Thursday, November 21, 2013

Is Death the New Retirement Plan?

Is Death the New
Retirement Plan?

Retirement has fallen, and it won't be getting up anytime soon…

The AARP, which usually tries to make older Americans feel better about their future, says that 40% of Americans expect to "work until they drop."

Apparently the AARP doesn't even flinch anymore when using the word "drop" in place of retirement…

You can push that panic button all you like, but nobody's coming to help you…

Not your pension (it's bankrupt)…

Not your retirement account (it's underfunded)…

Not the government (Uncle Sam is already drowning in his own debt)…

The cold, hard facts say that 4 in 10 Americans aren't going to voluntarily leave the workforce, regardless of how old or infirm they become.

63 million Americans can't afford to step away from the daily grind.

Ask yourself – do you really want to spend your golden years
chained to the millstone?

The age for retirement keeps getting older. 80 has become the new 65 for most upcoming retirees, and the numbers continue to get worse.

According to a recent study by the Employee Benefit Research Institute (EBRI):

Only 23% of Americans expect to retire by age 65.

Don't waste your time begging the question for answers.

"So how much is enough?"

Here's the answer:

UBS recently asked upcoming retirees if they felt wealthy, and it wasn't until retirees had $5 million in assets (not including their house) that they felt confident enough to say that they had "made it."

Feel free to raise your hand if you have $5 million in assets.

Keeping afloat requires more financial buoyancy than it used to, because some terrifying uncertainties lurk below the water…

What are you going to do if your home suddenly drops 50% in value – just like the thousands of "zombie" neighborhoods in Michigan, Illinois and Florida?

Or when pensions fizzle on their promises and never send the checks you're owed?

Or when medical plans (including Medicare) can no longer cover your expenses, leaving you on your own with absurdly expensive medical bills?

Retirement planning isn't just about squirreling away some cash anymore. You have to actively counteract the hardships of the near future.

Bankruptcy is Always Just Beneath the Surface

Bankruptcy is up 178% among Americans 65–74 since 1991.

It used to be that personal bankruptcy was irresponsible young adults with no personal finance experience who ran up their credit cards.

Now 1 out of every 5 bankruptcies in the U.S. is a retiree going under.

Medical bills are often to blame – over 60% of retirees cite hospital bills on their Chapter 7.

But they're also carrying more debt. 56% of retirees have outstanding debts and are borrowing larger and larger amounts. The average retiree carries $8,278 on credit cards.

40% of Retirees Won't Outlive Their Debt

And the worries are multiplying…

It's estimated that there'll be 90 million seniors by the year 2050.

Do you really think there's enough help out there for everyone?

Or to put it another way – are you ready to compete for a place in line at the Social Security office? Or at the pharmacy? Or for an empty stool at the bingo table?

According to Bloomberg, those 78 million Baby Boomers will require what amounts to 85% of the current U.S. GDP to fund their retirement.

Will the U.S. economy grow fast enough to support such a massive obligation? Maybe. But I wouldn't bet your last years on it…

The old strategies for retirement are outdated. Back in 1945, there were 42 workers for every retiree. Today? There are only 2.5.

That's why a record number of these new seniors are remaining in the workforce – up 26% from just 30 years ago.

"Work until they drop" retirees aren't there by choice. They know they won't be able to maintain their lifestyle without a salary. In short: They know retiring will require seriously scaling back their lifestyle.

Today's America is a volatile, inflation-driven world. It's hard to have a retirement account that meets the essentials, let alone the luxuries.

Many individual financial advisors recommend saving at least 18 times your final salary to maintain your standard of living.

But that's not even the hard part.

The hard part is keeping your retirement funds.

According to CNBC, 1 in every 4 workers will raid his or her 401(k) at some point to pay for pre-retirement living expenses. That's $70 billion in "retirement funds" that will never be used for retirement.

Add this to the additional amount that retirees have failed to save, and you have your explanation of why retirement is delayed: Americans are $6.6 trillion short of what they need to retire.

Don't be one of them.

Whatever your retirement goals are, I'm here to show you the best way to grow your money AND the best way to keep it


My name is David Dittman, and I have the privilege of writing Utility Forecaster, one of the nation's longest-running financial newsletters.

I work closely with my fellow analysts Ari Charney and Richard Stavros. Together the three of us cover every aspect of utilities investing, helping our subscribers achieve the best growth and income that the market has to offer.

Utility stocks aren't like other stocks.

They have the fattest gains (natural gas company Cheniere [NYSE:LNG] had a 5-year return of 9,605% in 2002-2007)…

The largest dividend yields (up to 12.4%!)…

And the safest performance (one of the least-affected industries during the 2008 crisis).

I think we have exactly what you need to retire in comfort.


18 of the 30 stocks in our Growth Portfolio are up by triple digits (and 2 are in the quadruple digits).

I'm not afraid to mention my losses, either, because there isn't much to talk about: There are only 3 losers in the Growth Portfolio (-2%, -2.9%, and -14.9). A few bumps in Europe are all that's to blame, but my research predicts that solid cash flow and long-term contracts will carry them through.

And then there are the big winners: 552%, 864%, 957%, 1,021% and 1,081%!


23 of the 25 stocks in our Income Portfolio have total returns in the double digits. 7 of them are in the triple digits – not bad for supposedly "stodgy" income stocks.

There's only 1 loser (-4.2%) in the Income Portfolio.

But the real strength of the Income Portfolio is the dividends: There are 9 dividends with yields over 6%, including outstanding 9.2%, 10.6% and 12.4% dividends.

Yields like these will secure independence for your golden years and keep your nest egg well ahead of inflation.

We're Utility Forecaster.

While Wall Street chases trendy buzz stocks, we focus on the quiet giants that steadily plow ahead, year after year.

We specialize in the water and energy utilities that use long-term contracts (think 10, 20 and 30 years) to pull in fat income checks year after year.

Income That Can Outrun Inflation

Imagine you're retired with a nest egg of $750,000. And let's say you've been earning about 4% on your money. That's $30,000 of income per year you can take out without touching your principal—and it's crucial to maintaining your standard of living.

Except today's inflation rate, according to the government's Consumer Price Index (CPI), is running at about 2% to 3% a year—and it's eating away the purchasing power of your income. That $30,000 of income you count on is actually worth only $29,100 when you spend it at the end of the year, and it will only be worth about $22,000 just 10 years from now.

But what if inflation surges higher? Imagine the damage inflicted on the purchasing power of your $30,000 of income then.

Hyperinflation is frightening… and it's happened 47 times around the world since 1944.

Inflation ravages all levels of principal.

Let's say you've done really well: Your nest egg is worth $1 million. Did you know that with a $1 million nest egg, every single percentage-point rise in inflation rips $10,000 from the value of the principal? Imagine what would happen to your earnings – and lifestyle – if inflation were to leap by five… six… or even seven points. It's not a pretty picture.

We've already got that covered… because the utility stocks in our portfolios grow their dividends faster than inflation. Several stocks in our portfolios have increased their dividends every year for the past 20 or more.

Unfortunately, the world is throwing more than just inflation at you…

The Crisis at Our Doorstep

The cities will fall first.

Small, and at the mercy of residents with short memories and special interests, they'll go offline one by one across the country…

"We may be one of the first. We are the largest. But we absolutely will not be the last…" – David Bing, Mayor of Detroit

Detroit's $18 billion bankruptcy filing is the largest of any city in U.S. history. Not only is it a gigantic financial failure, but it also shows the nightmare that happens when the American Dream goes wrong.

26% of the population has fled, leaving behind 76,000 abandoned buildings.

The remaining residents – most of whom are elderly retirees – face life in a warzone.

Only 8.6% of reported crimes are ever solved, underfunded fire departments race to put out fires in derelict neighborhoods (at least several a day) and previously great buildings are defaced with graffiti.

And that's all before taking into account the catastrophic pension losses that you've been seeing in the news…

Here's the unfunded pension shortfall of four U.S. metro areas:

Detroit: $3.5 billion ($7,145 per resident)
Baltimore: $680 million ($7,247 per resident)
Los Angeles: $9.4 billion ($8,437 per resident)
Chicago: $19 billion ($13,355 per resident)

Those shocking amounts are just the amount owed, and don't reflect the billions and billions that have already been poured in and spent.

This apocalypse stretches from shore to shore.

Because it's not just Detroit. This nightmare is spreading across the country:

The West Coast:
San Bernardino, CA, is bankrupt for $46 million… Mammoth Lakes, CA, for $43 million… Stockton, CA, for $26 million…

The South:
Jefferson County, AL, for $7 billion…

The Northeast:
Central Falls, RI, for $21 million…

The Mid-Atlantic:
Pennsylvania capital Harrisburg has defaulted on its $300 million debt and has been forced to close its museums and sell artifacts – like Buffalo Bill's favorite pipe – just to make rent.

… And Retirementland:
Florida – with its large number of retirement communities – has been known for decades as a great place to retire. But not anymore.

Florida is home to more than a third of vacant foreclosures in the country, with 55,503 homes sitting empty. These neglected homes will sit for years before banks can unload them – creating "zombie" developments that can't live but won't die.

The millions of retirees in these communities won't be able to depend on their homes as a fallback.

According to Florida TaxWatch, one-third of the state's 283 cities are on the brink of bankruptcy, and it would only take a slight economic tremor to send them under.

Our national debt crisis is a dagger in the heart of the American retirement dream.

Retirement pensions are almost always the largest item in the bankruptcy filing of any city or business.

Death by Pension

It's scary how many big U.S. cities are in trouble. But it's terrifying how many states are in even worse shape.

Illinois: 56.6% unfunded – $82 billion ($6,505 per capita)
Colorado: 42.3% unfunded – $9 billion ($1,804 per capita)
Alaska: 40.8% unfunded – $7 billion ($10,235 per capita)
Hawaii: 40.6% unfunded – $8 billion ($6,114 per capita)

Morningstar paints a grim picture of state pension funds.

Only a handful of states are healthy enough to guarantee the future. Wisconsin stands alone as the most fiscal responsibility state, with 99.8% funding.

More than 30 states are in serious trouble. The worst-funded pensions are almost certain to force states into bankruptcy.

Do you really think that Illinois can survive for 20 years with $82 billion (and rising!) in unfunded pension liabilities?

The Illinois sinkhole grows by $17 million every single day. Even former Illinois State Senator Barack Obama – who's owed a benefit of $383,535 from the pension fund when he retires – had better hope for some change in this downward trajectory.

Taken altogether, states and local governments are $4.4 trillion short to meet their obligations.

The entire current U.S. federal budget is $3.8 trillion. And that's the largest budget the country has ever had. That means that states will have to come up with more money than the federal government to cover the needs of upcoming retirees.

America's retirees won't be able to survive without the $4.4 trillion they're owed.

There aren't any easy solutions.

Do you think that every citizen in Alaska is going reach into his and her own pocket for the $10,235 needed to fund the growing number of Alaskan state retirees who are beginning to draw on their pensions?

This is a cold, hard reality – especially in a place where you can only bury the dead June through September. (Alaskans are forced to put up $3 a day to store a corpse during the winter months.)

And the Government Doesn't Even Seem to Notice…

Don't expect help from Uncle Sam.

"Given the certainty that a retirement crisis is headed toward our shores, you'd think that our elected officials would be hard at work preparing a response. Of course, that's not happening…" – Forbes

But even if they wanted to help, tomorrow's impending economic problems make it almost impossible to do so.

That depressing $11.9 trillion U.S. debt you always hear about – the great deficit? According to Professor James Hamilton of UC San Diego, that number is actually closer to $70 trillion.

Here are a few of the U.S. debt obligations that aren't included in that number:

$27.6 trillion – Medicare for future retirees
$26.5 trillion – Social Security for future retirees
$7.5 trillion – Fannie Mae, Freddie Mac, FHA, housing
$7.6 trillion – FDIC insured bank deposits
… and it goes on.

Notice that missing money for retirees makes up more than half of the real deficit.

The Congressional Budget Office (CBO) is also required by law to calculate the cost of all future obligations written into current law. The current tally, once you include the spending spree of things like Obamacare and defense contracts? $222 trillion.

It's a number so ridiculous that it hardly makes sense. That's 58 times larger than the current U.S. federal budget.

Drowning retirees won't be able to get a lifeline from a government that's already underwater.

To put it bluntly: You're on your own.

Investing in your own retirement is the only way to build a lifeboat that can weather the storms ahead.

So while you're at it, you might as well make your lifeboat a nice one.

I didn't write all this to depress you. But it should be a wake-up call for anyone planning to retire (which is hopefully all of us).

That's why our Utility Forecaster portfolios have been carefully designed to help you take charge of your retirement finances and earn a better future.

Why Utilities?

Because utilities are in the business of supplying an infinite demand.

Think about it every time you turn on the lights, take a shower or run the AC: If there's a surer bet than buying into these old-school standbys, I don't know what it is.

Can you picture a day when you call up your power company and say, "No, thanks, I'm all good here"?

I've been through several market panics in my years of following this industry. Each time I've used the opportunity to stock up on quality utilities with regulated operations, guaranteed rates of return and generous dividends.

It all adds up to a sweet deal for investors… especially these days with everyone biting their nails about the possible fallout of rising interest rates and inflation.

These stocks can get you through anything because, simply put,
there is no substitute for utilities.

Utility executives are masters of long-term planning. They follow production cycles that last years, and complete expansions that take years and cost billions.

Which business do you think encourages more responsibility…

The company trying to rush a new cell phone design to fad-crazy consumers before the competition?

Or the company building a $1.3 billion port upgrade over 7 years with a guaranteed contract?

This is why utilities have long been the backbone of retirement funds.

Utility stocks make up the base of the most successful retirement mutual funds, from Vanguard to BlackRock to TIAA-CREF.

While a great start, these retirement funds and 401(k)s are better than nothing – but you can do a lot better on your own.

They also eat away your money with their maintenance fees.

Those fees might look small, but they're actually quite costly…

According to MSN Money, if you contribute for an entire career to a 401(k), that innocent-looking 0.2% fee will cost you 2.8 years in savings.

Bump the fee up to 1% (and many 401(k) funds charge a lot more than this!), and it will cost you over 11 years in savings.

Do you really want to give up a decade of contributions to maintenance fees?

Then don't!

But above all else, Utility Forecaster enables you to outperform all of the best retirement funds.

We've made a 9.3%-per-year total return since 2000, which translates into a 218% gain – over 9 times as much as the S&P 500's 24%. The NASDAQ is underwater by 20% over all those years.

We also continue to pocket yields all the way up to 12%.

We've been around for 24 years. Add up our total performance, and we've earned our subscribers 1,667%.

We became the largest-circulation income advisory in the country by earning bigger, safer gains that are ignored everywhere else.

Here's what you get as a subscriber:

–> Our Monthly Newsletter

Each 12-page issue of Utility Forecaster arrives in your mailbox every month, and is packed with concise, ready-to-go insights. We also deliver a convenient email version.

–> Our Exclusive Website

You get full access to our subscribers-only website, where portfolios, updates and reports are available 24/7. We also collect all the news on each stock in our portfolio – no more endless surfing for information.

–> Our Urgent Alerts

Here's my favorite feature: our urgent alert system. We notify you by email (and on our website) about timely changes. Don't lose out because you missed the news. The market is constantly changing (though 99% of those changes won't affect you – we filter through all of that), and our alerts keep you up-to-date.

–> Our NEW Subscriber Forums

Moderated by me and my fellow analysts. Get all of your questions answered, and read questions from other subscribers.

–> AND BEST OF ALL? Our Award-Winning Performance…

We're rated #1 by Hulbert for the best risk-adjusted return for the last 15 years. We've won the Newsletter Publishers Foundation's "Best Financial Advisory Newsletter" award twice in the past five years, beating out hundreds of other advisories.

As I highlighted earlier, we recommend 55 stocks in our two portfolios.

These include:

18 growth stocks with total returns in the triple digits and above, including our big winners: 552%, 864%, 957%, 1,021% and 1,081%.

26 income stocks with returns in the double digits, and 7 in the triple-digits.

There are only 4 losers in the whole portfolio (3 Growth, 1 Income), the worst of which is down only -14.9%.

And don't forget about the key to a golden retirement – high yields like these…

…and dozens more.

We also have a top-notch customer care team who are directly available (no phone trees or recordings) to help you manage your subscription.

You won't get customer service like that from a Wall Street broker.

My Subscribers Say It Best

"You have so much good information and knowledge and it is incredible that you can find the time to answer so many people's questions! You are amazing and I am so very grateful."
– Barbara M. K.

"My father told me, 'There is only one investment newsletter that I find useful and I urge you to continue reading, and that's Utility Forecaster.' I have been reading – and profiting from – Utility Forecaster ever since." – Professor Leif C.

"I am a forever subscriber. I would have been a goner if I did not run into his
– Ed R.

But I'd like you to be able to see this for yourself…

That's why I've arranged for a 90-day trial where you can try Utility Forecaster with complete confidence – a 100% hassle-free refund if you don't love it.

Industry Publication
$800/1 year

Broker (Average Fees)
$4,816/1 year

Utility Forecaster
$149/1 year

As you can see, we don't make much money up front. Our pricing structure is based on loyal subscribers who renew year after year.

We have the highest renewal rate in the industry – that's because
we deliver on our promises.

But it gets better…

We're currently offering an exclusive discount for new subscribers who respond in the next two weeks.

Limited-time exclusive pricing:

$99/ 1 year (saves $50)

$179/ 2 years (saves $120)

Lock in your exclusive, limited-time savings with a 2-year subscription.

With your 1-year membership you'll also receive three free special reports:

  • BONUS REPORT #1: The Real-World Renewable – Not only is this clean, cheap energy source already up and running, it's generating profits and dividends from stocks virtually unknown to all but a clued-in few investors – like ours. Besides actually working, the real-world renewable boasts immense untapped potential right here in North America. Unlike wind and solar, this energy never shuts down. Neither will the profits.
  • BONUS REPORT #2: Bounceback Dream List – A unique collection of undervalued utilities – pure buying heaven for safety-first investors. In this report, I uncover a basket of stocks with 10-to-1 upside, along with their "dream prices," downward breaks that signal BUY, BUY, BUY – and years of soaring bounceback gains for us.
  • BONUS REPORT #3: Broadband Billions – The Second Wave of the historic wireless revolution is hitting. The global tsunami of smartphones has created an explosion of demand for connectivity – countless "apps" offering everything from social networking to sports scores and stock quotes. Now, the industry is getting into the entertainment business – movies and live TV. It's high-tech catnip for this generation – you don't want to miss the profits!

As investors ourselves, we know that no advisory is right for everyone. If you don't like everything you see, you can cancel in the first 90 days and we'll refund your money. All of it.

Need more time? It's still easy to cancel later, and we'll always refund the unused portion of your subscription.

The 2-year option is the best value.


If you try a 2-year Utility Forecaster subscription today, you'll lock in the lowest available rate for two years, and you'll also receive two more special reports with our compliments:

  • BONUS REPORT #4: Liquid Gold Rush – The shortage of clean water is growing ever more critical. The Chinese and Saudis are grabbing all they can. India is desperate for it. The UK is afraid their supply is running out. Scores of nations – including the U.S. – are willing to pay a premium for it. A select group of private companies is ready to fill the need – we'll secure a steady stream of income and growth from them for the foreseeable future.
  • BONUS REPORT #5: Powering China – A truly "electrifying" story, China's race to the 21st century is the greatest profit opportunity of its kind since the powering of the U.S. over a century ago. To accomplish China's ambitious goal, a whole new kind of global utility has evolved: multifaceted companies that will bring progress to China's billion-plus people – and profits to you and me.

So it costs you nothing to try Utility Forecaster, and it can offer everything you need to secure your retirement.


The special reports are yours to keep, whatever you decide, and will be valuable for years to come.

Remember – nobody is going to take care of your retirement for you.

We've spent 24 years helping investors just like you ensure the success of their financial future. Join us in reaping the rewards of safe, conscientious investing.

Always wishing you the best,

David, Ari and Richard

P.S. Just test Utility Forecaster out for a month or two so that you can make an informed final decision when you're ready. It won't cost you anything if you decide that it's not for you.

RATED #1 by HULBERT – Best Risk-Adjusted Return for the Last 15 Years

Don't miss out – order your no-risk trial of Utility Forecaster today.

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