Now, this isn’t that infamous one percent that were touted in the media recently. The 1% we are talking about here: the return CalPERS generated for those 1.6 million clients over the last year (June 30, 2011 – June 30, 2012). This number misses the recently reduced rate of return CalPERS designated as it’s ‘break-even’ of 7.5% annualized. With a return of 7.5%, CalPERS would be able to provide benefits to current beneficiaries without needing over-fund or seek greater returns with greater risks.

But with a 1% annualized return, CalPERS falls well below their stated ‘break-even’. And with that lower rate CalPERS will be looking to make up for its miss in the years ahead as Henry Jones, Chair of CalPERS Investment Committee said, “It’s important to remember that CalPERS is a long-term investor and one year of performance should not be interpreted as a signal about our ability to achieve our investment goals over the long-term”.

How will they achieve those investment goals over the long-term? More risk for bigger returns? More funding in the future to pay for the obligations promised in the past?

If you’re with CalPERS you may just have to wait and see, but you could take the proactive approach and see what can be done about your situation today. Contact us today and we’ll show you the path to a Personal Pension Plan, placing your investment goals ahead of the Fund Managers’ and Investment Committee’s bonuses.

Inside Job, Narrated by Matt Damon (Full Length HD) from jwrock on Vimeo.

If you haven’t seen this movie, set aside time now to do so. If you know someone who should see this movie, share it now. This is a film every American needs to watch. Delving into the fraud and corruption that led to the crisis, Charles Ferguson produces a must watch film.

This report, “The Widening Gap Update”, takes us through both state pension obligations and health care obligations, ultimately leading to where the states stand on their ability to pay. And although the report makes clear state pensions have enough cash to cover things over the short-term, longer-term payouts are questionable.

From “The Widening Gap Update”

The article states:

“Retirement ages will have to move to 70, 80 years old,” Benmosche, who turned 68 last week, said during a weekend interview at his seaside villa in Dubrovnik, Croatia. “That would make pensions, medical services more affordable. They will keep people working longer and will take that burden off of the youth.”

Well that’s nothing new. We all take into account we may need to work longer to make up from the losses incurred during the Crisis.

But the truth of Mr. Benmosche’s message is the false belief that retirement is a choice. The simple fact is retirement comes at different times for different people due to age related illness and other personal situations. Not to mention that at a time when the younger generation is having problems finding long-term employment, those who are 60+ have even more problems finding work. A convenient point he misses from that villa in Dubrovnik.

Most of today’s companies have done away with the Defined Benefit model for Pensioning their employees. Instead, companies and the government have gone with a method that places the burdon of managing these critical funds on the people depending on them. This transition leaves individual employees with choice in how they would like to manage their retirement funds.

But the Defined Benefit Model, what your parents and grandparents relied on for retirement, had a major benefit over the new Defined Contribution Model: Expertise.

Without the watchful eye of pension fund managers, an investment committee, and a large investment pool to make use of ‘Economies of Scale’, the new Defined Contribution Model leaves those needs to the retiree. While some might be able to get by, juggling the different responsibilities associated with each, the financial skills required to do so successfully aren’t available to everyone.

The answer for most in this situation is to find a Financial Advisor.

But who can you trust to manage the money you need to live-off of during retirement?

You see, the vastness of the financial services industry was created from the idea You, the retail costumer, wanted to gamble in stocks and bonds and take your chance at ‘Winning Big’ in the next Microsoft or Apple. Yet even in retirement, the money you depend on is allocated or put to work chasing the “Next Big Thing”. What does this mean for your account?

It’s going to be invested by your financial professionals into stocks or bonds without a plan for the losses that WILL OCCURE in the Market. Because what do we know will happen in the Market?

It will go UP and it will go DOWN.

So who do you talk to?

Us!

We work with planners that understand losses are what will make or break your retirement. A planner that understands the importance of Income in a retiree’s life after work. When your financial professional can guarantee you an Income, the worries of the Market fade-way.

That is the difference with a UrPension.com Plan and the “Other Guy”.

You can immediately set up an appointment with one of our top insurance licensed agents, advisors who specialize in retirement income planning! He or she will take you through a process that is completely tailored to YOU and personalized to fit YOUR unique wants and needs in retirement. 

We view every client with the uniqueness they possess, which is why we consider it extremely important that they are guided on a path that matches THEIR personal pension needs.

Everyone wants to retire in comfort. To that end, we contribute diligently to our IRAs and 401(k) plans in order to build our safety net, and hope that the Social Security program is still viable when we hit retirement age. But will you need your own Personal Pension plan?

Unfortunately, today’s employment-run retirement plans aren’t as robust or reliable as they used to be. If you’re depending solely on your current work plan to sustain you once you retire, there’s a very good chance you’ll end up looking for a new job during your golden years.

Retirement packages: Then vs. now

For most people, planning for retirement used to be fairly simple. In general, jobs were taken with the intention of staying at the same company for your entire working life. It wasn’t uncommon to remain with an employer for 20, 30, or even 40 years.

Because of this company loyalty, employers provided pension plans. Long-term employees received a percentage of their salaries upon retirement—without having to “pay in” to a plan while they were working. The longer they stayed with a company, the greater the percentage of retirement pay.

However, when the practice of frequently changing jobs became commonplace, employers started moving away from traditional pension plans. By the 1980s, nearly every company had adopted 401(k) or IRA plans, which require employees to pay in rather than having the company cover it all.

Social Security: Not a likely bet

While the government continues to make noises about saving Social Security, the odds are stacked against the continued success of this program. Baby boomers are now retiring in droves, and funding for Social Security has been reduced before, and will be reduced again.

The bottom line is that you just can’t count on Social Security to be there when you retire. It’s essential to have an alternate plan in place.

So, what should you do?

If you want to live comfortably after your retirement, your best option is to create a personal pension—either as a supplement to your 401(k) or IRA, or as your primary retirement fund.

Personal pensions are versatile retirement savings plans that can help ensure worry-free living during your golden years. Whether you’re working and contributing to an employee fund, employed but lacking a retirement program, or self-employed, you can start a personal pension plan now that will serve as a reliable safety net.

Some of the options for personal pension plans may include:

• Mutual funds or stocks
• Bonds or CDs
• Fixed annuities

You can create a diverse investment portfolio that includes both high-risk (mutual funds, stocks) and low-risk (bonds, CDs, fixed annuities) accounts, or you can rely on a majority of CDs and fixed annuities that offer slightly less in possible returns, but with far lower risk factors.

No matter what type of personal pension you choose, starting your fund now could mean the difference between a happy retirement, or working as a retail store greeter during your golden years. It’s never too early—or too late—to start saving.