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Missed Fortune – Retiring Boomers Find 401(k) Plans Fall Short

Posted on | July 24, 2011

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Come Retirement, Boomers Will Be Sad Consumers

Think that 401(k) will get you enough to retire with your current standard of living?

Think again.

The Wall Street Journal recently reported that the median household headed by a person age 60-62 with a 401(k) account has less than 1/4 of what is needed to maintain their current standard of living.

This data was compiled the Federal Reserve and analyzed the Center for Retirement Research at Boston College.

401(k). The Holy Grail of retirement. What’s supposed to see you through old age.

Well, that Holy Grail is rusty and empty.

Most 401(k) participants have far too little savings for retirement, even when including their Social Security and pension savings.

Even those with substantial, six-figure 401(k) savings may likely fall short before reaching age 85.

This means they’ll probably be dusting off the ol’ resume during their supposed “golden years.”

And what’s the standard advice you continue hearing from traditional advisors?

Stay the course.

Piffle and pooh.

If you keep doing what you’ve always done, you’ll keep getting what you’ve always gotten.

Despite the millions who lost fortunes in the 2008 market crash, others didn’t lose a penny.

Those who applied Missed Fortune strategies have not only protected their serious money in a down market, but they did it safely in the worst 4-year period since the Great Depression.

Most people who follow the Missed Fortune strategies have 50 percent more than they did just 4-5 years ago.

You can do it too.

Meet with a Missed Fortune advisor today and learn how.

Taxes & Inflation: Like Acid on the Holy 401(k) Grail

Can you live on a $1,000 a month?

Of course not. Funny thing is, those who have saved at least $1 million for retirement think they’ll be just fine.

But a million dollars just ain’t what it used to be.

Because of taxes and inflation, in the future $1 million generating $6,000 a month of taxable income will only amount to about $1,000 in today’s dollars.

$1 million earning 7.2 percent interest a year should allow you to pull out $72,000 annually ($6,000/month) without depleting principal.

If you earn $68,000 a year, you’re in the 33% marginal tax bracket.

The Congressional Budget Office estimates that by mid-century most Americans will be paying at least 50% of their income in taxes.

If you paid a third of your income in taxes on $6,000 a month, that leaves you $4,000 of net spendable income per month.

But let’s not forget about inflation.

At a 5% rate of inflation the cost of living will double every 15 years and the purchasing power of the dollar will be cut in half.

30 years down the road you’ll only be able to buy the same gallons of gas, loaves of bread, prescriptions, golf greens fees, etc. for $4,000 a month that you can currently buy for $1,000 a month.

Do you have a hedge against taxes and inflation?

Missed Fortune clients do.

Are you ready to learn how they do it?

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*Life insurance policies are not investments and, accordingly, should not be purchased as an investment

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