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Guest Post - Rethinking the Concept of Retirement
Rethinking the Concept of Retirement
By Mrs. Cog
Cognitive Dissonance: Lately Mrs. Cog and I have been thinking about the expected fallout of the unfolding global financial/social/political crisis. Slowly but surely we are visiting, and re-visiting, the concept of 'retirement', something we were both sold on as 'real' all our 'working' lives. Considering many of us are depending upon various retirement income streams, especially those income streams not based upon actual cash in hand but rather on promises made by private corporations and public entities, it might be in our best interest to revisit our basic assumptions and premises. Simply put, we're not in Kansas anymore.
Mrs. Cog shares her thoughts on this subject below.
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It’s a funny thing how certain concepts have permeated throughout our culture and are just simply accepted as ‘normal’ without question. Even when faced with the reality that a given ‘normal’ situation is in jeopardy or worse, may all together cease to exist, we as a society still measure and plan our lives based upon what we thought was supposed to happen. If we feel we are entitled to it, then not only do we cling to it, but we do so with anger and righteous indignation.
One of the most brilliant public relations campaigns launched in modern times is the concept of retirement. The idea of working hard all our lives while carefully saving and investing so that we may spend our twilight years financially independent while relaxing, playing and enjoying all the things life has to offer as a reward is romantic and hard to resist. The people who believe this is still the norm will be the same ones who claim “I did everything right. I played by all the rules. It's not fair. I was robbed.”
To add insult to injury, those of us who will not benefit from this version of the bought and sold concept of retirement were a party to watching the generations before us experience precisely that. In the world’s greatest recorded wealth cycle and bubble of all ages, where the world eventually levered over a quadrillion dollars in bets, the wealth effect has been tremendous and many in the Western world were able to jump on for the ride. Overdue for the boom to go bust, the latter generations will not enjoy the picturesque golden years in style and comfort as sold to us in the retirement brochures.

Even as the more aware and savvy among us understand the wheels are coming off the economic bus presently on a worldwide centrally planned disaster tour, the continuity bias is astounding as I watch those with assets address this as an “extra rough patch” to get through rather than the clear paradigm shift it has been telegraphed to be. Furthermore, even those who see what is now underway and acknowledge this as a game changer think they can game the system, escape the worst of it or hedge enough to have one of their winning bets fall somewhere solid.
No, it isn’t fair. But blaming the generations who prospered before us or the central planners and bankers who we enabled will not bring back that comfy old age experience we had hoped and planned for. As painful of a time as this will be, perhaps this is a good time to think about "if not retirement, then what”.
For a brief time it may appear that working a low wage job in a position perceived far beneath our qualifications is the only future the system has left for us. And it may very well be so if we still allow the same system that sold us on ‘retirement’ to define what we will do, or be, without it.
Perhaps it's time to give deep consideration to rethinking any concept that depends upon the way the system is supposed to work. Public and private pensions, social security and annuity payments will not be getting the job done. We fully expect IRA and Roth retirement investment vehicles will be largely forced to convert some or all holdings into U.S. Treasuries……for your own safety of course. Capital controls and changing the financial and social rules will become the new normal. Cash and any residual savings can simply be ‘bailed in’ to ‘bail out’ the big boys through the banks and brokerages that hold the funds.
Finally even if these retirement vehicles could be liquidated and placed in currency stacks before us, after we pay outrageous penalties and taxes of course, there is no sure way to preserve it. Certainly there are no ‘good’ (read relatively ‘safe’) investments to grow it. The overt and stealth creation of money at the Federal Reserve will continue to erode the purchasing power of all who depend upon the money to be there when it matters the most.
If we put all emotion aside for the moment we can see that the government, while seeing itself as separate from the people, will gladly point out that it is of and for the people. So whatever the ‘collective’ needs to sacrifice in order to keep it going is the right thing to do. There is logic to this viewpoint if one believes the alternative is chaos and anarchy and lives in fear of those scenarios. Many involved in public policy setting do not think people are capable of governing themselves, let alone protecting themselves. This now seems to include planning for their elder years, both how one might live as well as die.

So what is the alternative? How might we view our elderly future? What can be done?
With our eyes wide open, questioning everything is a good start. Rethinking our needs and wants, reevaluating our priorities, and assessing what we might really value versus what society has told us is important. These are no small tasks and indeed can be a most humbling process to consider, but the upside of doing so could make all the difference.
While Cog and I continue to question and rethink our plans, these are the ways we have gone about replacing the concept of retirement with a different type of perceived security.
1. Getting our money out of money has perhaps been the most difficult step to take. The world still operates with money and the US dollar still spends. Sure, things cost a bit more, but nothing has spun out of control on a day to day basis to change the function of money just yet. But because the US dollar ‘trigger event’ and its timing will remain unknown to us plebs until it unfolds, we are erring on the side of caution and assume there won't be time to re-jigger our finances then.
What does this mean? We begin by only keeping enough cash in the bank to cover bills and immediate shopping and spending needs. Savings accounts and money markets don't earn interest, so they were eliminated.
2. Minimizing our counter-party risk was similar to a Wild West shoot out. Everywhere we looked targets had to be taken out. The rules for musical chairs (Calvinball style) say that whoever doesn't possess a seat when the music stops loses. And furthermore the rules can be changed at any time. So as we looked at just where our assets were distributed it turned out that most, if not all, of them were dependent upon a third party (oftentimes several layers of third parties) to do (or be) something in order to return the value of our investment to us.
Most obvious to us were brokerage accounts and safety deposit boxes that we closed out. Eliminating counter-party risk involves taking possession of any assets and items that will store earnings and wealth. Taking possession of precious metals, aka stacking gold and silver, is the most common way discussed. More contrarian ‘experts’ are now coming forth to say farm land, useful tools and investing in the knowledge of an valuable trade or skill are some of the best assets one can possess, none of which depends upon another party.
3. Arranging not to be at the mercy of rising interest rates is a key element to forwarding our plan for independence. This means getting rid of any debt which may be subject to rate increases. Ben Bernanke may have stated that interest rates will not rise in his lifetime, but he has been mistaken and/or disingenuous in the past. I cannot adequately express the personal relief it has brought us to not be subject to credit card interest or the worry about resets on mortgages with an ARM in five years.
When the day finally arrives when interest rates begin to raise substantially, certain costs will go up in tandem. Government entities on the Federal, State and local levels will get socked with rising interest payments payable on new or reissued bonds, and all taxes will rise accordingly. The same is true of corporations that depend upon debt issuance such as utilities. Supplying ourselves with alternatives at today's prices may be a bargain in hindsight.
4. Creating streams of income not reliant on a collapsing job market or an employer with constraints is providing us continuity in a rapidly changing landscape. Charles Hugh-Smith has recently written about the emergence of a new type of entrepreneur he has labeled Mobile Creatives. http://www.zerohedge.com/news/2014-05-01/meet-new-labor-class-mobile-creatives That article is a fascinating analysis of an emerging class of workers; this idea seeks to eliminate income dependency upon the state and corporations.
5. More self sufficient living arrangements was an essential step in preparing for our second half of life from several aspects. We collapsed previously diversified ‘retirement’ funds into a home with some land that has no debt as well as resources and tools that supply us with the ability to feed ourselves. By doing so, we now enjoy a much healthier lifestyle while converting our ‘money’ into tangible assets that will retain value for us.
6. We have taken charge of our health (care) because the current system is so dysfunctional and the previous methods for doing so (a good health insurance plan and reliable medical care) are now largely obsolete. Cog and I have made the decision to take complete responsibility for our own wellness. What this translates into is no dependency upon prescription or regular over the counter medicines. Nature provides far more potent remedies including powerful antibiotics and anti-cancer substances. We have elected to maintain our high deductible ‘health insurance’ policies in case the need for emergency medical treatment arises. Most important we do not mentally or emotionally rely on the members of the medical profession to keep us well or ‘heal’ sickness. I personally feel this has been the most empowering of all the steps we have taken to become more self-reliant.
Without question there are things we cannot provide for ourselves. No man is an island. As we get older, we recognize that we may need help with things and act accordingly by trying to assist others in the spirit of the Golden Rule.
There is little doubt that the years ahead bring promises of drastic and unknown changes. By addressing our future years and making changes while we are able, we are both less dependent upon our community and have an increased ability to contribute. It is never too late to reevaluate the way we take responsibility for ourselves.
Mrs. Cog
07-10-2014

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http://earthship.com/
Pretty much the same idea as above, but can DIY really easy if you keep you plans simple.
That's what my grandparents are doing right now. I bet if you asked them, they wouldn't change a thing! A couple years back my Gpa had a serious accident and there was a push from the family to have them move off the farm (which they had literally built by hand, foundation with shovels, the whole nine yards). They wouldn't hear of it. Hovering around 80 years old each of them, they are still getting along just fine to this day. I stop by to help them with projects but usually feel like I'm getting in the way!!
Most people consider "working" at that age to be a horrendous prospect, but I beg to differ. This couple, IMO, is a shinning example of what retirement can be like with a little more elbow grease then money. Always in good spirits, and with some harrowing tale of the daily tribulations of country life, I believe it is the active, peaceful, outdoor lifestyle that keeps them as invigorated as they are. If you saw how much salt my gpa puts on his red meat, it would make you question the entire movement of modern medicine.
Don't get me wrong, they do have their difficulties, but doesn't everyone? I have yet to see life deal them a hand they can't handle. They don't worry much about the economy, other then all those horrible wars, and whether or not Rob Ford is such a bad guy, and I doubt they would feel too perturbed if the Dow lost 5000 points. As long as someone is playing some bluegrass somewhere and there is camper parking I'm sure they would be just fine.
I can't imagine retiring any other way. Personally I'm more concerned with actually making it to retirement, then what to do when I get there.
My kinda people!
Something to be said about working a property even if its a "hobby" farm. My folks are stubbornly doing so and are aging slower than others and we're coming together as an inter-generational unit. In fact us younger ones are so fed up with Ag21, etc, we're going rural 'cause we don't want to be told to go city.
Retire and float on cruise ships is a BS marketing dream, in reality it promotes "me", "dumb-me", "memory hole me" and an early demise in physical & mental capability.
IMHO if you have family on the land - work with them as best you can to keep them there and mark a spot for yourself in the future on that same land with them - at best, get your kids there every minute you can. We need our heads turned the right right way in every western nation.
(Retirement into a village or home is a curse, unless there are serious medical conditions involved.)
Keep the inter generational family in tact where ever possible and realistic - it really does irritate TPTB.
The Southwestern Virginia county (as well as several surrounding counties) where Mrs. Cog and I live is slowly loosing population as the older generation dies off and the younger people move away. Many are not interested in running a 24/7/365 farm and while this may be a beautiful place to live it is a hard place to make a living.
I'm not interested in a 27/7/365 farm either; however, if push comes to shove, we could do it. Minimalist/core survival is not the best option for a world of who-knows-how-many billions of people. Simply not sustainable.
At some point, we are going to be confronted with the realities of lifeboat ethics.
Get money out of money system....good luck.....no way possible
It may be impossible but you can try to stay away from holding massive amounts of cash for a long time. For example if you sell aproperty roll promptly into another. I contend the primary reason that inflation has not raised its ugly head or become a major economic issue is because we are pouring such a large percentage of wealth into intangible products or goods.
If faith drops in these intangible "promises" and money suddenly flows into tangible goods seeking a safe haven inflation will soar. Like many of those who study the economy I worry about the massive debt being accumulated by governments and the rate that central banks have expanded the money supply.
The timetable on which economic events unfold is often quite uneven and this supports the possibility of an inflation scenario. A key issue being one of timing. If the price of gas jumps to $8 a gallon overnight do you buy gas and not make your car payment or stop driving the twenty miles to work? Answer, it could be months before your car is repossessed so you buy gas.
It is important to remember that debts can go unpaid and promises be left unfilled. If this happens where does it leave us? Chaos and major disruption would result from such a scenario. As we have seen from the economic crisis of 2008 and following many other unsettling developments legal actions can continue to drag on for years. More in the article below.
http://brucewilds.blogspot.com/2014/04/inflation-seed-of-economic-chaos....
on a decent time scale, "retirement" is a relatively recent and soon obsolete phenomenon. Isn't it a coincidence that part of the survival is similar strategies for everyone - (1) get out of the fake, controlled, criminal system (2) create and develop real world assets and real world skills (3) just like the rest of nature, make sure you have redundant and resilient assets, investments, skills and systems (4) localize, barter and build real trusting systems with the people around you.
Is there room for 7 billion people to spread out and follow your recipe for survival? Most of the best land is presently being used either by those already there or by commercial farmers. Do we break up the factory farms to make way for "We the People"?
Many unanswered questions here.
How many of that 80% urban population could grow a stalk of corn?
It was a big thing in the cities a while back. They were able to grow rows of corn. Didn't even need to plant em!
pods
Good one pods! I'm not going to touch the one concerning the back-loaded buckwheat.
Lots of room on the Ocean and a 50 ft sloop will keep you away from the maddening crowds.
Water, water everywhere
But not a drop to drink!