Updated: Oct 15, 2020
A couple months ago, there was this article:
Then today, there is this article:
Do you know who CAN'T save that much? Middle Income American families.
They live in a completely different world than those who CAN save this much. These families are more concerned about having money, paying their bills today, and having a decent retirement, not necessarily doing a ton of travel, etc. in their retirement years. In fact, they're seeing their retirement dreams SHRINK because of the overall economy, and demographics. (That's why we've seen the ideal retirement distribution go from as high as 6% to now as low as 2.8% according to Morningstar.)
But let me expose the secret behind these articles that the writers don't want you to know:
If you learn how to have a tax-efficient retirement... you don't need NEARLY as much money for the same lifestyle!!!
Do you know who DOESN'T want you to know that?
Banks: Because you won't use them for lending anymore.
Financial Institutions: Because you won't take their advice anymore.
Wall Street: Because you won't need to invest, risk YOUR capital, and pay their ongoing fees.
Congress: Because they keep spending, assuming that you'll pay far more in taxes in the future to pay for their spending today. (It's not REALLY the IRS. They're just the collection agency for the United States Government, but it's easier to hate the agency.)
I could help you spend $500,000 as though it was $1 million?
I could help you spend $1 million as though it was $3 million?
I could help you spend $3 million as though it was $5 million?
We move your capital from forever-taxable to never taxable using the tax code!
We do so in a way so that the resulting cash flow is actually off the radar of the IRS and you legally wouldn't have to even FILE a tax return according to the tax code!
And you can remove the risks of being invested in Wall Street... unless you choose to time the economy to make other investments! (Timing the economy is a completely different strategy than trying to "time the market".)
And you save on all those investment management fees being charged against your portfolio required to take on the risks in the first place!
It IS possible... but it's not for everyone.
But wouldn't a far more efficient strategy make more sense than trying to chase an ever-increasing "ideal retirement target"?