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ST. GEORGE –Current economic research confirms what many workers have long suspected: America’s middle class is disappearing at an astonishing rate.
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Several polls and research studies show that Americans, especially middle-class Americans, feel less wealthy today than they did in the past 50 years. Such results represent the worst assessments of personal progress in the last half century. Of course, the pandemic only made matters worse.
An alarming number of people say they feel they have not made any progress in their financial life. Many feel moved backwards and their status as “middle class” is questionable.
An economic downturn sparked by the pandemic, upheaval in the stock markets, unemployment and a lack of confidence in government solutions has added to the high number of people who say they cannot get ahead. Retirement provision is out of the question.
The median household income has been falling since 1999. Taxes have risen and the dollar’s purchasing power is decreasing day by day. Given the financial upheaval right now, it’s no wonder that most people can’t begin to think about the future.
The future will come, however, whether we prepare for it or not. If you want to be in a better financial position, you need to consider how you can create multiple streams of income now and in retirement.
A sucker for your fortune
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Most people aren’t told the full story about money and how to make every dollar work harder for them. The financial media have made it clear to them that they have no choice but to put their money at risk, even if they are retired.
Many Americans are conditioned to believe that the only way to fund large purchases like homes, cars, or office equipment is to crawl up to a lender for a loan. Debt was easily accessible, and nearly half of all retirees continue to pay mortgages and credit card debt long after they leave their jobs.
It is evident that the old rules of how best to save for retirement no longer make sense, and that losing even $ 1 in retirement is unacceptable. It is more important than ever to rebalance your own portfolio. Depending on your age, your risk tolerance and your current situation, you may want to invest more of your assets in “safe money” products like life insurance and annuities.
You have the choice.
If you are serious about not running out of money in retirement, or if you are downgrading your lifestyle, you need to actively engage with your money. It’s not just about accumulation; It’s also about distribution. How long does your money last
You need to do the following:
- Find a trusted, honest finance leader who is experienced in the finance distribution phase.
- Work with your advisor to review and rebalance your portfolio as needed.
- Research safe money products, especially pensions, which offer contractually guaranteed basic security, have tax advantages and enable steady growth.
- Plan for health and long-term care needs.
- Create and follow a blueprint for retirement and income.
Taking a realistic approach to money and retirement, as well as certain products, will help you make the most of the time you no longer want or can not work.
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Then there’s the monster in the corner: inflation. Inflation should be considered in order to carefully and strategically invest and mitigate inflation, especially as the retirement period continues.
You may have heard of the “investment horizon,” the time it takes to begin the spreading phase of your asset base. But with many people living well into their 80s or even 90s, that time horizon has become your life expectancy. Chances are you’ll find that your retirement is as long or longer than your career.
For this reason, I believe that many, if not most, retirees need some alternative investment allocation to stay ahead of inflation. Otherwise, they could have much less purchasing power.
With relevant, actionable strategies and information, you can make radical changes that will enable you to retire with more wealth and less stress. If you don’t, you will continue to pay more taxes and fees than necessary, be exposed to market volatility, and have less than you should have in retirement.
Copyright © Lyle Boss, all rights reserved.
Lyle Boss is a member of Syndicated Columnists, a national organization that advocates a fully transparent approach to money management. As an asset protection educator, he has helped thousands of seniors manage their financial retirement options. Its clients include government employees, teachers, doctors, farmers and executives, to name a few. Boss has been actively teaching advanced estate planning and wealth preservation for more than 20 years in locations like the University of Utah and in over 200 Senior Retirement Consumer Education Workshops in Utah, Idaho, and Wyoming. Boss and his wife Deanna live in South Ogden and St. George, Utah.
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