Beware of These Retirement Plans

3년 전

Conventional Retirement is a Plan to be Poor

According to the Social Security Department, the average benefit in 2018 will be $1,404 a month.

This is equivalent to having an $8 per hour job.

Originally sold as a temporary program, it has morphed into a permanent government retirement plan that tens of millions of our senior citizens rely on.

Nearly half of the unmarried persons who receive Social Security completely depend on it for their income.

Like most things in government, though, it’s completely broken, and the only reason it hasn’t completely imploded is that the Treasury Department has suppressed the real inflation rate. If the government actually paid a real cost of living increase, according to economist John Williams, the average Social Security check for 2018 would be $2,041 per month, 45% higher than what seniors receive today.

Today, 56 million people receive Social Security, but as the boomers continue to retire, this number will climb to 88 million by 2035.

In 1945, 42 workers supported every 1 retiree. By 2035, that number will be down to 2:1, and that’s with the government assuming the labor force participation will be the same as it is today (think robots).

There are equally horrendous numbers for the other conventional retirement plans.

*** 41% of Americans have no savings at all! Not even enough to cover a $500 emergency.

*** Pensions across the nation are on the verge of bankruptcy.

*** 401(k)s have proven to be a failed experiment for savers, destroyed by fees.

The truth is that the strategy for a conventional retirement is failing.

It’s an unworthy objective.

Prior to the 20th century, this idea that you would live some carefree life and do nothing for 10 to 20 years didn’t exist.

In fact, for the vast majority of the population on planet Earth, this is still the case.

So what’s a financial plan worth living out? I think it’s a very simple plan, and if you want, you can still retire.

1. Do something you enjoy for a living.

If you have to work through your 70s, so what – go enjoy the day working.

2. Create multiple streams of income in your life.

Generate enough passive income to pay for your basic monthly expenses. This, by definition, is true financial independence.

It’s scary when you actually read into the entire idea behind these tax-deferred retirement saving plans, like a 401(k) or IRA – they are plans for poverty.

They assume you’ll be at the lowest tax bracket at the age of 65 and that you’re an idiot that will have NO other sources of income. This is just horrible planning, in our opinion.

3. Live a sustainable lifestyle.

Scrap the idea of the debt fueled lifestyle when it comes to a car, education, and other things that, if you truly need, don’t require any financing.

Summary: The energy and effort aimed at a conventional retirement is a mistake, in my opinion.

Instead, focus on living a happy, sustainable lifestyle, with multiple streams of income. Be an aggressive saver and look for cash-flowing investments that will give you the peaceful financial security we are all looking for.

Written by Daniel Ameduri for 2018-03-14


Special videos: I’ve recently recorded a few personal YouTube videos about how to prepare and teach children about money, as well as some of the serious flaws in today’s education system.

Watch and share…

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100% agree with everything here! Phenomenal article, and a real wake up call for many people.

I believe it is so important to be financially free! It is crucial that everyone builds their own infrastructure, and is not at all dependent on the government or any other institution, because they are not perfect, and can easily fail! Many people do not seem to understand this, and it both angers and scares me.

Also watched the additional videos at the bottom, I completely agree. Yes, public schooling is a total waste of time and energy. I am a Junior at a public school right now, and it is awful! I would say half of my teachers are just over payed babysitters that teach dated and unimportant topics, some don't even teach at all. Note, that I have had some amazing teachers too. Some that have really taught me important lessons and have had a positive impact on my life, but they are a part of a very small minority.

As the quote goes, "formal education will make you a living, self education will make you a fortune". I for one, am very focused on self educating myself. I intend to teach myself all the important things that aren't taught in the school system. I am fascinated by finance and investing, and my goal is to start my own hedge fund someday.

Anyways, this comment is already much longer then I originally planned. Thank you again for this amazing post!