Worrying about running out of money during retirement is the biggest fear of about 55% Americans.
It’s understandable that Americans are worried about retirement. With most families struggling to save enough and the shift in availability of retirement funds, the uncertainty is a real concern. Most people are struggling to save anything at all and those that do have the funds, lose accessibility to them as soon as they begin to save the traditional way.
In an article by Forbes, David Randall said, “…401(k) plans are a crummy deal for millions of workers. That goes doubly for young and low-wage earners” and we agree.
Traditional retirement strategies, like maxing out their 401K or 403B, coupled with increasing costs of living leave workers with no way to put enough away to keep them comfortable in retirement. Here’s the hard proof; Statistics show that the average 401K account contains less than $100,000. To put that into perspective, that gives an account holder roughly about $5,000 per year after they retire. When looking at those numbers it becomes clear that it’s not working for the individual but it is working for Wallstreet and the government.
A new retirement strategy can help you stop worrying about having enough money saved.
Most Americans don’t have the cash to save for the large expenses in life AND their retirement. This has left countless parents across America depleting their savings and their retirement to send their children to college.
Several other parents don’t have the luxury of depleting their savings or retirement. That forces parents and children both to borrow, trapping them and their family in the debt cycle for generations to come. Starting out in debt sets you up to be in debt forever because once you begin paying financial institutions for the privilege to use their money, you begin to give up your ability to save for a secure financial future and you give up control of your current and future cash flow.
With our Tier 1 Capital Growth Process, our clients will be able to cover the cost of college and save for retirement with the same money.
The process of privatized banking lets you use your own money to secure your future. Once your customized plan is set up, you’ll have options on how you’d like to structure your payment plan.
When the time comes to get married, buy a new home or send your kid to college, you’ll be able to borrow what you need and determine your own payment plan and terms. The best part is – while you pay off what you borrowed, your money will still be earning interest and can be used to fund your retirement.
Let’s take a look at why being worried about running out of money in retirement is a legitimate concern.
Most commonly, a young graduate joins the workforce with a mountain of student loan debt. Working and paying down that debt while also paying for housing, food and other necessities is a strain on most entry level salaries.
Often faced with choices due to financial strain, most people don’t begin to seriously save for retirement until their student loan debt is paid off, roughly 10 years after college graduation. Studies show that most students get married prior to their student loan debts being paid in full and weddings aren’t cheap. With costs mounting, it may be extremely hard to put away money for a down payment to purchase a home.
Once the debt is finally paid down, the young family will often purchase a home. In most cases, this means depleting their savings for a down payment and furnishings while also agreeing to pay interest for the privilege to use the bank’s money for 30 years.
For many American families, the purchase of their first home is the first time they think about retirement.
However, that’s also when they start to think about having children. As Americans add expenses to the cost of their lifestyle, what’s left over to save for retirement becomes less and less. It’s at this point that most often families dig into their retirement accounts to fund the cost of their lifestyle.
Once the child grows up, it’s time to think about paying for college. More and more families are digging into their retirement accounts to help their kids afford college. This forces most Americans to retire without enough savings for their retirement. Since Social Security is set to be completely depleted by 2034, there may not be any source of income to fall back on for those who run short.
With our method the financial situation of the recent graduate looks very different.
The recent graduate begins saving for retirement straight out of college. Tier 1 designs a plan specific for their current income and their goals. The graduate begins to save for retirement that day with a plan to borrow against it later to pay down college debt faster or for a down payment on their first home. We will help you use your money to create a pool of cash, that you can borrow against to pay down your debt faster.
When the time comes to purchase a home, the graduate has the funds needed for a down payment by borrowing against their pool of cash and when their first child is born, the cost of college is available, from the same pool of cash. Without worry or a depleted savings, they are able to retire with an amount that will fund their future lifestyle.
Privatized banking is the solution.
Since you’ll be able to access cash to fund those expenses, you don’t have to worry about having the funds for them. You’ll be borrowing money against your specially designed life insurance policy. These policies are designed for high cash accumulation and the earlier you begin to save the more returns you see.
If you’re worried about having enough for retirement, paying for college or any other lifestyle choices– contact us so we can help you learn EXACTLY where you are losing your hard earned money – UNKNOWINGLY AND UNNECESSARILY.