Today’s Wall Street Journal contained a MUST READ article for anyone who is interested in taking control of their financial future.
The article contains an interview with Robert D. Arnott who is the founder and chairman of Research Affiliates LLC in Newport Beach, Calif. He is well known in the fund world as the portfolio manager hired by Pacific Investment Management Co. to run Pimco All Asset and Pimco All Asset All Authority.
According to Mr. Arnott U.S. investors have a big problem:
“This very year, for the first time in U.S. history, the population of senior citizens rises faster than the working-age population. Less than 10 years ago, when the baby boomers’ kids were coming into the labor force and the very skimpy roster of Depression babies was retiring, we had 10 new additions to the working-age cadre for each one new senior citizen. It goes to 10-to-1 in the opposite direction in 10 years. There will be 10 new senior citizens for each new working-age citizen. If that’s not a political, economic and capital-markets game changer, I don’t know what is.”
In other words, our population is getting older and the ratio of retirees to active workers is going to balloon. Think for a minute about how this will affect your investment returns going forward.
As retirees begin to liquidate their portfolios to support themselves there simply will not be enough younger buyers on the other end. The overwhelming supply of sellers will keep a lid on stock and bond market prices. According to Mr. Arnott, “Rates of returns are likely to be anemic and are likely to become more so for those who save later.”
In order to take control of your financial future first and foremost you need to have an understanding of the larger macro economic picture and how it will affect your portfolio. Secondly, you need to take action and invest in opportunities that will provide the returns you need in order to live the retirement of your dreams, send your kids to the finest schools, take luxurious vacations or whatever else will make you feel truly happy.
The good news is that Ropay Asset Investors offers investors an opportunity that has nothing to do with the stock or bond markets. It’s an opportunity that average investors would not otherwise have access to without our company. But most importantly, its an opportunity that will provide excellent investment returns for years to come.
Do Good and Make Money!