It may not exactly be the fault of the individual, but many Americans today struggle to save up for their retirement. Whether it’s low working wages or high prices in the economy, it’s hard for a lot of people to set aside money for the future when they’re trying to live day to day. This is why systems like Social Security, Medicaid, and Medicare are so important to Americans today. There are some misconceptions about saving for retirement that you should be aware of when you do start to save for retirement.
Buy more bonds as you get older. Where you put your assets are very important decisions. This is important for actually generating and preserving your wealth. One of the rules that people used to follow is to subtract your age from 100 to determine how much stock and bond investment you should have. However, it’s not that easy to determine anymore. It really depends on your risk tolerance, risk capacity and most importantly your goals.
You’re okay if your advisor is a fiduciary. A new rule from the Department of Labor says that more retirement advisors will have to legally act as a fiduciary. A lot of advisors are not held to a fiduciary standard now and this new rule can help regulate that. This means that advisors will now be legally required to keep the client’s best interest in mind, minimize conflicts of interest, and charge a reasonable fee. Sounds like something that should have been put in place years, if not decades ago.
If you did not save enough for retirement, chances are you are not alone. Studies have shown that Americans are not saving enough for retirement. However, if you are living on a smaller budget, there are many places that have a lower cost of living that are perfect for retirees. It is possible to retire on less than $75 per day.
Akron, Ohio. Akron is a great place to retire to if you still want to go out and do fun things. Many places in Akron offer discounts to seniors such as, Akron Art Museum, Akron Symphony Orchestra and the Akron General Medical Center, Summa Akron City and St. Thomas Hospitals. In addition seniors, on average, pay $1,087 a month for a mortgage, and $646 a month on rent.
Augusta, Georgia. If you’re a fan of golf, you’ll love the many golf courses that are in Augusta. However, the cost of housing here is what makes people stay. The average cost for seniors with a mortgage is $1,057 and $616 in rent.
Chattanooga, Tennessee. If you want to be on the water and be surrounded by mountains, Chattanooga, Tennessee is a great place to consider. The Tennessee River runs right through the city creating beautiful scenery. Seniors tend to pay around $1,023 per month with a mortgage and $644 for rent in Chattanooga.
Greenville, South Carolina. In addition to the many, many free things to do in Greenville, the housing cost for seniors is around $1,027 with a mortgage and $673 for rent.
Of course it’s not easy to have a worry-free retirement when you’re retirement nest-egg is still invested on the risky stock market. On-going fees and commissions along with the risk and corruption that exists within the financial industry could cost you a great deal of your retirement savings…money you can’t make up if you’re already in retirement and not working. Get educated on the exclusive Crash Proof Retirement System- guaranteed to protect your principle so when the market crashes, your accounts stay even, but can also be designed to generate income and take advantage of market increases. Start your education today by calling 1-800-722-9728 or go to Crashproofretirement.com and register to attend a no-cost/no-obligation educational event with the creator of the proprietary Crash Proof Retirement System: Phil Cannella.
Collecting Social Security and the rules for doing so can be quite complicated, especially since they change often. Unfortunately there will be no increase in benefits in 2016, thanks government, due to not measuring inflation in 2015 to trigger a cost-of-living adjustment and Social Security is running out of funds.
While the future for Social Security is questionable, there are a few tricks and strategies for maximizing your Social Security benefits.
Work for a long time. Obviously this is one of the best ways is to work for a long time. If you put in a full career, at least 35 years, you should be able to maximize your Social Security. If you retire at the “normal” retirement age, (65-66 years-old), you could rack up 35 years at a career even if you didn’t start working on your career until your thirties.
Don’t retire early. If you take advantage of being eligible to take Social Security benefits at age 62, this will in turn minimize your Social Security funds. If you take out your money at 62, the money you will receive will by discounted by 25%, also.
Stay healthy, if at all possible. If you can take care of yourself such as eating right, getting enough exercise, going to the doctors regularly, you can stick around longer in your career to collect your benefits. This will help you continue to collect monthly benefits for the rest of your long, healthy life.
For more information on how to plan for retirement and to Crash Proof your retirement nest-egg, visit: crashproofretirement.com or watch the video below and see how Phil Cannella created the exclusive Crash Proof Retirement System.
Phil Cannella has spent much of the past 39 years gaining experience in the Insurance industry and watching many large companies go into bankruptcy. But it wasn’t until the unregulated activity during the 2008 financial crises that Phil realized the hidden upside in declaring bankruptcy for companies and also the disaster it created for investors. Corporate bankruptcies have ruined the savings, nest-eggs and lives of millions of hard working Americans. This realization took Phil Cannella by surprise. He was appalled to see corporations on Wall Street adopting the philosophy of declaring bankruptcy as a type of strategy; one that leaves the everyday investor out to dry.
“You realize, that when a corporation goes into bankruptcy…that’s their payday, because they get to keep your money. Contrary to popular belief the people affected most by declarations of bankruptcy aren’t necessarily the CEO or other executive officers of these major corporations. Generally, it’s the preferred stockholders and bondholders; the ones who never see any return on their investment. People who invested in General Motors learned this lesson the hard way after the financial fiasco.” –Phil Cannella
After the financial meltdown of 2007-2008, Phil Cannella wanted to better understand why General Motors was eligible to declare bankruptcy and subsequently fleece bondholders out of billions of hard earned dollars. Ultimately this allowed General Motors to avoid most of the pain when they received government bailouts to the tune of $40 billion dollars.
“One year later, we the people bailed out General Motors with our tax dollars,” explained Phil Cannella. “And just two years after declaring bankruptcy—are you aware that General Motors profited $11 billion—but paid back none of their bondholders or preferred stockholders? Who are bonds safe for?…the company who issues them.”
The numbers back him up. In the end, the GM bailout cost the American taxpayer $12 billion. But you won’t hear that from your broker.
These Bonds weren’t safe for the people who lost money in the GM bankruptcy. They did not perform much better for the thousands who hold municipal bonds who’ve watched as various American cities go into bankruptcy, leaving them with worthless pieces of paper. This is one of the many reasons why Phil Cannella works tirelessly to dispel the myths of ‘diversification’ in the form of a mixture of stocks and bonds. As he explains, Stocks and bonds both fall under the risk category of investments. Bonds won’t protect you from a market downturn, nor will they provide you with a tax-free source of income.
“Remember, bonds are graded based on the credit of their issuers. So if you see a bond with a high yield, that’s often accompanied by a high risk of default. “
Phil Cannella knows that the Statement of Additional Information is Wall Street’s dirty little secret. But he admits that Wall Street’s done a great job of keeping that secret—so great, in fact, that most financial advisors don’t even know the Statement of Additional Information exists!
“We’ve all heard about the Book of Prospectus—because we all read it cover to cover!” Phil Cannella joked at a recent Crash Proof Retirement educational event. In that book, you can find out about the hidden fees your advisor never showed you.”
– Phil Cannella
But it’s another book—that little-known Statement of Additional Information—that tells the rest of the story. Phil Cannella and Retirement Media Inc. have done research indicating that almost 50% of fees in mutual funds won’t be found in the Book of Prospectus. Rather, you’ll need to ask your advisor for the Statement of Additional Information. Only there, wrapped in anywhere from 50 to 150 pages of complex legal jargon, will you find the rest of your fees—charges that take, on average, 1.44% of your funds annually.
Fortunately, Phil Cannella has made it his mission to uncover and expose the truth behind these ‘tricks of the trade’ that slowly drain your accounts. He accomplishes this by spending time at each educational event explaining the exclusive Crash Proof Retirement System & disclosing the existence of these statements, and then teaching attendees where they can find the one that pertains to their mutual fund. Phil Cannella continues to work hard to reveal truths like the Statement of Additional Information to Americans in or near retirement. And it’s a good thing he does—because we can’t depend on Wall Street.