There are many proposals circulating on how to cut government costs, being recommended by renowned economists and even by US Treasury.
One that’s certainly making splashes among federal government employees is the recent proposal being reported, composed by Heritage foundation, a group who definitely has the ear of the current administration.
Anything is possible. But watch what lawmakers are able to do, not just what it said.
Proposals like these tend to be like warning shots. Most seem to be constructed to overshoot, which can be unsettling if it may impact you directly.
Of note, the impact of any major shifts in retirement policy are certainly worth watching. Increases in salary, grade, and step increases are all just a means to an end. That “end” for each of us is commonly retirement.
A $15k bump in pay from a grade increase is considerably less important for people who have $5m+ accessible for retirement. But legislation that would impede your ability to work up to $5m in retirement savings, is worth watching.
So keep an eye peeled for any new methodologies that might boost retirement accounts even on low income. That skill alone, might be the most valuable skill Americans can have.
Teach yourself the skill of attaining 50%+ returns on investments. Know how to invest using leveraged assets – such as real estate, using margin, leveraged ETF’s, and stock options.
Successfully leveraging compounding interest over a decade or more may allow for much greater portfolio value than any salary or grade increases. Learning how to achieve this within a self-managed retirement account is worth learning.
Microsoft stock price starting in 1991 ran about 50 fold in about a decade. With 2x margin, that’s 100 fold gains. Then Apple did the same thing starting in 2003. Identifying two simple trades like these, but over the next couple decades would turn a $100k investment into $10m, then $10m into $1b.
For some people, two simple trades with margin over a couple decades to a billion dollar portfolio is unattractive. For others, this might be an ideal scenario.
Point being, watch what lawmakers are doing that might obstruct this.
Talk is cheap. Watching actions.