Dear FutureMoneyTrends.com Member,
Stop focusing on asset accumulation. Instead, we need to center our focus on income accumulation. The retirement cartel, which is basically Wall Street and all its talking heads, has conditioned the public into focusing on asset accumulation. Just keep buying and holding… while they collect their fees.
I have no problem with retirement, but the current idea of what retirement is, is a really big scam, in my opinion. Tens of millions of people are all throwing money at the stock market, with these inaccurate beliefs that they are somehow going to see an average of a 10% return if they just hold on. Then, at the magical age of 65, they can start withdrawing, drawing down on a large nest egg until they are dead or broke.
The 10% average return is a brochure for fools, and the Wall Street propaganda machine has trained the 401k’ers and mutual fund buyers to be true believers. Here’s the problem with “average” returns.
Let’s assume you put in $20,000 and you receive the following end-of-year returns.
Year 1, 58% = $31,620
Year 2, -37% = $20,000
Year 3, 54% = $30,701
Year 4, -35% = $20,000
The average return for this scenario is 10%, however, at the end of the day, your $20,000 is still just $20,000. You haven’t moved an inch, and you can honestly say — or your broker will — that you achieved an average return of 10%.
Of course, we all know that your $20,000 — especially left in a 401k or mutual fund — would be much lower now due to dozens of fees.
96% of people managing your money work on commission. Think about that; do you really think they are looking out for you? It’s why if you desire to have an expert help you, we only recommend a fiduciary advisor, who is low fee-based, and bound lawfully to put their clients first.
Outside of speculative growth stocks that DO have a place in your wealth building strategy, a dividend cash flow-focused plan is where we believe 90% of your net worth should be active in.
Real diversification in income is also important.
- Rental Income
- Banking (Lending)
- Whole Life
- Royalty Streams
- Real Estate Investment Trusts
- Private Businesses
For the most part, the mutual fund industry exists to get Wall Street rich. It’s why the idea of retirement and buy and hold is so important, because without new money constantly flowing into Wall Street, Wall Street really can’t make money.