Don’t run out of Money before you run out of Life.
Here are a bunch of eye-opening facts followed up by even more important eye-opening questions that will force you to think about how much money you have to live on now, and how much you will need later. Later, means as soon as tomorrow. Here are a few quickies to ponder. Are you certain you won’t lose your job or your business? Are you certain you, or someone you love and care for, doesn’t get seriously ill? Are you insured for a serious health care expenditure? Are you positive we won’t have another financial disaster like we did only a few years ago? A few weeks ago, Target was hacked and over 60 million customers had their identities stolen, same thing also recently happened with ultra prestigious Neiman Marcus. I just got my e-mail account working again. Me and tens of millions of Yahoo e-mail users were out of service for several days, it may be cyber-hacking. Not only do our governmental agencies like the NSA watch us and listen in on all our electronic communications, but I recently learned on the very successful TV show Shark Tank, that strangers can be viewing us through that little camera lens on the top of our home computers, laptops, cell phones or DVRs. Is there any electronic stuff in YOUR bedroom or bathroom? Did you ever think someday you may be an unwilling porn star?
Obviously, I didn’t mean to scare you, but forewarned is forearmed. So if it takes a shock of awareness to get your attention about personal security and make you act, then I have done my duty. Another important part of awareness I want to share with you, is trying to get you to learn more about Financial $ecurity. Here are a few facts that may open your eyes that were recently researched and printed by well respected sources.
We hear a lot about the Rich and Famous but hear very little about the other 98%
* About 75% (that’s 3 out of every 4) of all Americans have less than $ 30,000 in total retirement savings.
* About half of middle-class workers will retire poor, or in nearly-poor conditions
* About 80% of all workers will be unable to cover all financial needs in retirement.
* Only 14% of American workers are confident that they will have enough money to retire from their job.
* Workers who just begin to work should budget to save about 8% of their net earnings, then gradually build it to about 30% throughout their working life to be able to enjoy a safe, financially secure, retirement. I think I know what you’re thinking, I don’t know anybody either who has planned so well.
* The so called “retirement” age of 65 is now an old wives tale. People have to work longer to survive financially. Pretty soon, in order to save Social Security, that retirement number will have to move up about one year every couple of years, to allow the baby boomers to participate. Baby boomers (those born between 1946 and 1964) will be retiring in droves at age 65 putting a huge financial burden on the Social Security system. These 50 to 68 year olds will also be around longer because of the ongoing incredible progress in medical science. The average life expectancy is now close to 78. Imagine how wonderful it would be when all cancers are finally cured and damaged hearts can effectively self-generate their own repair. Life time expectancy will move rapidly to over 100. Sure, it’s exciting to think about, but where is their retirement money coming from?
The Experts weigh in and come up Empty
My next book after “101 Ways to Stop Hating Dating,” is called “The Best Financial $urvival Guide” and should be available in early spring 2014. After I finished writing the financial book, I wanted to see what the competition was doing, so I bought many of the top selling financial books and read them. Most of them got into intricate details about how to balance a portfolio and where to place your savings so you will be able to retire. In my opinion, they left out how to deal with a large numbers of variables. Things are constantly changing and ones assumptions also have to change. Most other financial authors lock in certain investment parameters and then when several variables change, either within your control or out of your control, most are not equipped to change/update the original plan. Retirement planning is a very complex issue. It is prone to many, often significant errors in estimation, and usually contain a LARGE margin of potential miscalculation. You must build in a confidence buffer, because you’ll have to change many preconceived notions (assumptions), and what they’ll do to your retirement expectations. Very often planners over-estimate income and dramatically underestimate expenses. It’s not quite like that old truism “Garbage in-Garbage out” but no matter how you begin, you must keep updating those variables. One quick note that will affect future plans, is that we are now living in a time of practically zero inflation, (except for food and fuel costs which are strangely left out of the inflation calculations). Inflation will return, we don’t know when and how severely, so keep this formula in mind. Your income is; return on investment, plus cash from ( job, Social Security, dividend paying stocks, pension income, and any other net income), MINUS the cost of inflation.
Many “older” books that are ironically still for sale, have truisms that no longer are true. There used to be a very popular hypothesis called the 4% theory. Simply stated, it suggested that you take out 4% every year from your retirement funds, and the balance of the invested dollars will make up for the lost 4%. The theory was based on having the rest of the fund “cover” the missing 4% with guaranteed net investment dollars. In the past, Triple A tax free bonds paid at least 4%, which in effect provided the money to live on. Today you can’t even find a Triple A tax free bond that even approaches a 2% yield. Bank interest is under 1% and is taxable, so until we have inflation to increase those yields at least double, we cannot use the old 4% theory. The old popular “Monte Carlo Technique” is a very complicated system that also has fallen on hard times, and doesn’t work in our current financial environment, so you are wasting your money looking into purchasing non-current financial advice books.
How “The Best Financial $urvival Guide” is Different.
I don’t only look far ahead to retirement, I talk about starting today and what to do to increase your current “net” income. My Book focuses on all the various things you can and should do to save money ASAP…BONUS: Direct from the book, here is tip # 1.. Do you think you can make 15% to 19% on your money? I didn’t think so, but you are enabling your bank to get it from you when you don’t pay off your credit card balance each month. DO NOT FINANCE YOUR DEBT. Stop buying so damm much!!!. When you finally learn the difference between Want and Need, you are finally on the road to financial survival. How would you like to cut your food costs in half or more. It’s right there before you, every day in your newspaper. Watch one less TV program a day and spend that time clipping coupons. Look for bargains and sales. If you can swap your car without much expense, replace it with a non gas guzzler. Take those savings and pay down your credit cards. When they are paid off, have a card cutting ceremony. (Note. You really should cut them up now, but I trust you not to use them again until you pay them off, then invite me to that card gashing party.)
Final Words of Wisdom
Well, if you read this far, I apologize for yelling at you, but between you and me, we all need it sometimes. We tend to procrastinate. Putting off saving money, putting off retirement planning, putting off decreasing that usurious credit card financial rape, is just being lazy. Tomorrow will be just fine. Well you know tomorrow never comes, but what does come, are days that rapidly disappear. Fill in your favorite word to complete the expression, “Where did the; day, week, month, year, time, life…go? My old timer friends often say, “Life is like a roll of toilet paper, the closer you get to the end, the faster it goes,” or “Times they are a fleeting.” You just have to roll up your sleeves and start now. Make a list…I said make a list NOW!! Write down your revised New Years resolutions and start with reducing or removing the charges on your credit cards, believe me everything else becomes easier. Then write down how and where you will save money. My book is chock full of additional money savings ideas.
My book will tell you how to get the job or start the business of your dreams, but first things first. Now start that list.
Good luck!! Welcome to the world of the survivors. No victims allowed.
Write to me and tell me how you saved or earned money.
I love to write and help people, and I love to write for YOU.
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