ERISA – the Law that Keeps on Taking, Top Insurance Lawyer, Frank N. Darras Warns Boomers, “At Age 70, You Must Exit the Stock Market or Risk Losing 50% of Your Savings”
“As the leading disability insurance lawyer in the nation, I review thousands of ERISA cases each month,” says Frank N. Darras.
According to Robert T. Kiyosaki, author of Rich Dad’s Prophecy, this law, passed in 1974 will provoke the stock market crash of 2016. He calls it “the law that changed the world,” and Darras agrees this is a real possibility and baby boomers should protect themselves now.
Kiyosaki warns that first, “there will be a market sell-off caused by baby-boomers converting to cash. Secondly, the cost of living and medical costs will go up. And the third reason is people will make bad decisions in how they handle their money.
“What is terrifying about ERISA is that it in an uncertain economy, it further raises anxiety levels of the Baby Boomers reaching retirement age in the next 5 years. The Employee Retirement Income Security Act of 1974, was supposed to benefit Americans’ retirement and disability plans, yet it enacts harsh penalties on retirees who do not exit the stock market by age 70.”
Many employees have used ERISA to save for retirement through IRA’s and 401(k)’s. Almost half, 48%, of that money is invested into the stock market. That percentage could have serious consequences on the unpredictable stock market once a large demographic, like the Baby Boomers, all start turning 70 at the same time, says Darras.
Once a retiree turns 70½ years old, they must exit the stock market and withdraw at least the required minimum or risk losing 50% of their retirement account. Chances are retirees will not be willing to pay the extra premium and risk losing that much from retirement. Imagine the consequences to the stock market if all of the Baby Boomers try to withdraw concurrently. Regardless of where you live, whether it is in Alabama, New Mexico, Oregon or West Virginia, ERISA applies, no state is exempt.
“Considering the devastating recession that already occurred, it is scary to think of the possible repercussions that ERISA’s policy will have on the stock market. Baby boomers reaching retirement age should be aware of the law and consider withdrawing before age 70,” says Darras.
The fine line on so many of ERISA’s policies is just one more reason to consider private retirement and insurance options. Disability insurance provided by ERISA has a long reputation of denied claims and workers never receiving their proper insurance benefits. Often, workers who face long-term disability have to take funds from their retirement just to make up for the holes their company’s long- term disability ERISA policy leaves.
“Now more than ever, workers should consider private long-term disability and long-term care insurance and retirement plans that aren’t under the unreliable and often sticky government plans. Paying a little more for individual coverage may save you a lot later-both money and stress,” says Darras.