Discover why 95% of Retirement Plans FAIL


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This is a Sample of a Research Report valued at over $80,000 containing millions of dollars worth of research data that shows why approx 95% of retirement plans FAIL.

The full version is also available at no cost.

Anyone who wants to retire MUST see this valuable information.

You will learn how much is needed to retire, see historic investment returns, why most plans are losing 44% they don't know about, how inflation devastates most plans, where 90% of millionaires made their money and most importantly discover a safe and affordable alternative

Enjoy and more importantly plan wisely for your future!

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Discover why 95% of Retirement Plans FAIL

  1. 1. ARE RETIREMENT PLANS A WASTE OF MONEY? Discover the 5 most dangerous retirement plan myths that will cause your retirement plan to FAIL
  2. 2. 95% OF RETIREMENT PLANS ARE FAILING Of the 77 million individuals planning to retire in the next 10 to 15 years, 95 percent are hurtling toward failure Only 5 percent will enjoy the luxuries of a successful retirement After a lifetime of hard work, 95 percent of Americans will retire broke because they believed in retirement plans that have been failing Americans for many years Source: Ezinearticles 95% of Retirees Retire Into Poverty! Author: Bill Young former bank mortgage officer and licensed financial consultant Hot Spot Investments - Copyright 2009 2
  3. 3. PUTTING INFLATION INTO PERSPECTIVE Prices in 1957 Today’s Prices Tuition at Harvard $800 $31,665 A gallon of gas $.23 $2.24 A pound of coffee $.69 $3.14 A gallon of milk $.97 $3.20 A dozen eggs $.45 $1.26 A pound of sugar $.11 $.51 Hot Spot Investments - Copyright 2009 3
  4. 4. COSTS CONTINUE TO SOAR $450,000 Health Care Costs $395,000 Health-care costs are $400,000 climbing, a 65-year old $350,000 couple now needs $300,000 $225,000 to cover health- care costs vs. nearly $250,000 $225,000 $400,000 in 2018 if costs $200,000 continue to rise at 5.8% $150,000 per year $100,000 $50,000 $0 2008 2018 Source:, BusinessWeek July 2008, author Tara Kalwarski Hot Spot Investments - Copyright 2009 4
  5. 5. FEES HAVE SKYROCKETED An investor with $200,000 in retirement funds averaging the S&P500 Index over the past 7 ½ years has seen an average return of just 2.07% while experiencing a 44.73% draw down aka loss…meaning the $200,000 was dropping instead of climbing! Draw downs are typically defined as broker fees, penalties and taxes Who is really profiting with your hard earned money? Source: Diversify your IRA, 401K, Trust or other Tax Deferred Plan, Attain 7/16/07 Hot Spot Investments - Copyright 2009 5
  6. 6. SOCIAL SECURITY - BUSTED Social security pays out an average of $503 per month Living on social security would be comparable to living in jail The only thing you can afford is 3 meals a day Source: Social Security Administration 2009 Hot Spot Investments - Copyright 2009 6
  7. 7. BANKRUPTCIES ARE DEVASTATING RETIREES Americans 55 and older had the sharpest increase in bankruptcies in 2008 more than any other age group They accounted for a full 1/4 of all filings in 2008 Already nearly 2/3 of Americans are financially forced to go back to work during retirement The next generation will be dealing with social insecurity problems Source: Those golden years have lost their glow, Los Angeles Times, September 2008 Hot Spot Investments - Copyright 2009 7
  8. 8. STOCK MARKET INVESTMENTS - BUSTED There have been 9 bear markets in the last 50 years 2007-2009 56% • On average every 5.5 years • 3 dropped more than 40% 2001-2002 52% • From an all-time high in October 2007, the market 1987-1988 33% dropped more than 56% Some say the stock market is more 1969-1970 33% volatile than any other time in the history of our nation SOURCE: BTN RESEARCH, “ BEHIND THE NUMBERS,” MARCH 9 2009, NYTIMES, S. STOLBERG, FEB 18 2009 Hot Spot Investments - Copyright 2009 8
  9. 9. IS THE STRESS WORTH IT? • Making or losing money has a dramatic physical effect on the body and brain • When individuals are making money in investments their brain activity is indistinguishable from a cocaine high • When stocks go up twice in a row, their brain automatically expects it to continue • When stocks goes down unexpectedly, panic sets in • Financial losses are processed in the same areas of the brain that respond to mortal danger Source: ZWEIG, J. YOUR MONEY AND YOUR BRAIN, SIMON & SCHUSTER, 2007 Hot Spot Investments - Copyright 2009 9
  10. 10. EVEN IN THE BEST OF TIMES THE STOCK MARKET FAILS TO PRODUCE ENOUGH FOR RETIREMENT Even if the stock market rebounds over the next 30 years, Americans will be struggling to recover their devastating losses instead of growing their investments And what evidence exists that there will not be future bear markets? Hot Spot Investments - Copyright 2009 10
  11. 11. EVEN IN THE BEST OF TIMES, TRADITIONAL REAL ESTATE FAILS TO PRODUCE ENOUGH FOR RETIREMENT Short Sales & Foreclosures are likely to establish the new reduced “Fair market value” Many Americans will fall short of their retirement dreams as they purchase “Fair Market Values” hoping to hold, flip or rent and get rich “overnight” or “when the housing market bounces back” After large down payments, vacancies, evictions, low average growth rate of 5-6%, traditional real estate is a part time job typically with less profit Hot Spot Investments - Copyright 2009 11
  12. 12. SMALL SACRIFICES CAN HELP CREATE A SUCCESSFUL RETIREMENT For example, “Consumer Reports” featured an article entitled “Cut your spending by $500 per month” A couple easily implemented six of the recommended ways and came up with a $500 savings… • Found cheaper auto insurance – saved $65/month • Optimized life insurance – saved $110/month • Cut back on telecommunication features – saved $35/month • Stopped paying bank fees – saved $25/month • Paid down credit cards – saved $65/month • Shopped wisely for food – saved $200/month Don’t forget the $150 savings per month in Starbucks, McDonalds, Hollywood Video, etc. Source: Blog, My code is compiling July 20, 2008 Hot Spot Investments - Copyright 2009 12
  13. 13. There are investment strategies for individuals who… • want a secure retirement • are financially conservative • understand that “get rich quick” generally doesn’t exist • are able to look at the long- term picture • want safe but productive investments • analyze risks and make sound choices • understand if they do nothing, they will have nothing
  14. 14. RETIREMENT REALITY 101…. Remember, the average retired American currently needs $500,000 - $1M With the average rate of inflation (5.1% per year over the past 40 years), in the next 30 years $2,301,614 – $4,603,228 will be required for a successful retirement This will not be considered extravagant living Source: Calculations provided by HML Funding ,LLC, May 2009 Hot Spot Investments - Copyright 2009 14
  15. 15. REALITY #1 – 401(K) ANALYSIS An investor with a 401(k) holding the S&P 500 Index over the past 7 1/2 years has seen an average return of 2.07% If you invested $140 a month into a 401(k) with the company matching your contribution, at the end of 30 years your total value of investment would only amount to only $139,560 Source: Diversify your IRA, 401K, Trust or other Tax Deferred Plan, Attain 7/16/07 Source: Calculations provided by HML Funding ,LLC, May 2009 Hot Spot Investments - Copyright 2009 15
  16. 16. SO WHY NOT STOCKPILE GOLD? According to Global Financial Data, dating back to 1933 gold has generated an average annual return of 4.7% If you invested $400 a month into gold, at the end of 30 years your total value of investment would amount to only $315,032 Source: Gold glitters, but it's a bust as an investment, USA Today, 9/5/07 Source: Calculations provided by HML Funding ,LLC, May 2009 Hot Spot Investments - Copyright 2009 16
  17. 17. TRADITIONAL INVESTMENTS LACK LEVERAGE LEVERAGE Without leverage, the average budget and the average amount contributed toward retirement has no chance to create enough wealth for retirement Leverage can recover portfolio losses in new value, instantly double your portfolio and make you cash liquid. Creating wealth by using other people’s money and resources is one of the oldest and wisest traditions Hot Spot Investments - Copyright 2009 17
  18. 18. UNDERSTANDING LEVERAGED RETURNS 7000 6000 5000 4000 Annual Investment of 3000 $5,000 2000 1000 Dollar for Dollar Annual Growth Return 0 Non-Leveraged Leveraged Investment: Investment: Stocks, $60,000 Value Gold, etc. $5,000 Value Hot Spot Investments - Copyright 2009 18
  19. 19. LEVERAGED VS NON-LEVERAGED PORTFOLIO 100000 90000 80000 70000 60000 50000 40000 Portfolio Value 30000 20000 Cash Reserves 10000 (approx) 0 Non-leveraged position Leveraged position: in Stocks, Gold, etc: $30,000+- cash reserves No cash reserves. / triple the portfolio value+- (inc. cash) Hot Spot Investments - Copyright 2009 19
  20. 20. THE BOTTOM LINE WITH LEVERAGE $1,200,000 $1,000,000 $800,000 Growth After 30 years, $600,000 using historic annual growth averages and a $400/mo contribution $400,000 ($140/mo for 401K). $200,000 $0 Leveraged Stocks Gold 401K Position Hot Spot Investments - Copyright 2009 20
  21. 21. LET’S RECAP… 1. Not enough money is being contributed to successfully retire 2. 95% of all retirement plans fail because they lack leverage and adequate returns 3. Inflation affects the future value of retirement savings 4. Traditional real estate and other investments produce insufficient returns and require large amounts of time and money and induce stress 5. However, individuals have the ability to prioritize and can retire successfully on a small budget Hot Spot Investments - Copyright 2009 21
  22. 22. A SMALL BUDGET CAN CREATE A LIFETIME OF SECURITY We are the investment safe haven, we can help you… • Eliminate the risk of losing your investment! • Add hundreds of thousands+- to your retirement • Instantly double your portfolio and convert investments to cash reserves using leverage! • Earn 120%+- dollar for dollar average annual growth return using leverage • Grow nearly 2 times faster and create far more cash flow then traditional real! • Gain 30%+- annually by growing TAX FREE • Grow a portfolio at an average of 10%+- annually • Gain up to 44% by eliminating drawdown • Discover a new 10% Match Program
  24. 24. PROCRASTINATION CAN BE YOUR WORST ENEMY According to a Yale University study, people forget 90% of the new information they learn in only 7 days: -40% in 20 minutes -30% in 24 hours -20% in 7 days Today is the time to plan for tomorrow, while you realize you are at risk of retiring broke or in poverty, before it’s too late, before the opportunity is lost... 24