Learn the Steps Necessary for a Safe Retirement

Millionaires were created during the 1930s great depression, and millionaires will be created in the next great depression using something guaranteed safe!

In the 1990s, financial planners taught clients the inflation myth.  “You must be invested to offset inflation!”  If you invested $500,000 on January 1, 2000, and your investments preformed as well as the Dow Jones Industrial Average, what was the value of your portfolio on August 1, 2010?  Answer: less than $500,000.  The Dow was about the same but don’t forget about the fees and commissions paid.  What was the inflation rate?  According to the Federal Reserve Bank of Minneapolis, it was 28%.

Plus, you would have made a lot of money in some years and lost a lot of money in other years.  If you made any investment changes in the recovery years, you may have paid a capital gains tax.  Most of the time you were just hoping to recover past loses.  So, how did your financial planner do?  By the way, the capital gains tax will rise to your highest marginal rate (as high as 39.6%) in 2011.  It’s time to make a change!

Real wealth requires the accumulation and preservation of money.  At least, that’s how I did it!  You could have placed the same $500,000 in a safe bank account and earned an average 4% each year.  How much money did you have on August 1, 2010?  Answer: about $590,000 after paying income tax (assuming a 15% marginal tax rate).

My approach offers something guaranteed safe in an income tax deferred environment; a fixed indexed annuity using my proprietary methodology.  What if, you were my client with $500,000 on January 1, 2000, and earned the same annual interest rate shown on the kit insert.  How much money would you have on August 1, 2010?  Well, that hypothetical, but it’s likely you would have had over $1,000,000.  That’s the point!  You would have never lost any money, and the $500,000 would have earned compound interest each year.  Income-tax deferred environment means compounding the interest on the $500,000, compounding the interest on the past earnings, and compounding the interest on the tax you did not pay.  And, there are no fees and you pay no commissions.  That’s how you create real wealth!  At least, that’s how I accumulated my multi-million dollar retirement plan over the last ten years.  Sp, if you’re going to take advice, take advice from someone who has actually made money!

Why is the economy getting worse?

Using a U.S. Government survey on family spending in 1993, Economist Harry Dent was able to forecast the trends of most products; as well as, the national economy.  The unemployment rate did not cause the problem; rather, it is an indication.  A vast majority of the country is still working!  It’s not because taxes are too high; income tax rates haven’t changed yet!  There’s only one thing that’s changed.

It’s simple!  The largest segment of the population is still the Baby Boomer Generation.  What’s changed is the Baby Boomers’ spending pattern.  If you ever raised children, you know children are expensive.  Once the children leave, you spend less.  For the first time in their life, Baby Boomers are empty nesters and have extra money at the end of the month.  Instead of spending money on their children, they are reducing debt and getting ready for retirement.  If you’re over age 50, you understand what I am saying. 

Thus, a major portion of the population is reducing debt (deleveraging) and spending less.  As the national consumption rate declines year after year, the country enters the next great depression.  The evidence is clear!

When will it get better?

The “X-Generation” is the population raising their children.  However, their numbers are so small by comparison they cannot drive the economy as well as the Baby Boomers.  You will need to wait until the larger “Echo Boomer Generation” becomes the nation’s big spenders in 2023. 

We saw same economic depression in Japan!

Using Japan’s demographic data in the late 80s, Dent forecast Japan would enter their great depression by 1990, and it would last over a decade.  That’s exactly what happened.  Japan’s stock market crashed and the country has been in a depression for over a decade.  The Japanese government tried several stimulus programs and they all failed!  Their economy will never return to the pre-1990 greatness because they do not have an “Echo Boomer Generation.”  Their population is getting older and older.

The 40,000 Dow Story!

Financial planners are quick to point out Dent once forecast the Dow would reach 40,000.  That’s true!  However, Dent assumed all investments were in the stock market.  But, after 911, investments shifted to real estate and commodities; thus, the basic assumption made in 1993 changed.  Had 911 not occurred, the data shows the 40,000 would have been reached in 2007 as forecast.  He wasn’t wrong!  But, don’t expect your financial planner to agree with Dent or me.  They are only paid when you are invested.

Retirement Planning

I define retirement planning as creating a lifetime systematic income to supplement your social security.  My proprietary approach is distinctly different from financial planners and life insurance agents selling fixed indexed annuities.  Most people were told they would be able to simply spend their investment earnings.  That misrepresentation assumes the stock market never declines.  Hopefully, you have learned the falsehood of this myth as well.  As I have shown, it hasn’t worked in the last decade, and the economy wasn’t in the next great depression. 

My clients have a common profile.  They want security; not securities!  I attract people who do not want to worry about losing money.  They no longer trust their financial planner.  They want to know exactly how much money they can systematically spend for the rest of their life.  They are tired of the gimmicks, broken promises, and misrepresentations.  Once given instructions, they can follow their written retirement plan.  Do you fit my client profile?  Request my free information kit and let's get started!