How to build real financial and retirement security

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Conventional retirement planning has failed to provide financial security and peace of mind for most people, says Pamela. Even after experiencing the longest bull market and economic expansion in history, the average 65-year-old man outlive their savings of nearly a decade, according to the World Economic Forum. The typical household approaching retirement only has about $ 135,000 in their combined retirement accounts – enough to provide them at most $ 600 per month, according to an analysis of the Federal Reserve’s Survey of Consumer Finances.

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Problems with conventional retirement savings plans such as 401 (k) and IRAs include:

  • They are sensitive to stock market crashes which can wipe out 30-50% or more of your savings
  • Fees on these plans devour up to 40% or more of your savings
  • You can’t know what your accounts will be worth when you need to operate them
  • You have no idea what tax rates are on your retirement savings withdrawals – and it’ll likely cost you a bundle.

“With the biggest government stimulus packages in history stacked on an already skyrocketing national debt, it’s clear that tax rates can only go up in the long run,” Pamela said. “Even at current rates, you will lose 25 to 33% of your tax savings” (according to the Center for Retirement Research).

To build retirement security despite these trends, Pamela recommends the “Bank On Yourself Safe Wealth Building Method” which has grown in value every year for over 160 years. An alternative to savings and savings accounts, it offers security and liquidity but generates a much higher return than savings and money market accounts and CDs. Growth is guaranteed and predictable and can provide retirement income that is tax free under current tax laws.

Advice on financial planning and retirement security

Here are some tips for financial planning and retirement security from Pamela:

  1. Define spending rules

Like waiting seven days to buy an item over a certain amount that isn’t absolutely essential. You will be surprised how often your urge to buy something will be repressed if you simply wait a while to determine if the item is really a need or a desire. The key to living a richer lifestyle without blowing your budget is to spend consciously.

  1. Set aside more money for emergencies

Conventional wisdom about the size of your emergency savings fund is seriously flawed, says Pamela. Almost all experts give the same advice: have a rainy day fund equal to 3 to 6 months of your household expenses. But the latest recession and the latest financial crisis left tens of millions of people unemployed for a year or even two. That’s why you need to have safe and liquid savings equal to two years of your spending. Start where you can and increase your savings by 1% or 2% whenever possible, and you won’t feel the effects.

  1. Store your emergency fund in safe and liquid assets

Consider a neglected financial vehicle (the Bank On Yourself Method) that has stood the test of time and has historically significantly beaten the growth of savings accounts and the money market. It gives you penalty-free access to your money when you want it and for what you want, with no restrictions and no questions asked.


“It can also serve as an alternative to a retirement plan that gives you guaranteed and predictable growth each year, tax-free withdrawals under current tax legislation and lets you know the guaranteed minimum value of your savings- retirement on the day you plan to use it. and anytime along the way, ”says Pamela.

About the Author:

Pamela Yellen is the founder of Bank On Yourself, a financial investigator and the author of two New York Times bestselling books. Readers can get a free copy of his latest book, “Rescue Your Retirement: Five Wealth-Killing Traps of 401 (k) s, IRAs and Roth Plans – and How to Avoid Them” here for a limited time. Pamela has studied over 450 financial strategies looking for an alternative to the risk and volatility of stocks and other investments, which has led her to a proven and predictable method of growing wealth now used by millions of people. ‘Americans. Visit


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