A Surprising Solution to the 15-Year vs 30-Year Mortgage Dilemma

Jon and Jen have an opportunity to buy their dream home and lock in a historically low interest rate. This is a pretty common scenario in today’s market. In fact, you may be thinking about buying a home or refinancing your mortgage to take advantage of today’s low rates. If so, here’s a powerful option to consider…

Jon and Jen are trying to decide whether a 30-year mortgage or a 15-year mortgage makes the most sense. Their mortgage broker showed them that even with an interest rate just 0.65% lower, the 15-year mortgage would save them almost two-thirds of the interest of a 30-year loan.

They decided the 15-year mortgage made the most sense. Their thinking was, “We’re both 48 now, and we plan to work until we’re 70. The sooner we get the house paid off, the sooner we can save more for the future. Plus, we really like the idea of saving almost $90,000 in interest.” [Read more…] “A Surprising Solution to the 15-Year vs 30-Year Mortgage Dilemma”

How to Never Run Out of Money in Retirement – the Solution Top Experts Recommend

Would it surprise you to know that the #1 retirement fear is running out of money – a fear shared by fully half of Americans? That’s according to a recent study by the Aegon Center for Longevity.

People are deathly afraid of running out of money in retirement for good reason, experts say…

Over the last 40 years, there has been a dramatic shift away from company pension plans that promised workers a certain amount of money every month in retirement for as long as they lived.

Instead, there’s been a seismic shift toward do-it-yourself, cross-your-fingers, hope-and-pray retirement planning strategies like 401(k)s and IRAs. [Read more…] “How to Never Run Out of Money in Retirement – the Solution Top Experts Recommend”

Taxmageddon is coming – Here’s How to Protect Yourself

President-elect Joe Biden has repeatedly said he will increase numerous taxes and eliminate the Trump tax cuts on “day one,” which would impose a $2,000 annual tax hike on a median-income family of four.

He has promised to as much as double the capital gains tax rates on your investments.

Biden/Harris have proposed canceling student loan debt and are being encouraged to do that by executive order as soon as possible. It would add hundreds of billions of dollars to our already-skyrocketing national debt.

In reality, there’s no such thing as “canceling” or “forgiving” student debt – they can call it anything they want, but it simply means sending the bill to the taxpayers.

Biden wants to raise the corporate tax rate by 33%. [Read more…] “Taxmageddon is coming – Here’s How to Protect Yourself”

What Fairy Tales and Myths is Your Financial Advisor Feeding You?

I’ve spent the last two decades proving there are many investing and retirement planning myths, lies, and fairy tales that most people and financial representatives blindly accept as fact.

It’s really not their fault. Wall Street spends billions of dollars every year to brainwash us.

As the late President John F. Kennedy observed…

The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth – persistent, persuasive, and unrealistic. Belief in myths allows the comfort of opinion without the discomfort of thought.”

Here are 3 fairy tales you’ve probably heard from your financial advisor and the facts about each:

Fairy Tale #1: You Must Risk Your Money in Order to Grow an Adequate Nest-Egg

This is undoubtedly Wall Street’s BIGGEST lie. [Read more…] “What Fairy Tales and Myths is Your Financial Advisor Feeding You?”

The 5 Biggest Threats to Your Retirement Security Today

Recent studies and surveys show that pre-retirees and retirees fear these five threats to their retirement finances most – and with good reason. Which of these keep you up at night?

Retirement Security Threat #1: Outliving Your Money

This is such a big and scary threat that some people say they would rather die before their time than run out of money.

Unfortunately, the likelihood of outliving your money is all too real. The average 65-year-old will outlive their savings by almost a decade, according to a recent study by the World Economic Forum.

To determine how much money you’ll need to have saved by the time you retire, a good guideline is the “Rule of 25,” which says you should multiply your total annual expenses by 25. By that measure, to have $100,000 per year (don’t forget to adjust for inflation) to spend in retirement, you’ll need to save $2.5 million.

It’s also important to consider that you may well live longer than you imagine, and studies show people tend to underestimate their life expectancy.

Retirement Security Threat #2: Market Risk

[Read more…] “The 5 Biggest Threats to Your Retirement Security Today”

Why the Best Way to Get Cash Fast is a Bank On Yourself Policy Loan

When the Coronavirus pandemic and shutdown hit, millions of people found themselves out of a job, and many others had their hours and pay cut.

The government stepped in to provide stimulus, but many people had to wait weeks or even months to receive it.

And just when many people needed fast access to cash, charge card limits were reduced or even canceled without warning.

As Mark Twain wryly noted…

A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain.”

Bank On Yourself Comes to the Rescue…

When you need fast access to cash, what’s the fastest and easiest way to get it? A Bank On Yourself policy loan because it’s money you can get your hands on: [Read more…] “Why the Best Way to Get Cash Fast is a Bank On Yourself Policy Loan”

Why More Experts Are Now Saying It’s Time to Ditch Your 401(k)

A growing number of retirement planning experts are joining the chorus of people saying 401(k) plans no longer make sense for savers in recent articles on Motley Fool, Bloomberg, MarketWatch, and other major publications.

They’re lamenting that one of the biggest appeals of the 401(k) – the ability to make contributions with untaxed dollars in exchange for tax-deferred growth and withdrawals – is disappearing.

The national debt was already skyrocketing before the pandemic spurred the biggest fiscal stimulus programs in history. And a surge in unemployment has lowered tax revenue for federal and state governments.

What do governments typically do to counter budget deficits?

They raise taxes, of course!

And as taxes rise, deferring them in a 401(k) or IRA means you’ll pay more later – potentially a lot more.

Even before the pandemic, the Center for Retirement Research said people lose 25%-33% of the value of their 401(k) to taxes… and most people are shocked when it happens because they forget they’ll owe the IRS taxes on every penny they’ve put in and every penny of growth they’ve deferred.

Do you know what the tax rates will be in 20 or 30 years from now? For that matter, do you know what they’ll be next year or in two years?

[Read more…] “Why More Experts Are Now Saying It’s Time to Ditch Your 401(k)”

Coronavirus Pandemic Exposes Cracks in 401(k) Plans

I’ve written extensively about why more and more experts are warning that the 401(k) is an experiment that’s failed, and why the man considered to be the “father” of the 401(k) says it’s a monster that should be destroyed.

But the pandemic, shutdown and resulting economic downturn have exposed dangerous cracks in the 401(k) system. I’ll explain three of them here and show you how to protect yourself…

New 401(k) Problem #1: Companies are Suspending Matching Contributions

Tens of millions of workers have already been affected, and more companies have announced their plans to suspend the 401(k) match.

That’s a real blow for employees who’ve come to think of the match as “free money” and assumed it’s a perk that won’t be yanked with little warning.

But the reality is that the employer match isn’t really “free money” at all. According to a study by the Center for Retirement Research, for every dollar an employer contributes to your 401(k) match, they pay 90 cents less in salary to men and 99 cents less to women!

Translation: For every matching dollar you’re given, you really only receive 10 cents or less in total compensation. [Read more…] “Coronavirus Pandemic Exposes Cracks in 401(k) Plans”

How to Be Financially Prepared for Any Emergency or Black Swan Event

By definition, an “emergency” is an unexpected and difficult or dangerous situation which happens suddenly and requires quick action to deal with it.

The unexpected doesn’t wait around for you to get your act together. But does that mean you can’t be prepared for an emergency… even one as devastating as the coronavirus pandemic and lockdown?

Are you willing to play a little game of the imagination and find out?

What if you were forewarned two years ago that in March of 2020…

  • We’d be in the grips of a pandemic and there would be a shutdown of virtually the entire economy
  • Tens of millions of people would lose their jobs and you could be one of them. And many others would have their hours and pay cut
  • The government would step in and provide stimulus, but it could take a month or two or more until you receive it
  • Your charge card limits could be reduced or even canceled without warning
  • Stock market volatility would return with a vengeance and your plans for retirement could be upended for years or even a decade to come
  • People of any age could be debilitated or even die after being infected with the virus

If You Had Been Warned of This Two Years Ago, What Would You Have Done Differently?

[Read more…] “How to Be Financially Prepared for Any Emergency or Black Swan Event”

How to Avoid the Pitfalls of 401(k)s and IRAs: Pamela Yellen’s Interview on Beyond 50 Radio

I was just interviewed on Beyond 50 Radio about the wealth-killing traps of 401(k)s and IRAs and how to avoid them.

When you listen to the replay of this interview by clicking on the play arrow below, you’ll discover:

  • How the pandemic has exposed the shortcomings of traditional retirement accounts
  • Why the 401(k) employer match isn’t really “free money” at all
  • Why you should never let your employer choose where to invest your 401(k) contribution – most employers now automatically invest your money, and almost no one questions it!
  • Why you’re likely to retire in the highest tax brackets of your life – and how to legally slash your tax bill
  • How the fees hidden in 401(k)s can devour 40% or more of your hard-earned money
  • The critical difference between saving and investing for retirement
  • Why you need an emergency fund equal to two years of your household expenses
  • How to have quick and easy access to the money you need to weather the challenges life unexpectedly throws at you – and how you can get the exact same growth on that money as though you never touched it
  • The real reason many financial representatives will steer you away from the Bank On Yourself strategy
  • What the Bank On Yourself strategy is in a nutshell

You can listen to the interview by pressing the play arrow below…

[Read more…] “How to Avoid the Pitfalls of 401(k)s and IRAs: Pamela Yellen’s Interview on Beyond 50 Radio”