Here are short summaries of three of the most interesting and thought-provoking items that have crossed my desk this week. Enjoy… and tell us what you think!
Would you be prepared if you suffered a 30% pay cut?
A shocking new report reveals that the average person’s pay levels off when they’re in their 40’s. After that, about all you’ll be likely to count on will be cost-of-living adjustments to keep pace with inflation.
That will come as a real surprise to many people who assume their pay will continue to rise as they get older.
And if you lose your job while in your 50’s, you’re likely to remain jobless longer than when you were younger, according to the report.
Read this sobering and well documented article from the Wall Street Journal.1
What’s your best self-defense? When planning for retirement, assume the only salary increases you’ll get will be cost-of-living adjustments. And identify a worse-case scenario – such as a 20% pay cut during your final ten years in the workforce – and try living on that income and putting the rest into savings.
I hope you enjoy these short summaries of four of the most interesting and thought-provoking items that have crossed my desk this week…
401(k) savings reach a 12-year high
However, half of all workers aren’tconfident about their retirement future. No wonder, considering 56% say they’ve saved less than $25,000.1
According to an article in USA Today2, many 401(k) participants increased their contribution some this past year. If you’re one of them, or are considering doing that, here are some things to think about:
After a “lost” decade for stocks, before the market turned around in 2009, the 10-year returns of the S&P 500 were negative. Even after a near-record recovery, the 10-year returns remain meager – just 2.7% on an annualized basis for the ten years ending in April.3
That just about equals the inflation rate for that period, wiping out any real gain you might have had for the decade. It also assumes you have no fees or costs (401(k)’s have some of the highest costs) AND assumes you’ll pay no taxes!
And speaking of taxes… what direction do you think tax rates are going over the long term?
If you think they’re going up, as most people we’ve surveyed do, and you’re successful in growing a nest-egg in your 401(k), you’re only going to pay higher taxes on a bigger number!
In every economy – whether boom or bust – opportunities arise. Unfortunately, most people don’t have the financial resources to take advantage of them.
This is an inspiring story of how people are using the Bank On Yourself method to be in a position to take advantage of some amazing opportunities…
Here’s a new reality: You need cash now more than ever. Not credit. Not equity. Cash.” – “Why Cash is King,” Men’s Health, November, 2010 issue
“Bank On Yourselfers” Joni and Dave Schultz
Take Joni and Dave Schultz, who just happen to be my sister- and brother-in-law. Joni is a hospital department supervisor and Dave just retired from his job in construction.
“Bank On Yourselfers” Joni and Dave Schultz
They came to visit us recently, and Joni’s first comment when she walked in the door was, “Now I get it! I understand why Bank On Yourself is so much better than using a credit card or finance company, and why it’s even better than paying cash for stuff!”
Joni and Dave started a Bank On Yourself policy about five years ago, in order to supplement their retirement income and add predictability to their financial plan.
But they’d never used it to finance any purchases… until now.
It was almost two years ago that Dan Proskauer – a Vice President of technology engineering for a major health care company who holds three U.S. patents – first heard of Bank On Yourself.
Dan lives below his means, has significant savings discipline, and is a sophisticated investor. But when the financial crisis hit, Dan realized he had nothing to show for decades of saving and investing his hard-earned money and “doing all the right things” we’ve been taught to do.
Dan Proskauer
He felt angry, betrayed… and willing to open his mind and find out if there was something better out there.
Dan is very analytical and has since spent literally hundreds of hoursinvestigating Bank On Yourself. He has already started seven Bank On Yourself-type policies because, as he puts it, “the more I look into Bank On Yourself, the better it looks.”
Dan recently contacted me and generously offered to share his findings with you. Whether you already use Bank On Yourself, or you’ve been considering adding it to your financial plan, you’ll learn something of value from this interview. You can listen to the interview by pressing the play button below, or you can download the entire interview as an MP3 and listen on your own player or iPod…
The surprising result of Dan’s research into the rate of return of a Bank On Yourself-type policy – and why he feels the additional “intangible” benefits make it the best way to build a financial foundation in both good times andbad
Why Dan has seven different policies – and is getting ready to start more
Why Bank On Yourself will hold its own against things people worry about – including inflation, deflation and fluctuating interest rates
The two downsides to Bank On Yourself that Dan found
Why Dan believes it’s critical to use a Bank On Yourself Professional to set-up your policy… and how getting knowledgeable, on-going coaching and advice can result in your having far more wealth over your lifetime, while ensuring you don’t lose the tax advantages of Bank On Yourself
Why Dan – like hundreds of thousands of others who use the Bank On Yourself method – says the onlyregret he has is that he didn’t know about this sooner
Dan’s advice to anyone who’s still sitting on the fence and hasn’t started yet
You can listen to the interview by pressing the play button below, or you can download the entire interview as an MP3 and listen on your own player or iPod…
The more I look into Bank On Yourself, the better it looks.”
– Dan Proskaur
The ultimate financial security blanket
If you haven’t started to Bank On Yourself yet, it’s free and there’s no-obligation to request an Analysis and find out what your bottom line numbers and results could be if you added Bank On Yourself to your financial plan.
When you request your Analysis, you’ll also get a referral to one of only 200 financial advisors in the country who have taken the rigorous training and meet the requirements to be a Bank On Yourself Professional, like the one Dan is working with.
Request your free Analysis now, so you can have the peace of mind that comes with knowingyour financial future will be one you can predict and count on!
We want your feedback! Tell us what below what YOU think of Dan’s interview below…
Bill Clinton was President, the world awaited the potentially disastrous consequences of the Y2K computer bug, and – oh, yeah – the Dow closed above 11,000 for the first time in history.
The date was May 3rd, 1999, and to quote Yogi Berra, nearly eleven years later,
This is like deja vu all over again”
The Wall Street spin-makers are pointing out what a “big accomplishment it is for a measure that was below 7,000 only a year ago” to recapture the 11,000 level.
Before we pop the cork on a bottle of champagne, here’s a few sobering questions to ask yourself…
