Mistake number 8 out of 10 in saving for retirement.
In this episode, I'm addressing the question.
What mistakes do people make when saving for retirement?
There's lots of mistakes.
It would probably surprise you because most people don't think about this until it's too
late.
So, my name is Doug Andrew and I've helped empower people for more than 47 to prepare
for a comfortable retirement.
So that they do not outlive their money to avoid a lot of mistakes that a lot of Americans
make following their herd.
Putting their money to the traditional IRAs and 401k invest in the market.
That is not the best way to go.
So, this particular mistake number 8 out of 10 that I would encourage you to watch all
of the episodes all 10 mistakes here.
But a lot of times people are surprised when I bring this one up but it definitely in the
top 10 and the mistake is underestimating your life expectancy.
How long you are going to live after you retire?
And people go, "Really?
That's a mistake people make?".
Yup.
I've seen it for years where people all of a sudden they don't realize that their life
expectancy is longer and they run out of cost, health care cost, and so forth.
Because they are living longer than they anticipated.
So, let me show you how to make sure how long you live even if you live up to 120, you will
never outlive your money.
So, to give you a little background on this very channel.
I often talk about the history behind a program's benefits of the government like social security
and so when social security was first introduced to be able to force people to save and have
the government provide for retirement benefits or what have you.
It started during the industrial revolution, people will go to work at factories and so
forth, and pretty soon owners of assembly lines, the factories, would retire worn-out
equipment.
Okay, the word retirement is put out of use.
So, they would put out of use, worn-out equipment, and then they got the idea, "Well, let's retire
worn-out people."
Now, people may not have been worn out but they said, "Let's retire people and put them
out of use."
Now, I never like the word retire because I don't want to be put out of use to you.
So, there's a secret in increasing your life expectancy that I'll give you here in just
a few minutes.
But that's why social security is introduced because when people were put out of use, they
stop making themselves necessary.
Do you know the average life expectancy was only 7 years for an average American?
It was only 5 years life expectancy for a government retiree, for a military retiree.
When they're put out of use they're like, "That was my whole life", they're life expectancy
was only 4 years.
So, the whole social security system was designed to never have to pay out benefits for more
than about 7 years and they were done.
Well, what has happened is people are living longer and their running out of health care
costs were extending the life and they really never planned on that and that is really the
truth behind why social security is in trouble and frankly if you're back in 2009 the federal
government begin to pay out more social security benefits than they would be held from people
paychecks and frankly, they owe over 130 trillion dollars in the future social security medicare
benefits to the people they have withheld from their paychecks and if they stop withholding
from new workers paychecks.
They would be out of money within 9 months and you know the upcoming workforce is smaller
than the retiring baby boomers workforce.
So things aren't looking good and so that's why the government had encouraged people,
"Well why don't you s*** away money, we will give you tax incentive to put money to traditional
IRAs and 401ks.
But it's actually a savings fund for the government.
Well give you a tax break on the seed money but later on during the harvest years when
you planted your crops and work hard on your life.
Now you go and harvest your money out of those IRAs and 401ks that were gonna tax you."
Yup, people are getting taxed to death and that's one of the big mistakes that I address
in this series.
Well, it's also because people are living longer and they're running up those cost.
The cost of prescriptions and living especially when inflation doubles the cost of living
every 7-10 years on the actual comparison apples to apples of goods and services.
So folks, when we live longer than we anticipated a lot of times people think, "Well, I will
die in my 70's", well, why do you think that?
"Well, because my mother passed away at age 76 or my dad did", whatever.
Do you know, that with the baby boomer couple one of you will likely live at the age of
96.
So, that's probably 30 years after a lot of people retire.
Now folks, the cost of living can possibly double twice or even 3 or 4 times in that
30 years period.
It means if you could retire on 50,000 a year you may need 100,000 then 200 then 400,000
in a year by the 25th year to buy the same gallons of gas and loaves of bread that you
use to buy for 50,000.
Because people are living longer and taxes and inflation keep your road in a way that
causes people o take out more money.
So, you need to have at least a sufficient retirement nest egg that's mistake number
7.
But this is number 8, you need to realize your true life expectancy.
Now, if this is resonating with you and you can think of somebody who has the same thought
pattern be sure to share this video.
Click like and post a comment, subscribe to this three dimensional wealth channel.
Because I post an in-depth answer to financial questions almost on a daily basis.
I have over 500 educational videos on this channel to empower you.
But stay with me to the end because I wanna gift you a copy of my recent best-selling
book The Lase Fund.
This is how to diversify and create the foundation for a tax-free retirement.
You will see examples here.
That if you have a million-dollar nest egg you can generate not 40,000 a year of income
that is subject to tax like most people do with IRAs and 401ks but double that.
80,000 a year of tax-free income if you live to be 120 and if inflation raised the cost
of living.
You can come along for a ride and have inflation.
But the real secret to living longer is making sure that you understand that you need a strategy
it will last as long as you do.
So, you don't outlive your money.
So that if you live 20 years, 25, 30 years.
My sweet mother-in-law is 92, one of my favorite clients turned 98 before she finally passed
away, and because she followed the advice that's in the book the lase fund they never
outlive their money.
So many people are out of money in their 70's because they miscalculated their life expectancy
and their nest eggs were not set up correctly to make sure that no matter how long they
live they never run out of money.
Because when you are out of money out of IRA and 401k to traditional accounts you're gonna
be relying on social security, welfare, charity, or your children for support and most people
I know don't want to be a burden on the government or their children and you cant rely on the
government to always give you everything you need.
To maintain a good and dignified lifestyle.
So, the fastest-growing segment of American society today are those people reaching over
the age of 100.
Yup, but as you live longer of times a lot of your money is used to maintain your health
and so prescription drug healthcare those costs go through the roof.
You need to have a strategy that will last as long as you do.
So, make sure that you have your money and to a portfolio where it's safely earning predictable
rates of returns not a 4% or 5%, more like 8 or 9 percent.
So that every million can generate 80% and even 100% a year of tax-free income and inflation
goes up, you'll come along for a ride.
So that if you live 96, 100 to even 120.
Most people when I asked them, "Are you more concerned about being rich or would you prefer
to make sure you never run out of money you'll never be poor?", and almost everybody says,
"I wanna make sure I'm never poor.
That I'm never dependent on somebody else", so don't underestimate your life expectancy.
If you wanna learn how to diversify and create the foundation for a tax-free retirement that
will allow you to have the resources the funds that last as long as you do.
Go to laserfund.com click on the link below contribute a nominal amount towards the shipping
and handling and I'll cover the rest of your cost and I'll fire out the copy for you.
There's an option for your to listen and learn and watch and learn.
This is about your brighter future I want you to avoid all 10 mistakes in this series.
So, watch all of the episodes of the 10 mistakes and either avoid them or correct them before
it's too late and this is the solution for every one of those 10 mistakes.
Here's to your brighter future.