Use the power of leverage for your retirement just like you did when you bought your home
By: Neal Parrish
Use the power of leverage for your retirement just like you did when you bought your home
Would you consider yourself to be open-minded if there was a way to get you more income in retirement than your current retirement savings strategy? I’m going to assume the answer is yes. So read on.
Why did you get a mortgage on your house? For most people, it is because they did not have enough cash to buy the size house they wanted. So, people leverage the bank’s money and use a little bit of their own to buy a house.
That’s a very common practice that allows people to get the kind of house they want.
But you probably didn’t know that you can do the same thing with your retirement. You can use the power of leverage, like getting a mortgage for your house, to get the kind of standard of living you want in retirement.
The result is 60% to 100% more income in retirement per year.
Most people are saving only 9% of their income and that is not enough to provide the kind of standard of living in retirement most people want. Studies show that people should be saving 33% to maintain their current standard of living into retirement.
The reality of saving 33% is hard to swallow because most of us can’t afford to save that much.
By using the power of leverage and getting someone else, such as a bank, to contribute to your retirement can help you get the results you are looking for?
Why is using leverage so important? Today, most people are on their own when it comes to saving for retirement. Not many people have matching plans at work or pensions. In the good ole days, those were common and Social Security was properly funded and the banks were paying 18%.
None of those are the norm anymore so it is up to everyone to save for their retirement by themselves.
Also, when you go to retire your total account value will be made up of the money that you put into the account and the other part will be the growth. A recent study shows that 74% of the asset value comes from what someone saves. That means only 26% is from growth and interest. So, people need to be more focused on how they can increase their savings, that 74%, to help them have the kind of retirement they want.
That’s where leverage comes in. This program will give someone between a 2 to 1 and 3 to 1 match.
In addition to people loving the previously mentioned matching, they love that there are no contribution limitations, no matching limitations, no income limitations, no 59 ½ or RMD rules, the income is tax-free, there is zero market risk, fantastic growth, and it is funded in only five years.
For one of our clients, we showed him how we can increase his annual retirement income from $36,000 a year, from how 401K, to over $60,000 a year using this program.
The income from his 401K is at risk in the market and is subject to higher taxes in the future. His big concern was future tax rates increasing because the government has pumped over $3,000,000,000,000 [that’s three trillion dollars] into the economy over the last 18 months and there is only one way to pay for that.
He liked the idea of truly diversifying his retirement portfolio and doing away with market risk and tax risk that he has in his 401K.
Would you feel more confident about your standard of living in retirement if you had more money being saved on your behalf and a way to grow your money without risk?
Not everyone qualifies for this program so if you want to see if you qualify schedule a quick call with our CEO, Cory Carlton, to learn how this might benefit you and your family. You can schedule a call with him by CLICKING HERE.
ABOUT THE AUTHOR: Neal Parrish is an Investment Advisor Representative and licensed insurance advisor that focuses on bringing new ideas to his clients that will help them have the retirement of their dreams. Neal has been able to protect his clients' retirement assets and provide more income during retirement by using strategies other advisors are unfamiliar with. In addition to being an exceptional advisor, Neal enjoys spending time with his wife, Crystal, and their twin boys. Neal is a huge fan of Vanderbilt sports and is celebrating his 50th birthday on July 4th. Very fitting for this patriot.