Are you on the "40,40,40 Plan"?

Here are some of the results of the 40,40,40 Plan or the result of its mentality at least.


The "Baby Boomer" generation are those 45 and 62 years of age (as of 2008). This generation has saved on the average retirement savings of $38,000, excluding pensions, homes, and social security. However, "Baby Boomers" with qualified retirement plans has an average retirement savings of $88,000. The $88,000 of average retirement savings will generate an annual retirement income of about $5,000 yearly. Not many people would be satisfied with this level of retirement income. To get an exact amount, based on your age and retirement savings, you can use the retirement income calculator. But there is ample evidence that these retirement plan accounts are mismanaged with approximately half invested in under-earning money market funds rather than long term growth investments. It's clear not many baby boomers will retire rich.


 
This is just a small portion of the data and as you may guess it doesn't get much prettier. Here is the scary part. They really don't talk about the amount of debt the "Baby Boomers" are actually carrying into retirement. Imagine what those figures look like. So let's say you're a "Baby Boomer" and you are on the higher of the averages at $88k. If you have a mortgage or any other debt (auto loan, credit cards) how is it that you will possibly retire?
Here is the answer millions won't!!! Look around you and you will see the signs everyday. How many times has someone greeted you at Wal-Mart in their retirement years or the person who delivered your pizza (being in their 60s) was not your typical delivery person. If you were to ask them ;was this part of their plan 20 or 30 years ago? I promise you they will have an answer of NO!

(Now keep in mind these are the "Baby Boomers" we are talking about. We will dive into the even scarier "Generation X" soon. Trust me when I tell you, it is not getting any better with them.) ~~~ I should know I am one of em. :) ~~~
There is good news though. There is a way to make a difference in your personal finances, if you are willing to make some changes and be open to taking control of our own destiny. (Oh yeah and it will take some work of course)


One way is to start your own business. Remember about 5% of the people control 95% of the money! Who are these 5%? Big business owners. How do you get to own a big business when the average cost is about 25 million to start one?


The #1 way is to start with a home based Network Marketing Business. If you follow Donald Trump and Robert Kiyosaki they are big fans of this because the threshold for entry (your investment) is so low and with some consistent effort over time (usually around 2-5 years) the income can be nothing short of extraordinary! Even if you are just looking to supplement your retirement income or pay off some debt, you can custom tailor your business for your own needs.

Not to mention the tax benefits of owning your own business. (These are some of the things most of us were never taught in school of course.) Remember taxes (for most people) are the third largest expense you will have and in retirement most people have very few write-offs.
Well, enjoy chewing on some of these thoughts. I will have some more information soon with upcoming posts. In the mean time if you would like some ideas on what business might be right for you or how to find the right business feel free to contact me.