration and severity of symptoms. But some brands don’t contain the amount of echinacea listed on the label—and some formulas have none at all. Possible side effects include wheezing, rash, and diarrhea.”

Vitamin D

According to Prevention Magazine:  “This power nutrient may effectively boost immunity and help prevent colds, a Harvard study shows. People with the lowest vitamin D levels were 36% more likely to have upper respiratory infections, compared with those with the most D. (Asthma patients with low levels of D were nearly 6 times as likely to get sick as those with the greatest amounts.) Adequate amounts of D help produce cathelicidin, a protein with virus-killing qualities. Since it’s tough to get enough from sunlight or diet (fish and fortified dairy are the best sources), you’ll need a supplement to attain optimal levels, says study author Carlos A. Camargo Jr., MD. Aim for at least 1,000 IU daily.”

Ginseng-powered supplements

Prevention says: “Consider taking this supplement, which contains North American ginseng extract, when you feel a cold coming on. Subjects who took two daily capsules of Cold-fX caught half as many colds as a group taking a placebo, according to a study by the Center for Immunotherapy of Cancer and Infectious Diseases at the University of Connecticut. When they did get sick, their symptoms lasted less than half as long. This particular ginseng variety contains compounds that increase white blood cells and interleukins, proteins the immune system relies on.”

Zinc
The research on this mineral is conflicting, according to Prevention Magazine.   Still, “30 mg taken at the very start of a cold will shorten it by about half a day,” says David L. Katz, MD, MPH, director of the Yale University Prevention Research Center. Look for Zicam or Cold-Eeze. By slowing the multiplication of the virus in the nose and throat, these products appear to shorten colds. But don’t overdo it. While even a slight deficiency in zinc, which is needed to produce white blood cells, can increase your risk of infection, more than 50 mg daily can suppress your immune system and block absorption of other essential minerals.
Vitamin C

Prevention Magazine says: “There’s certainly no downside to eating a lot of C-rich foods, such as red peppers and citrus fruits. But taking a vitamin for extra protection won’t help. A 2007 review of 30 studies found no evidence that vitamin C supplementation prevents colds in the normal population. Plus, megadoses can cause kidney stones, upset stomach, and even internal bleeding in children.”

Just like when choosing a doctor or nutritionist, you want a retirement expert who puts “your needs ahead of there own.”  It’s called having a fiduciary responsibility, & that’s exactly what exists with Crash Proof Retirement.

Planning for a successful and worry-free retirement isn’t always easy, but you can get educated on the exclusive Crash Proof Retirement System from its creator-Phil Cannella and the company’s CEO- Joann Small. This proprietary system is designed to ensure safety for your accounts so when the market goes up, your accounts can experience gains, but when the market goes down or crashes, your accounts stay even; You never lose a penny of your principal and that’s guaranteed! Get educated on the proprietary Crash Proof Retirement System at the next Crash Proof event!

Register here.

There is no cost…No obligation…Just a Crash Proof Education from the creator of the exclusive Crash Proof System-Phil Cannella, and the CEO of Crash Proof Retirement- Joann Small.

See what you’ll learn at a Crash Proof Retirement Educational Event. Watch below.

What you should do to successfully plan for retirement

Crash Proof Retirement

Crash Proof Retirement

It goes without saying that envisioning an ideal retirement is still a big part of the American dream. When you define what an “ideal retirement” is, many people would say that it involves good health and the companionship of a spouse or loved one; the elimination of financial debt obligations like a mortgage, car payments or college tuition; And most importantly:  the peace of mind in knowing that you have effectively planned not to run out of money in retirement.

With those ideas in mind, CNN/Money and the Motley Fool recently compiled a list of the 5 financial steps you should take before you retire.

1. Make a Social Security plan
It’s important to know how much you’re going to get each month from Social Security, and with a “My Social Security” account or a paper copy of your statement, you can get a great estimate of that number. Your specific benefit will be based on your (or your spouse’s) earnings history and the age at which you start collecting. Key things to consider when it comes to Social Security are that you can start collecting at any age between 62 and 70, and the longer you wait in that window, the higher your monthly benefit will be. In addition, know that you’ll likely face a penalty if you’re still working and start collecting benefits before your full retirement age.

2. Get on top of the coming changes to your health insurance
If you’re 65 or older, you’ll likely qualify for Medicare. If you’re retiring under age 65, your employer may offer you a chance to stay on its plan as a retiree in good standing. If it doesn’t, you might still be able to stay on the company plan for 18 months through COBRA benefits. Beyond those options, you qualify for guaranteed-issue health insurance through the Obamacare program, and may receive a subsidy for it, depending on your income level.

3. Adjust your budget to fit your new circumstances
While your healthcare costs are likely to rise in retirement, many of your other expenses will fall, notably those associated with working. In addition, if your kids are grown and independent, and your mortgage is paid off, your regular outlays will be significantly lower than they once were. Particularly since your income will likely drop in retirement too, and a portion of your cash will come from spending down your assets, it’s incredibly important to keep your spending rate sustainable.

4. Put together a savings structure for your near-term needs
While stocks are a great way to build wealth, once you start relying on your portfolio to cover your costs of living, the volatility of stocks makes them unreliable as a source of spending money. Indeed, money you need to spend within the next five or so years does not belong in stocks, though even as a retiree, you’ll likely have longer-term financial goals where stocks can still play a role. Make sure you have plenty of cash to meet your current needs over the next few months to a year.

5. Think about the legacy you want to leave behind
If you’re following the 4% rule of retirement withdrawals, chances are good (though there are no guarantees) that you’ll leave some assets behind once your retirement draws to a close. These can be used to help your children, their children and/or charitable endeavors of your choice. If you plan well, you may even be able to make choices that mean you’ll be around to see them benefit from your generosity. Consider things like lifetime gifts to your children. You and your spouse can each give up to $14,000 to each of your children and their spouses each year with no gift tax consequences. That allows for a maximum transfer of $56,000 from one married couple to another, each year. Additionally, there are no limits on money you send to eligible education institutions for tuition or health care providers for qualified medical care for others. If you exceed the annual limits, you can take a credit against your lifetime exemption ($5.49 million for singles, $10.98 million for married couples) and still not pay a gift tax. If you choose to support a charity, a charitable remainder trust is a tool that can help you get funds to it while you’re still alive. With that setup, you will still receive an income stream from that donated money to help cover your costs. In many respects, it’s a win-win: You get to see the benefits of your goodwill, but you still get the income from your assets. And of course, you can always leave a portion of your estate to a charity of your choice in your will.

Planning for a successful and worry-free retirement isn’t always easy, but you can get educated on the exclusive Crash Proof Retirement System from its creator-Phil Cannella and the company’s CEO- Joann Small. This proprietary system is designed to ensure safety for your accounts so when the market goes up, your accounts can experience gains, but when the market goes down or crashes, your accounts stay even; You never lose a penny of your principal and that’s guaranteed! Get educated on the proprietary Crash Proof Retirement System at the next Crash Proof event!

Register here.

There is no cost…No obligation…Just a Crash Proof Education from the creator of the exclusive Crash Proof System-Phil Cannella, and the CEO of Crash Proof Retirement- Joann Small.

See what you’ll learn at a Crash Proof Retirement Educational Event. Watch below.

Liquidity could be at risk if stocks crash in 2017

liquidity-risks

One of the most important issues to investors, especially those in or near retired years is: liquidity.

People want to be able to access their money, whenever they feel the need without the risk of fees or restrictions that limit the amount of money that can be retrieved.  For seniors this can be especially critical in the event of a health emergency or financial crisis where a substantial amount of money is needed in a relatively short period of time.

With that in mind, a story on CNBC caught our eye with the headline:

El-ERIAN WARNING: “BIG NEGATIVE SHOCK” CAN SPUR LIQUIDITY CRISIS

What does this mean?

Mohamed El-Erian is chief economic adviser at Allianz, the corporate parent of PIMCO where he served as CEO and co-chief investment officer. He serves as chair of the President’s Global Development Council, and is a contributing editor to the Financial Times.
He told CNBC that:

“A big negative shock could cause major volatility in areas newly exposed to risk. The risk has migrated from banks to non-banks, and that is going to be an issue. I think the biggest risk, if you ask me what happens if we get a big negative shock, is liquidity. ETFs promise liquidity at reasonable prices. It’s not clear that some of the ETFs in the high-yield space, for example, can actually provide that.”

Liquidity refers to the volume and pace at which assets or equities can be bought or sold in the market without a change in price. Exchange-traded funds, or ETFs, offer liquidity, but El-Erian says that they could be at risk if a major shock hits the stock market.

Watch below.

If you’re worried about not being able to access your money or that your retirement accounts lack the liquidity that you’ll require in the future, then you need to get educated on the exclusive Crash Proof Retirement System from its creator-Phil Cannella and the company’s CEO- Joann Small This proprietary system is designed to ensure that your liquidity needs for the future will be met, Safety and security of your savings is out top priority. If and when the market goes up, your accounts can experience gains, but when the market goes down or crashes, your accounts stay even; You never lose a penny of your principal and that’s guaranteed! Get educated on the proprietary Crash Proof Retirement System at the next Crash Proof event!

Register here.

There is no cost…No obligation…Just a Crash Proof Education from the creator of the exclusive Crash Proof System-Phil Cannella, and the CEO of Crash Proof Retirement- Joann Small.

See what you’ll learn at a Crash Proof Retirement Educational Event. Watch below.

The next economic catastrophe: The student debt crisis?

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Ask any parent who is struggling to put their child through college, what their #1 fear is and that answer is simply one word: Debt.  About 1 in 4 student loan borrowers are in default. The average parent borrows $21,000 in student loans for their children’s education, according to a recent study by researchers at the University of Southern California and the University of South Carolina. The national statistics are staggering: Americans owe nearly $1.3 trillion in student loan debt, spread out among about 44 million borrowers. In fact, the average Class of 2016 graduate has $37,172 in student loan debt, up 6% from last year. Nearly 70% of bachelor’s degree recipients leave school with debt, according to the White House, and that could have major consequences for the economy. Another recent survey by Citizens Bank shows that 59% of millennial graduates have no idea when their student loans will be paid off.

Jennifer Ailshire, an assistant professor of gerontology at the University of Southern California, co-authored a study on the current state of student debt. She says the latest statistics are mind-numbing, and this debt crisis is not just about students, it’s about parents as well.

“This is a relatively recent phenomenon. Parents didn’t take on a lot of student loan debt until about the 1990s. It’s very closely linked to rising tuition and increases in the number of kids going to college. It paints a dismal picture and we’re only at the beginning of this trend.”

Parents with a household income of $120,000 or more borrow an average of $30,000 for their children and are more likely to take out student loans. The study was funded by the National Institute on Aging.

Not long ago, US News & World Report published “10 Student Loan Facts College Grads Need to Know”


1. Learn about your student loans.
Make sure you know if your loans are federal or private and know what the interest rates are.
2. Know who your loan provider is. Check with the National Student Loan Data Base System.
3. Check if your loan has a “grace period”. Many private and federal loans do. A grace period will give you time to figure out a repayment plan.
4. Make a “grace period payment” to help. A payment will help reduce the payment of the balance of the loan.
5. Take action on your loans during your unemployment. You may be able to enroll in an income driven plan to reduce your payment amount.
6. Defer a loan by continuing your education.
7. Place a loan in forbearance to postpone payments. This will postpone payments but interest will still accumulate.
8. Avoid defaulting on a student loan. Every lender has a plan for every student.
9. Enroll in a payment plan.
10. Develop a student debt repayment strategy.

See more here, and watch CNBC Senior Personal Finance correspondent Sharon Epperson talk more about student loan debt implications for students and parents, below.

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