Learn some of the secrets in our Freedom Fast Track coaching program to help you prosper and create true wealth in your life. Listen now to learn further about the following Five P’s of Prosperity:
1. Perspective
2. Purpose
3. Plan
4. Production
5. Progression
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The best investment for you is to invest in being a better investor in what you know best. Listen to hear more.
Listen to my previous blog about this as well.
Many believe that if they do everything they are taught by the financial industry, they will be financially free. From what I’ve seen and what common sense tells us, it’s a load of *%&@! Here’s a few reasons why:
1. Traditional savers still feel broke after years of saving. I have yet to meet someone in retirement that KNOWS their money will last for the rest of their life. Listen why. Some can do it for a certain number of years before they can’t enjoy retirement anymore. The only people I know that have peace of mind are those that invested outside of 401k/IRA’s, OR the financial advisers getting paid commissions on their clients hoping for better returns.
2. Numbers aren’t reality and people aren’t numbers. Just because some suave salesman pulls out his fancy calculator and tells you it’s going to be alright, doesn’t mean it will be. Can he/she foresee your future? What if something changes in 20 years? 20 minutes?
By the way, Mr. Adviser, stop looking at my financial assets to produce returns for you and look at me as the REAL investment!
3. Average returns are not actual returns. If they tell you “Historically, this ‘investment’ has done ___%…” ask them if they will guarantee it in writing. THEY CAN’T!
Also, you can have a positive average rate of return, and in reality, still be losing money. Watch this video to learn how.
4. Inflation is much higher than what many believe. This is the most subtle way to tax the poor and middle class so the politicians look better. Listen here.
5. Your taxes will likely be higher. Even if taxes don’t increase (which I’m sure they will), you will likely have to pay more solely due to inflation. Things get more expensive over time meaning you need more money each year.
Besides, if your retirement accounts actually succeed like your adviser crosses his/her fingers for, wouldn’t you be in a higher tax bracket? If not, it’s probably because your accounts failed.
6. You cannot accumulate enough to only live off of the interest. Like I mentioned in one of my recent podcasts, it’s nearly impossible for even the best savers to live off of 4-5% of their money each year.
7. Paying off “debts” early will shrink your nest egg. Although I am in favor of paying off liabilities, there’s a catch. If pay off your liabilities, it will take money away from your retirement. Unfortunately, you cannot eat a paid-off home. Paying off “debts” is more in the self-interest of the banks than for you. Many retirees are currently asset rich/cash poor which restricts their freedom. For alternative strategies, listen now.
Stop “planning” for retirement!!! Instead, make it happen by DOING THE OPPOSITE which gives you a better chance. Learn the “art” of investing to start becoming financially free today!
If you need further convincing, check out these scary stats!
A funny quote I heard Ben Stein quote his father saying was “Figures don’t lie, but liars figure.“ That has stuck with me, especially as I read bureau statistics and corporate reports, all of whom have a tremendous self-interest to “fluff” their statistics to make you and I feel warm, fuzzy, and cozy all over (Click to see how the bureaus or banks report their “figures”).
They publish statistics giving us a false hope of a recovery, but could backfire if we made choices based on those “facts!” Couldn’t that have a similar consequence for us as it did the failed banks when a subprime borrower would claim they made $10,000/mo. on the mortgage application when they really only made $5000/mo.? Unfortunately for us, we don’t have the government bailing us out!
I did the same thing when I was a financial adviser. If I wanted to give hope to my client (or to scare them into doing business with me), I would run numbers that were historically accurate, but using average returns, government’s inflation statistics, etc. I would show potential clients what they “could” have in retirement while offering no promises. I would even show a conservative inflation statistic of 2-3% (my inflation podcast killed this statistic) to encourage them to save more with me. By adjusting these numbers, I could show nearly any outcome I wanted! Do you see my point?
My advice is to NOT make financial choices based on speculation or so-called “official” statistics. Whether you choose to invest in business, real estate, etc, it’s up to you. In mutual funds (401k’s and IRA’s) and similar paper assets, you have high risk because they are dependent on these statistics. Why gamble your hard-earned money away? I recommend you invest where you CAN control your own statistics!
Watch this video first before listening to the podcast!
Also, refer to our video “Money Not Math” on this website to see if you can figure out what is happening to our “investments.”
On the podcast, Dale Clarke and Chris Miles discuss how 401k’s and IRA’s are affecting Americans’ ability to retire. Is there hope?
The 401k Fallout
Chris Miles teaches how you can determine what is a great rate of return in your investments and how you can actually INCREASE that return further. Listen to know more!
With the Dow Jones Index currently around 6700 points today, its lowest point in nearly 12 years, I hate to say “I TOLD YOU SO!” Oops, I guess I just did.
However, although I am not a big fan of investing money in mutual fund-based investments, like 401(k)’s, IRA’s, etc, I NEVER want people to suffer heavy losses that compels them to wake up and listen to what we are teaching. Nevertheless, loss does cause us to question our assumptions and explore new, and more effective, possibilities.
I had several clients last year (when the Dow was around 11,000) ask me about what I felt the market would do. I told each one of them that even though it seems irrational (at that time), expect the Dow to tank somewhere near 6000, and quite possibly lower because a Depression IS coming. Some took action while others did not. The ones that took action, even when it hovered around 8500, are smiling much bigger now that they took their own initiative to reallocate to safer funds.
For those that still question whether to get out or what to do, I will have you answer the following questions so you can decide for yourself:
You are not alone if you couldn’t answer these confidently. Will you wait for it to drop further before you do something? If you have more questions, feel free to comment, email me, or Dale, at cmiles@freedomfasttrack.com or dclarke@theaccreditednetwork.com.
We offer more ideas and details than the related blog we did last Fall. Listen now!
Watch and learn why so many are not able to retire even when they invest the way most people have due to a few financially destructive myths! To see further details why retirement plans are failing, click here. I also recommend reading the book, Killing Sacred Cows by Garrett Gunderson. To read a book review and synopsis, click here .
The following are tips that one can do to increase cash flow and identify resources more productively to be applied towards your economic well-being and/or Soul Purpose. Remember, that one’s perspective is more important than just going through the motions. The key is discipline to be productive with the money freed up rather than spending it on consumptive or destructive items. Each of these points can be utilized to recapture lost dollars, but can also be abused in a way that could lead to financial misery.
For blogs on other topics I have written previously visit Garrett Gunderson’s Killing Sacred Cows website.
