The 5 Biggest Financial Threats You Face in 2023

As the New Year gets underway, it’s good to set goals and make plans – but it’s also important to review the biggest threats you face.

Here are the top 5 threats to your financial future in 2023…

Threat #1: 2023 Recession

If you had money in the stock market, you know how bad 2022 was. The S&P 500 lost nearly 20%, and the average 401(k) lost 22.9%. Seeing one-fifth of your life savings vaporize in a single year is a hard pill to swallow.

And after having the worst year in the markets since the 2008 financial crisis, it’s only natural to want to put that behind us and move on. However, what we want to happen and what is happening are two different stories. Economists surveyed by Bloomberg see a 70% chance of a recession in 2023 – which means it’s very likely things will get worse before they get better.

Threat #2: High-Interest Rates

Interest rates are at their highest level in 15 years – and will likely climb higher as the Fed continues to fight inflation. This means that your bank is going to charge you two arms and two legs now if you need to finance a purchase. And if you’re not careful, these high-interest loans can quietly sabotage your nest egg.

Thankfully, there’s a better way – a Bank On Yourself plan gives you fast access to cash with NO questions asked, without the high-interest rates. You can use the money for whatever you need without penalties for accessing it. And you can pay it back when and how you want.

Threat #3: Outdated Retirement Withdrawal Advice

Many people are still following outdated retirement planning advice. For example, the “4% rule” – which meant you could safely withdraw 4% from your retirement account each year – is no longer valid.

The current recommended annual retirement withdrawal rate is just 2.8% – which gives you a 90% probability of having your money last for 30 years.

So, if you had a $1 million nest egg, it would provide you with only $28,000 a year. What kind of lifestyle do you think that would give you? Does it even cover your basic expenses, let alone allow for any of life’s luxuries?

And don’t forget that if you’re saving in tax-deferred accounts like 401(k)s and IRAs, taxes will devour at least one-third of that. Which brings us to…

Threat #4: Postponing Taxes Until Retirement

If you have an IRA or a 401(k), you were probably told those are good ways to lower your taxes. And yes, your contribution does lower your taxable income today. But those government-controlled retirement plans do not allow you to avoid paying taxes. They merely postpone your tax bill until retirement.

Based on current tax rates, you’ll owe 25-50% – or more – of your savings when you take withdrawals from these plans. And when tax rates inevitably go up due to our country’s exploding debt, the largest fiscal stimulus programs in history, and aging demographics, you’ll need to be prepared for an even higher tax bill.

The good news is there are steps you can take NOW to reduce or even eliminate income taxes on your retirement withdrawals. The first step is to stop thinking that your government-controlled tax-deferred retirement plans will help. Your next step is to request a FREE, no-obligation Analysis here now. You’ll get a referral to a Bank On Yourself Professional who can show you better options.

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FREE ANALYSIS!

Threat #5: Outliving Your Savings

The typical 65-year-old will outlive their savings by 10 years, according to a study by the World Economic Forum. It assumes you will live an average lifespan. If you’re one of the “lucky” ones who does live longer, you could outlive your money by 25 years or more.

Take Richard Seymour, an 88-year-old retiree who lives with his 87-year-old wife in Maryland. He says, “Although I’m glad we’re alive, I’m scared to death…because we’ve outlived our money.”

Richard was confident they’d be ok with just a 6% average return on investment, knowing he and his wife also had Social Security, Medicare and supplemental health care insurance. “Ours was a fail-safe plan. Man, was I ever wrong,” says Seymour. “We now have no income other than our Social Security benefits.”

How Do You Avoid These Financial Threats?

Sadly, stories like this are far too common. I’ve personally investigated over 450 financial products, strategies, and methods touted as “fail-safe plans.” Most weren’t even worth the paper they were printed on.

This is why I founded Bank On Yourself in 2002. I wanted to ensure people achieve lifetime financial security and never outlive their money. There are safe and proven wealth-building strategies that give you all these benefits and more…

  • Guaranteed, predictable, competitive growth every year – no matter what’s happening in the markets or the economy (all Bank On Yourself plans hit a new record high in 2022 and are on track to do that again in 2023)
  • You can tell banks to take a hike and become your own source of financing… you can even use the money in your plan to buy something or to invest elsewhere, and your plan can continue growing as though you never touched it
  • You get tax-deferred growth and can take a retirement income with no taxes due under current tax law, which lets you avoid tax surprises down the road
  • Because the growth in these plans is exponential and your premium is guaranteed never to increase, you enjoy some built-in protection against inflation
  • There are guaranteed lifetime income strategies that ensure you never outlive your money, no matter how long you live

The Ultimate Financial Security Blanket in Both Good Times and Bad®

It’s easy to find out how to protect your nest egg from the biggest threats today.

In a 15-minute no-obligation introductory call with a Bank On Yourself Professional, you’ll discover how you can benefit from a custom-tailored program. And then you can decide whether you want to implement it or not.

Take action today to ensure your retirement dreams don’t turn into retirement nightmares:

REQUEST YOUR
FREE ANALYSIS!

The Secret to Eliminating Your Financial “Icks” in 2023

Two-thirds of Americans intend to make a financial New Year’s resolution for 2023, but only 20% are confident they’ll be able to keep their resolution.

That’s according to a new survey from The Ascent, a Motley Fool service. It’s not surprising why. It’s been a very challenging year, and everybody’s got a case of the financial “icks.”

In a year that many would just as soon forget, a few of the “low lights” include…

A Majority of People Worry about Money Daily, and Many Lose Sleep Because of It

[Read more…] “The Secret to Eliminating Your Financial “Icks” in 2023″

Social Security’s Big Cost of Living Increase (COLA) Means MORE Taxes to Pay

I just turned 70…

Which means I’ll be receiving a special “birthday gift” from Uncle Sam for the first time.

Yes, I’m talking about my first Social Security check.

Even though I could’ve started taking Social Security eight years ago, I decided to wait until now since I’m still working and don’t need the money now.

Which is great because now I’ll get the maximum amount possible.

So, I’m glad I waited…

And I was even happier when I heard that in January, we’ll see an 8.7% increase in our Social Security checks with the cost-of-living adjustment (COLA) – the largest increase since 1981.

On the surface that sounds like great news, right? I mean, who wouldn’t want a bigger Social Security check?

However, the devil is in the details, especially when it comes to retirement income, government benefits, and taxes!

[Read more…] “Social Security’s Big Cost of Living Increase (COLA) Means MORE Taxes to Pay”

Are “Termites” Destroying Your Financial Foundation?

Chomp… Chomp… Chomp…

That’s the sound of termites destroying your financial foundation.

But most people aren’t aware it’s happening. And it’s claiming more victims than you might think.

Of course, you’re aware of how inflation is eating away at the value of your dollars. You feel it at the grocery store, the gas station, when you pay rent, and just about everywhere you look.

But, if, like many Americans, you own a term insurance policy, personally or through your workplace, it might not even be worth the paper it’s printed on when you need it.

Inflation has been running at a 40-year high, currently around 9% per year. But let’s say the Federal Reserve gets it right and brings inflation down to 4% annually in the next few years.

Imagine that you have a $500,000 20-year term policy. In the event of your death, the benefit your loved ones would receive will lose up to 56% of its purchasing power.

[Read more…] “Are “Termites” Destroying Your Financial Foundation?”

Shaky Economy Stressing You Out? Here’s What to Do…

Feeling like a deer in the headlights right now? You’re not alone! Soaring inflation, stock market crashing, a pandemic that just won’t go away – and the only light at the end of the tunnel looks like the oncoming train of recession! We’re all getting squeezed from both ends…

It’s costing you 60% more than last year to fill up your gas tank.

Last month, you thought about buying a new home. This month mortgage rates have priced you totally out of the market.

Global supply chain glitches mean that things you bought all the time are almost impossible to find. (Seriously, a sriracha hot sauce shortage?!?)

Your low-interest charge cards are projected to average 20% in a couple of months – and the high-interest rate ones will be off the charts.

A few months ago, you were sitting on your big, juicy 401(k) or IRA and thinking of early retirement. Now, you’re praying they’ll let you keep your job when you’re 82.

Not long ago, you looked at your retirement account balance and felt euphoric. A humongous asteroid could be heading toward earth and the market would still go up! I can relate. [Read more…] “Shaky Economy Stressing You Out? Here’s What to Do…”

How to Shield Yourself from Market Volatility, Inflation and Interest Rate Woes

Stock market volatility has returned with a vengeance, as this chart of the Dow over the last 3 months starkly illustrates.

We’re facing a whirlwind of economic challenges we have little or no control over. Here are the top 5 currently contributing to the volatility:

Challenge #1: Inflation has hit a 40-year high

That’s hammering consumers, wiping out pay raises, and reinforcing the Federal Reserve’s decision to rip off the band-aid and raise borrowing rates multiple times this year alone, which some economists fear will trigger a recession.

Challenge #2: The pandemic and rock bottom interest rates pushed home prices up at a head-spinning rate

[Read more…] “How to Shield Yourself from Market Volatility, Inflation and Interest Rate Woes”

How to Avoid Depleting Your Retirement Nest Egg

The #1 retirement fear of Americans is running out of money. AARP reports that 50% of Americans share that fear.

And with good reason, because the average 65-year-old (the average retirement age in the US is 61) will outlive his or her savings by almost a decade, according to the World Economic Forum. Unfortunately, many will be forced to choose between putting food on the table or paying for life-saving medicine and may end up being dependent on their children.

We spend our working years hustling to build up our retirement nest egg. We assume that when we retire, we’ll supplement Social Security by withdrawing some of the principal. But no one can give us surefire guidance on how much we can safely take from our nest egg each year. In fact, William Sharpe, winner of the 1990 Nobel Prize in Economic Sciences, said retirement income planning is “the hardest and nastiest problem in finance.”

How long will your money last in retirement?

[Read more…] “How to Avoid Depleting Your Retirement Nest Egg”

Retirement Plan Unpredictability is a Major Wealth Killer

I have written at length about my research into the wealth-killing traps of 401(k)s, IRAs, 403(b)s, and Roth plans… and how to avoid them.

In this post, I’m going to talk about the trap of retirement plan unpredictability, and I’ll start by asking you a critical question:

Do you know what the value of your retirement account(s) will be on the day you plan to tap into them… and in 20 or 30 years?

If your answer to that question is “no,” then you don’t have a plan – you’re gambling.

Yet isn’t the money you’ve earmarked for retirement money you can’t afford to lose? On top of all of life’s stresses, do you really want to have to worry about when the next market crash could wipe out 50% or more of your life’s savings – as has happened twice just since the year 2000?

Market Volatility Has Proven to be a Cause of Health Problems and Even Early Death

[Read more…] “Retirement Plan Unpredictability is a Major Wealth Killer”

Tax Deferral is a Scam and Here’s Proof

Tax deferral is a con, and I’m going to prove it to you.

Actually, I’m going to let you prove it to yourself, with this 5-second experiment.

The conventional wisdom says, “Maximize your contributions to tax-deferred plans, like 401(k)s, IRAs and 403(b)s. Your money compounds without being reduced by taxes, and you’ll end up with more money during retirement.”

But is it really true?

The Society of Actuaries says that if the tax rates are the same, “It doesn’t make any difference whether [the taxes] are taken away from you at the beginning (tax-exempt) or at the end (tax-deferred). It’s the same fraction of your money that is left to you.”

But most people look at their savings and think it’s all theirs. You may have forgotten you’ll owe the IRS the taxes you deferred all those years – on every penny you’ve put in and every penny of growth.

If the tax rates miraculously manage to be lower during your retirement, you might come out ahead by deferring your taxes. But where do you think tax rates are headed long term? You must consider what tax rates might be during a retirement that could last 30+ years. [Read more…] “Tax Deferral is a Scam and Here’s Proof”

When Does Taxation Become Theft?

In his first 100 days in office, President Biden unveiled three colossal spending packages earning him the nickname, “The Six Trillion Dollar Man.”

Biden and Congress are just getting started with the most massive expansion of government since FDR’s New Deal during the Great Depression. Apparently, it’s desperately needed, even though the pandemic-caused recession is over.

This is a government that is notorious for wasting hundreds of billions of our hard-earned dollars every year. Think $518,000 to study how cocaine affects the mating habits of Japanese quails, $998,798 to ship two 19-cent washers from one state to another… and the list goes on. You couldn’t make this stuff up if you tried!

And let’s not forget this is a government with a long history of not being able to make much of a dent in controlling fraud and abuse. The government admits that more than $134 billion of improper Medicare and Medicaid payments were made in 2020 alone – and that’s just one government agency. [Read more…] “When Does Taxation Become Theft?”