Financial Amnesia

By |2020-12-01T22:00:20+00:00December 1st, 2020|Annuities, Retirement Planning|

Are you planning to retire in 5-10 years? Don’t forget about the 2008-2009 financial crisis.

 

Following the 2008-2009 recession, nearly every small business owner and self-employed professional experienced severe revenue declines. Bankruptcies spiked, and many Americans lost their homes, their companies, and their retirement accounts. The struggle to bounce back from this economic calamity took almost four years. Intellectually, most Americans understood that erosive forces were chipping away at our money, minute by minute.

We realized that something rotten at the core of conventional financial planning made it difficult for ordinary people to achieve steady gains without taking on massive risks. As is usually the case, the good times returned. People who had struggled to keep their homes, maintain their lifestyles, or rebuild their retirement nest eggs after the 2008 recession suddenly developed terrible cases of financial amnesia.

Instead of taking advantage of the good times to build up their emergency savings and retirement funds, people relegated the 2008-09 economic crisis to a dusty, forgotten corner of their brains. Americans began to do some of the same things that created the crisis in the first place, taking out mortgages they could barely afford, taking on more debt, and exposing a disproportionate amount of their savings to market risk. A shocking number of people over the age of 65 currently have portfolios with over 50% in the stock market, even though they lack the time needed to recover if there is another downturn.

Investing is, of course, a good and necessary thing. However, improving your income stream doesn’t mean that you need to chase after returns. Growth shouldn’t have to come at the expense of saving for the inevitable emergencies life tosses our way. Nor should growing wealth impede generating predictable income streams so that you won’t run out of money when you retire.

Can you afford to have LAZY money?

If you think your money doesn’t go very far in 2020, you are correct. The dollar has been losing purchasing power for many years now. For example, $100 in 1913 would only buy around four dollars’ worth of goods and services in 2020. Inflation is relentlessly pummeling your savings and stealing your peace of mind. We have only begun to see the leading edge of the economic storm generated by the pandemic.

If you want to retire more comfortably and with greater peace of mind, you can’t allow your money to become lazy. Every dollar you have must do the work of three, even four, if you want a decent lifestyle in retirement. To prosper, you must zealously safeguard every dollar you earn and employ proven safe money concepts.

Using a powerful combination of safe money products, such as life insurance and annuities, you can:

  • Create guaranteed income streams that will become the bedrock of your retirement plan. Doing this will ensure that even if other investments fail, you will still have some income upon which you can rely.
  • Become your own source of financing. One cash management tool I use will let you create your own source of funding for big-ticket items. Imagine being able to modernize your home, purchase a new vehicle, or even pay for a much-needed vacation without having to pay interest to a bank or finance company.
  • Experience superior growth: If you currently keep your cash in a bank CD or savings account, you are getting little to no interest. Wouldn’t you prefer to GROW that money instead?

Realize tax-efficient strategies: Using this strategy, you won’t need to pay any more tax than is necessary, potentially saving you THOUSANDS of dollars every year.

Control your cash: Using select safe money products, you can ensure that you have complete control of your money. Use it for what you want when you want, knowing that it will continue to grow as if you never took out a penny.

That’s just a handful of the benefits you’ll experience when you take your dollars out of the anemic money market and savings accounts and create a safe money “core” for your retirement plan. If you’d like to drill down into any of these concepts, contact me, and I will provide you with free materials designed to help you make the best money decisions possible.

Creating your dream retirement is challenging in these tumultuous times. However, it’s not impossible. Start with a foundation of safety, understand your own goals and risk tolerance, and work with a competent financial advisor who has your best interests in mind.

 

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About the Author:

Teresa is the president and CEO of Living Wealthy Financial Group, based in Austin, Texas. As the host of the Living Wealthy Radio, she can share her passion for educating real people about the truth of how their money can work for them. She has counseled thousands of ordinary Americans across the nation, helping them avoid exposing their wealth to eroding factors such as taxes, stock market losses, and inflation. Website: livingwealthyfinancial.com

Office: (800) 382-0830 | Living Wealthy Financial