401k, where’s all those 65years old millionaires?

Starting your 401k

Why financial education it’s critical in today’s world?

Well, from the way I see, whatever you do as a profession in life, you will put at some way your money in “the Market” to keep your wealth or make it grow for your retirement. Because there’s different strategies you can use, for this blog I will only talk about 401k & #mutual-fund.

You want this or not…you are in Stock market business. And by getting a proper education you will know what action you should take. I’m not looking to make you a full time trader. But make you realize that you should check your financial adviser, to make sure he doesn’t screw you retirement, you Life!

401k investment

401k Investment : Example of what they sell to you

This is what they sell you.It look awesome right!? and whatever graph you look at, is always the same or almost. $10 000 to $1 000 000 in only 40 years. but let’s make some maths now….

$10 000 x 40years = $400 000 , it’s yours money. So you should be sure to retire with at least $400 000…what it’s not that bad,right? but with this investment example, there’s at lest $2 000 000 to get. So…you are sure to retire rich and happy, and enjoy your life with $2millions!

mutual fund fees per year

Mutual Fund fees per year with $10 000

This is only an example of one that have good results. I actually pick at first the most popular…but at the end, almost all of them start to show me an “average return” negative.

So, you will pay $245.50 to manage your money, and in exchange you are almost guaranties to get a negative #return. (in general it was -2%).

-2% on $400 000 you #invest, it will give you $392 000 – MF’s fees , and don’t forget, if you redraw to much of your own money, you will be taxed!

!!! Just for those who are interested…I will take only $100 in fees, and will guaranties you a yearly loss of 1% only…call me 🙂

So what it’s my point? it’s to show you the “Paradox”….of the chart that shows a continue growth in your account vs the reality of how the #economies are doing. I’m not saying they are lying to you…But understand there’s a big difference between a “nice set up on paper and numbers” vs reality of how it is. …looking at those people plan strategies, everyone will and are millionaire after 65, I am wrong?

Look at following data

Social Medicar,Social Securities, Personal Debt,Unemployed,Living in poverty,food stamp……it’s me , or I don’t see the American Dream? …..unless if you are a Banker…

where you put your money

Where you put your money?

Great example of what it’s happening now. I won’t go back in history and tell you why it start to decline, if you are so interesting about retire rich, I will let you do the research….As you can see…it doesn’t, go better at all. And 60% of population are in the stock market.(ps: your pension plan are in stock market also….)

There’s something people tell me, you make a loss only if you sell it. So if you hold it for ever, you will never make a loss. Sounds smart? well…why are you buying stocks then?….would be better to just put your cash under your bed…no?

And if you bought at 2000,100shares of ZYX company at 10$. And sell it right now, you will make only 20% profits, after what? 14years?. it give you what less than 1.6% a year in profits? devolution of dollar and inflation, you are in a loss….and big one! this it’s the sad reality… I recommend to all, go to see your banker, ask for financial statement since you invest. And see how much you put of yours own money, and what is left…

Income

Income…and how it growth over the years

I always hear…economies growth at 3% a year and your salary too….in real life I don’t see this at all…there’s always a good logical reason to freeze salary cause of yearly “UN-expected situation”.

And with this chart…I’m still asking my self…where they take the 3% growth in your salary…?  let me check on my past year paycheck…..nop….no change!

Reality….salary don’t increase, taxes increase, price also, hiding GV fees also. So where’s all those retirement millionaire? oh! yes…in stores, welcoming people to spend money!

If you look at the chart of unemployment, every 6years about, when the unemployment rate go down, it never go lower that last crises……and they say everything go well….sad….

your retirement account

your retirement account….that how it will look like if no proper decision are taken by you…don’t believe me? go to the store and ask why a 65years man working?

if you end by looking at this picture, it may because for you, your life, you family, kids , wife or husband are important in your life. And you would like to retire by being happy after giving loyal 40years of service to the world by doing your profession………….

…………….and in exchange you have all right to retire Rich!