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Gov Murphy plan for new jersey pension

From Birch Gold Group

Pension plans across the U.S. have been doomed to fail since 2008. But surprisingly, that’s not the most alarming news regarding pensions…

New Jersey (NJ) has the 2nd worst credit rating and the most underfunded public pension fund in the U.S.

In a move that resembles “robbing Peter to pay Paul,” NJ is now preparing to raise taxes. But they’re taking the simple idea of raising taxes to a whole new level…

New Jersey Governor Phil Murphy proposed taxing online-room booking, ride-sharing, marijuana, e-cigarettes and Internet transactions along with raising taxes on millionaires and retail sales to fund a record $37.4 billion budget that would boost spending on schools, pensions and mass transit.

So, in addition to breaking his campaign promise of giving NJ residents more value for their tax dollar, Governor Murphy has decided to go off the deep end…

…and fund the public pension plan by taxing everything.

Under the guise of “investment,” Governor Murphy is aiming for an unrealistic 5.7% increase in state revenue from this long list of tax increases. This includes a 19.8% tax hike on income over $1 million.

As a result, he expects to resume full pension funding by 2023.

But aside from the numerous problems with Gov. Murphy’s plan, like the fact that millionaires can afford to move out of the state… there is a much bigger and more disturbing trend developing.

The Public Pension “Money Grab” of 2018

New Jersey might provide the blueprint for other states to follow. But the “money grab” isn’t what you think, and it’s not good

We are told that we can fix the pension funds by saving more – such as by increasing the contributions from beneficiaries and/or taxpayers … this is the equivalent of trying to fill a milk bucket by milking more cows when the problem is that there is a hole in the bucket. Why put more milk in the bucket until the hole is fixed or the farmer gets a new bucket?

More savings, more taxes, and more incompetence. Together they add up to more money out of your pocket, and into a public pension system that is melting down fast.

State by state, pensions are being underfunded at an alarming rate. Other states will likely follow New Jersey’s example, meaning you could end up paying the price for this “Pension Money Grab” whether you like it or not.

This transfer of your wealth to the state could leave your own retirement hanging by a thread. Plus, if you’re already relying on a state pension, you can expect your cash flow to suffer dramatically.

But it gets worse…

It’s Not Just State Pension Plans that are “Suffering”

Big companies like GE are hanging retirees “out to dry” too.

One particularly good example of this is General Electric. By some estimates, its pension fund is underfunded to the tune of $31 billion.

And the same “leaky bucket” that’s affecting State pensions is also affecting the corporate world. But increasing company stock prices won’t help

Pensions’ stock holdings have appreciated considerably this year, but their value has not caught up with their liabilities, or what they owe their retired workers.

The entire pension system could detonate. But even if it doesn’t fail entirely, it’s looking more and more like a Ponzi scheme than a retirement vehicle.

But pension holders won’t be the only ones suffering.

If retirees don’t spend in an economy that depends on spending and consumption … the ripple effect will be one more thing that makes “Crash 2018” a reality.

The Disturbing Trend that Could Suck the Life Out of Your Retirement

The economy is failing, pensions are melting, and your wealth is being confiscated in an attempt to recoup losses

The under-funding device is a very subtle and brilliant mechanism of wealth transfer. No one thinks about it that way but that’s what it is. A massive wealth transfer mechanism.

What happened in Cyprus could happen here too. It might just be pensions for now, but it could be bank accounts and other sources of cash later.

Bottom line… companies and states aren’t going to just sit idle and wither out. They are going to use extreme measures to recover their losses and progress into the future.

As more state pensions fail, and more company pensions go bust, you need to do your own “wealth transfer” and find ways to protect your hard earned savings.

Don’t let your wealth be confiscated by a desperate plan. Instead, consider protecting it with a safe haven asset that is known for its security such as physical precious metals like gold.

 

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  • sally

    This state is so corrupt I am glad I am leaving this year. Most of the people in this state are not to bright, the school system is corrupt and most of the teachers(depending on where you are in the state) serve no purpose. The judges and police in most of the state are corrupt and forget the politicians’ if we have 2% that are honest that’s a lot. They have stolen the working peoples money for their corruption, incompetence, and illegals. What transpires here is so un American I am happy I can finally get out.

  • Too damn late. The only way forward is to borrow a lot more than needed every year, put that off shore, and ignore, ignore ignore, until collapse. By this time, you may have plenty to make a retirement OK.

  • The gov. of NJ just needs to contact me. I’ll make him at least 30% every year, whatever the invested amount. Get your head out of the past, and look ahead. Mr. Mayor? Are you listening?

  • John Decker

    N.J. is a special case. If they could to get back the money the Mob has stolen, they could fund the pensions and have enough left for political graft to make the Governor a rich man. The only problem would be the Mob killing everybody in the entire state.

  • Davidme2

    There are something like 50%- 55% of people employed in government throughout the United States !! Speaking of Big Government, Right !! These employees can retire here in New Jersey with full benefits at the age of 50or55 !! The rest of the real working class must wait to retire at age 65 and that age appears to be rising to 70 !! When the real working class retires, most have to rely on social security !! Those government employees also receive social security !!! Speaking of out of balance !!! This state of New Jersey has been handing out these government retirement benefits for decades, without giving any thought as to the property taxes the people have to pay !! New Jersey is not alone in keeping with their employee benefits, it seems to be more or less universal !! The politicians take care of the government employees as Union Bosses Would off the backs of “We The People” !! I do not care if you are Republican or Democrat, You Must Be An American First and Foremost, Respect Our
    Constitution and Do Right By The Voting Public !!! New Jersey is and has been corrupt for a very long time, with very few exceptions !!! Wake Up America!! United We Stand !!!

  • DoktorThomas

    NJ is a vivid example of why The Citizens have to get US governments out of their pockets. But that is another imminent quagmire. Governments engage in gross fiscal negligence every day of the year. It what they spend money on and the pecking order. For example, if you fiscal conservatism, then the ones wasting/spending public money should be paid last from what was saved from frugal handling of tax money. Since they essential get paid first, there is no reason to be conservative. Government should be part time, 90 days maximum (summer) with no over time. Every indulgence has to eliminated. The process should be what is the tiniest we can get away with and still run the state. All welfare, subsidies, and maybe even pensions eliminated. Certainly unionizing of government workers should be eliminated as cruel and unusual punishment. Government should be so small as to be nearly impossible to locate. Those driving the criminal justice system (the felons) need to pay for that system entirely themselves (they are the users) or opt for execution. There is not any part of government that isn’t mismanaged or corrupted by politicians. Those who agreed to the pensions at issue, should personally pay for their error. Or, their heirs or assigns, including the unions and their officials. when there are two parties to a contract and third parties are hurt by the failure one, the other party is required to step and go good on the promises within. Henceforth, pensions should be voided as illegal Ponzi schemes. ©2018

    PS. Those wisely fleeing the Garden State should avoid Illinois, New York, Louisiana, and California: the are near the end also. Federal tax payer cannot bail out these poorly run States; let them wallow in their own misfortune.