“If I can only make $10,000 in a single year I’ll finally have made it!” (1961 as told to me in 1967)
“If one day we can live in a $100,000 house, then I know I’ve made it! (1977)
“I’ve always wanted to own a Cadillac!” (Upon securing the title in 1978 for a 1975 Coupe de Ville at his age 44 with the help of a $5,000 inheritance)
“My American Express Card – I never leave home without it!”
“No matter how many hours I work throughout the month, there always more bills to pay at the end of it.”
“Shut the damn door you’re letting all the heat out – do you think we live in a barn?”
“If I pay the oil bill on time they give me ¼ of a penny per gallon discount!” (1960’s)
“Turn off the damn lights when you leave the room – do you think I own the damn Electric Company?”
“Why don’t you look at a local college – what are the interest rates on student loans anyway?” (1979)
“You can buy your own damn car – I’ll help you with the repairs, if any!” (1978)
“I’m self employed so I don’t get a pension or any other benefits like other folks do, maybe I’ll rely on one of my 4 children in my old age.”
“At this rate, I’ll never get out from under this mortgage!” (1978)
“They keep raising my damn insurance premiums even though I have no claims!”
“One day I’d like to retire and thank God I have my Social Security to count on!”
“Are you a millionaire? No, then you can’t help me!” (Stated to every financial advisor phone solicitor)
“Mom, it’s me. I need a loan.”
“Let me see, 2 girls and 2 boys, that’s 4 college educations and two weddings. I’ll never retire!”
These statements and many more like them were made within my earshot growing up in a middle income family.Perhaps some of them sound familiar to you or that you have espoused some of them yourself.There was always food on the table, a color TV, books on the shelves and good quality cars in the driveway.What we discussed in my home was typical middle class banter and complaint, small successes and failures and hope for the future. We never discussed how money works.How to earn it, save it, invest it, reinvest it, insure it and grow it for the years and decades that lay ahead. We never discussed the “I” word, for inflation, the “D” word, for debt and the other “I” word, investing, for future goals like retirement.These discussions were not among the list of common topics of my middle income immediate family. My grandparents had some philosophies that were shared with this young impressionable child about saving a dollar and don’t spend it before you have it. Good lessons for sure, but limited in scope and depth.
I wanted to master the money game so my portfolio, (a word never mentioned in my home) would be able to replace my work activities, as my primary source of income some day for retirement.Later in life I learned that dollars invested are like your employees that work for you 24/7 without vacation time, sick leave or disability. I realized that I wanted a lot of employees in my portfolio.Today, I refer to their earning potential as, “Mark not their Dollars”, in that they earn for me in place of me. Great concept isn’t it! Like all employees in any company, they must be supervised or they will lose direction and focus. That responsibility falls to the owner of the dollars or the designee, the competent financial advisor. It’s my opinion that unless the owner wants to replace his job of accumulating capital when retired to the jobs of wealth manager, (to grow the portfolio) income producing manager, (to produce a guaranteed for life, monthly paycheck), wealth transfer manager, (estate planning professional to be sure the spouse and kids get it all and not the government), I would recommend the competent financial advisor designee, regardless the portfolio balance.
My mother’s financial philosophy was, “get a good job with benefits” as her answer to current day financial needs as well as a retirement plan for the future.Unfortunately, both 30 years ago when she said this to me and today, this philosophy offers no proof, guarantee or even a vague assurance of a secure financial future in both the short and long term.
Therefore, are there any rules to follow, investments to employ, strategies to emulate,techniques to use or products to purchase that will offer assurances and guarantees* of a secure and rewarding financial future?Before answering that question, let’s take a look back to 1967 when I was 6 years old and my father’s statements originated for me.In 1967 the consumer price index, CPI, was created to measure the effects of inflation going forward.The Federal Government declared that $1 would be $1 in purchasing power and we will compare all future dollars to this figure.Folks, that $1 that purchased $1 worth of “stuff” in 1967, only purchases 16¢ worth of “stuff” in 2008 or simply stated an 84% reduction in the purchasing power of a dollar, 41 years later. 84% reduction can you believe it? That’s just under 4.5% per year.By this same measure, the remaining 16¢ today will be worth less than 3¢ in 2050.For young people starting in the job market today, a retirement goal of accumulating $10,000,000 yes, that’s ten million, will only be worth $1,600.000 in 2009 dollars, an 84% reduction! Based on our current Federal deficits with more to come, inflation is poised to soar exacerbating this problem.But, even if historical inflation rates of the last forty years repeat for the next forty years, $1 today will be worth 16¢ when 25 year olds are 65.
So…we return to the previous question and I’ll paraphrase, is there a way to win the retirement game and prosper?The genius to the answer lies in the cause.In order to beat inflation, we need to invest in that which rises with inflation, goods and services. Though a simplistic analogy, the execution must be strategic and requires much more explanation than space allows in this column.Through a combination of discipline, talent and proper money management, the game is winnable.Got the discipline and some money yet lack the talent? Not a problem because good talent is for hire at reasonable rates.American Prosperity Group representatives are great people to learn from and work with, as we have no fees for consultations or asset based trailing charges.We have identified who the talented portfolio managers are and we are experts at matching their talent with individual investor’s needs, goals and desires, a perfect synergy! The investment and insurance companies we place client funds with compensate the APG representative directly with no additional compensation from our clients at any time – ever!
In conclusion, if you intend to retire in comfort and dignity ten years from now or later, becoming a millionaire is not an option, it’s a requirement.If you’re already retired, it’s critical that your assets be managed with great care providing guaranteed lifetime income, protection from healthcare costs or liability and longevity issues and with guaranteed death benefits.This is true whether you are a millionaire or not, as we must protect, preserve and perpetuate our wealth to the next generation to give them a fighting chance at a decent retirement.January 1st 2011 and after, the Federal estate tax bracket jumps to 55% on all of your assets over $1,000,000 when you and your spouse die.If you’ve done a great job at accumulating wealth the government will thank you by removing at least 55% of it from your kids.It is imperative that you learn how to shelter yourself from the confiscatory nature of government.Your American Prosperity Group representative can show you how to completely mitigate this issue.Want to learn more with no cost and no obligations? Check out our website or call your local APG office to get your questions answered.Take it from me; it’s a wise investment that pays dividends of knowledge, that when implemented will benefit you greatly. Call Today, the local number is below.
