For most, the thought of having one’s retirement account wiped out is almost nightmarish, to put it bluntly. The reason should be quite obvious; what rational human being would want to accumulate their hard-earned savings over several decades of labor, to then one day find out that all the money saved up from this labor is now gone?
For the average citizen, 401k plans represent a common vehicle to park one’s retirement assets, which often get invested in money markets due to their low risk nature. In reality, most people have no idea what their money is even doing in these money market accounts; they simply just look at their balances and make sure they are going up.
However, it might behoove people to start paying attention to exactly what is happening in their retirement accounts because it seems that many retirement accounts are going to be taking on a lot more treasury bonds into their portfolio, which equates to investing in the government debt of the United States. With many countries starting to bypass the dollar and divest from U.S. treasuries, the government is in need of buyers to keep up with deficits and it looks like the retirement accounts of Americans are going to fill that void.
This is quite an interesting proposition, as the United States government debt has exploded in the past decade to almost 19 trillion dollars at the current moment. While the government guarantees its treasury bonds, one has to really wonder whether they can fulfill all these obligations going into the future, especially in the current state of affairs. If people do not check-in with their plans and reallocate money, it seems that many of their funds will be pushed into treasuries without them even signing on to anything.
The Last American Vagabond wanted to simply touch on this issue and present the following video by The SGT Report, so that those with retirement accounts are aware and have the surface level information to dive deeper into it and act accordingly. This should not be brushed over lightly, especially those who have worked hard and have families to feed.