If you’re counting on your 401(k) or IRA for retirement income, I have some bad news for you…
A new analysis of the Federal Reserve’s latest Survey of Consumer Finances by the Center for Retirement Research demonstrates that 401(k) plans are destined to fail millions of Americans.
The Federal Reserve survey is updated every three years, and the latest one reveals that, in spite of the long-running bull market and an improving economy … the typical couple nearing retirement will only receive $600 per month from their 401(k)s and IRAs combined.
That $600 a month is not indexed for inflation, so its purchasing power will decline over time.
And that $600 a month is likely to be the only source of income people will have to supplement Social Security because the typical household has virtually no other savings outside of its 401(k) and IRAs.
The Retirement Savings Shortfall News is Even Worse for Younger Workers with 401(k)s
Households headed by someone between ages 55 to 64 were the only group to experience an increase in their combined 401(k) and IRA balances. The median balance increased from $111,000 in the prior survey to $135,000 – not adjusted for inflation.
That’s only a fraction of what a couple needs to survive.
But the 401(k)/IRA balances of households headed by someone age 45 to 54 actually declined by an average of 3% since the previous survey three years ago. Their average balance is $97,000.
And the retirement account balances of those age 35-44 declined by an average of almost 20% since the last survey, to an average of just $40,000.
The reasons cited for such poor performance include persistently high fees and “leakages” that occur from cash-outs at the time of a job change.
That’s the same conclusion the “father of the 401(k),” Ted Benna, came to, as well. In a recent interview, Benna discussed three reasons why you should be very leery of both 401(k)s and IRAs.
Ted Benna says that he has “put most of my money” into high cash value, dividend-paying whole life policies most commonly known as Bank On Yourself-type plans, because they avoid the dangers that traditional retirement plans face.
Continuing to Do Something that Isn’t Working Is INSANITY
There is a proven alternative to 401(k)s and IRAs, but Wall Street desperately hopes you never hear about it.
After all, the only guarantee Wall Street gives you is that they get paid whether you win or lose.
The Bank On Yourself safe wealth-building strategy gives you an unbeatable combination of advantages, which include:
- Guaranteed, predictable, competitive growth each year – even when the market is crashing
- Liquidity and full control of your money in the plan
- Your hard-earned money is protected by a 5-layer safety net
- Your money grows tax-deferred, and you can access both your principal and growth with no taxes due
- Your plan and its growth are generally not reported to the government or the IRS, which gives you privacy
And the good news is that you can find out what your bottom-line numbers and results would be before you decide if it makes sense to add Bank On Yourself to your financial plan.
It’s easy to get started – just request your free, no-obligation Analysis now, if you haven’t already.
You’ll also get a referral to an Authorized Advisor who can answer any questions you may have and show you ways to free up funds to start your plan.
If you start right now, you could begin enjoying an unprecedented level of financial security and peace of mind in the New Year. So don’t dilly-dally! Request your FREE Analysis here now: