Why “10 Times Your Income” Isn’t a Smart Retirement Goal

ChatGPT has been making headlines since it launched last year and gained 1 million users in the first week.

If you’re not familiar with ChatGPT, it’s an artificial intelligence computer program that generates human-like answers to almost any question you ask.

So I decided to conduct a little experiment and ask it a simple question:

How much do I need to retire?”

Here’s what the “robot” told me:

 ChatGPT's answer to how much money you need to retire

ChatGPT’s response struck me as yet another example of retirement “rules of thumb” that are outdated. Like “withdrawing 4% of your retirement savings each year will provide you with an income you won’t outlive.”

Why Retirement Rules of Thumb are Dangerous

A rule of thumb like “save 10x your annual income for retirement” may have been helpful 30 years ago when it was first coined, but not today – especially when taking inflation into account.

For example, let’s say your household income is $100,000, and you use the “10x rule” as your savings target for retirement, so you’d need $1 million.

The problem is that $1 million doesn’t go as far as it used to. Someone who bought $1 million worth of goods 30 years ago would need $2 million to buy the same goods today.

This is why many millionaires who subscribe to the “save 10x your annual income” are scared of running out of money in retirement.

In a recent survey of 1,600 people with at least $1 million in investable assets, 35% said, “it will take a miracle to achieve a secure retirement.”

Why are millionaires so scared?

Well, think about it. Even if you have $1 million saved, many experts say you should only withdraw 2.8% of your retirement savings each year, which is just $28,000 a year.

What kind of lifestyle do you think $2,333/month will give you?

Probably not your dream retirement, right?

Is “20 Times Your Annual Income” The New Rule of Thumb?

Maybe we should change the rule of thumb and make it higher, say 15 or 20 times your annual income?

That would be better, but it’s still the wrong question. Here’s why:

When you rely on rules of thumb as traditional retirement models do, you end up striving for some arbitrary goal – as the millionaires did in the survey mentioned above – only to later discover that you’ll still need “a miracle to achieve a secure retirement.”

And with this approach, you’d need these two miracles to happen to enjoy a worry-free retirement:

  1. Inflation to get – and stay – under control; and
  2. The stock market to not have any downturns between now and when you die

We call this the hope-and-pray plan

However, there’s another way you could approach this – a way that allows you to enjoy a secure retirement, regardless of what happens with inflation, the market, or the economy.

The Better Alternative to the “Hope-and-Pray” Plan

If you want to avoid the ups and downs of the stock market – or if you’ve been disappointed with traditional retirement advice and rules of thumb – it’s time to seriously consider what adding the Bank On Yourself strategy to your financial plan can do for you.


The Bank On Yourself strategy is a proven alternative to traditional retirement planning advice. Hundreds of thousands of folks across North America use it.

No two plans are alike – yours will be custom-tailored to your unique situation, goals, and dreams. A partial list of benefits you could soon be enjoying includes:

If you’re on the fence about this, consider what Robert Chambers, a retired Naval Commander from Carmel, CA, had to say about his experience:

“When I first heard about Bank On Yourself, I thought it was another investment scheme and almost didn’t look into it. I’m glad I overcame my concerns – it’s now the pillar of our financial plan. I hope you also overcome your concerns and find financial independence so you can enjoy life on your terms.”

To find out how a custom-tailored Bank On Yourself strategy can help you reach your financial goals and dreams – without taking any unnecessary risks – request your free Analysis here today.

There’s no cost or obligation to get your custom Analysis and Recommendations, so click this button to get started now:


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.


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: