Americans Need Help Preparing For Retirement

Americans are loosing confidence in their readiness for retirement. We are not talking about a small drop we are talking about a major shift. Almost half of Americans surveyed are less confident in their ability to retire tody than they were one year ago. News reports tell us why. Markets down 30-40%, 401K Plans assets have lost well over 20 % and now approaching 30%. Less than 15% were more confident than they were one year ago. I have to wonder what planet that 15% are living on!! Only 12% of the study participants say that saving for retirement is a major priority right now. Why is this number so low. It must be related to the following number that 57% of respondents are "Struggling Just To Get By." Almost 60% want the government to get off their fannies and fully fund Social Security.

Another interesting point that they made is that more than 25% want their 401K Plans to offer them the option of providing investment choices that guarantee lifetime income. Traditional 401K Plans do not offer this option. traditional brokerages do not generally recommend this option. Employees in companies with 401 K Plans tell you employers that you want this option! Employers reading this we can help you modify your 401K Plan and move your plan to a TPA that Encourages this kind of Safer Money Alternatives. We can do it in qualified plans, SEP, SIMPLE Plans and both Traditional and ROTH 401K Plans. We also do it cost effectively.
Employees over age 40 can actually get a guaranteed rate of return of 6 or even 7.2% increase in your Income Account Value. employees under age 40 have a lower guarantee but both have the potential to make more than that 6% or 7.2% annually in good years. We also can create a lifetime income you or your employees cannot outlive. WOW! Protection of Principal, Safety, Above average rate of return, and Lifetime income when you want it. It may even be possible to get a 5% bonus on all assets switched into the program, or on new contributions made during the first year. This is applied to the employee contribution and the employer match.

How To Minimize the Damage From A 9.8% Inflation Rate

Over the last 12 months the USA inflation rate is up 9.8%. Investing at a bank with an average yield of 1-4% means that before taxes you have a net negative return of 5.8-8.8%. Your buying power has actually decreased by that 5.8-8.8%. To make it worse you are getting taxed on the rate paid by the bank at a 15-33% rate even if you leave the money in the bank account. OUCH!! To asses the damage start with your earning rate subtract the tax rate you pay, then subtract the 9.8% inflation rate. This year that number looks like it will be a negative number for almost everyone. Minimize the damage! Protect your principal! Some years just staying even is a great place to be. Its better than a 20-30% market loss! Efficient money management is even more important in a bad year than it is in a good year. The impact on most people from 2001-2002 took 5-6 years to recover.

Let's repeat it again. Protect your Principal! Balance your assets with at least some no risk financial products. We can even create a lifetime income source that is not subject to market risk.

There has to be a better way! There is a better way! As long as the inflation rate stay this high there is no safe way to beat inflation and remain risk free. You owe it to yourself to get the best rate of return you can and maintain the highest degree of safety that you can in the process.

A 7.2% guaranteed rate of increase in an Income Account value with the potential of a higher rate of return depending on economic conditions seems to be about the best combination of risk-reward ratio I have seen in the last year. Hopefully the gas prices and commodity prices will continue to ease a little bit and the inflation rate for the next 12 months will be more moderate. Perhaps we will get back to a 2-3% increase in the Consumer Price Index (CPI). At that level you can actually grow your assets but until then most people will do well just to minimize the damage to their assets.

Contact us to arrange a no fee initial consultation. We can help you protect yourself in the bad years and take advantage of the good years all with little to no risk. If this is a philosophy that appeals to you we should certainly talk. Business owners and individuals can all benefit from these strategies. We can structure safer money planning into your retirement plans.

We can not help everyone, but how can we help you?

www.columbusfinancialplanningpros.com

Small Busines Retirement Planning

Business owners and self employed professionals. Cost effective 401K ROTH or Traditional plans are available. With Safe harbor plans you can maximize your contributions with minimal employee contributions. Self employed 401 K plans start at about $400 per year in administrative fees. Fees are higher if you have non owner employees. We can also help you implement no fee SIMPLE Plans as well.
Plans are available with guaranteed no market risk. Some options offer a minimum of 3-7.2% annual growth as a worst case alternative. There is substantial upside growth potential above the floor. We would be happy to discuss your plan needs in detail. Business owners can shelter as much as $45,000 per year from personal tax liability. The exact amount you can shelter is formula driven but we can get you a detailed quote.

How can we help you?

www.columbusfinancialplanningpros.com