Do you have enough for retirement?

This is the BIG question many people over age 55 ask their advisors.

Most people over age 55 have no idea if they will have enough saved to be able to quit working and live on the income from their nest egg. They may live another 35 years. Most advisors don’t know the answer either.

There is a simple answer: $5.55 a day.

This is the amount necessary for you to have an additional Wealth Reserve of $150,000 in 20 years. BOTH of you can make the $166.67 monthly contribution and have $300,000. It would take doubling that again—$666.67 a month—to reach $300,000 in less time—15 years. Time is the key factor in compounding your money.

EVERYONE needs more money in retirement because of increasing expenses. Most people need their Social Security income too. That income is now in doubt. Our Treasury Department contends that changes are inevitable, because the program seems likely to become insolvent in 2041. Most policymakers seem to agree that, if benefits must be cut, the cuts should affect higher-income workers and retirees before they affect lower-income workers and retirees. Treasury wrote a new “progressive benefits reduction” analysis. treasury.gov/press/releases/reports/ssissuebriefno.%205%20no%20cover.pdf

Everyone can invest $5.55 per day—that’s a cigarette/coffee or a 15 mile trip. Some people can afford to double that. If you can add more, fine. Unless your joint income exceeds $169,000 in 2008, put the money in a Roth IRA. The earnings—$150,000 less $40,000 deposit—are not taxed. There is no income tax, ever. That adds 25% more to your balance. Unlike pensions, regular IRAs, insurance, annuities and savings, there is NO tax or fee. You get to use all your money! irs.gov/publications/p590/index.html


Do you have enough for retirement? NEVER

Ask anyone who is in retirement today. Bread, milk and eggs went up 20% so far. Health care and long-term care expenses are rising. How long will the young people want to pay for our Social Security if it will end before they use it?

Set up an account for you and your spouse in 30 minutes using our members’ strategies: http://www.theinsidersguides.com/freeguide.html