January 29, 2010
January 13, 2010
I recently saw a commercial where a company was claiming to help clients get their retirement plans ‘back on track.’ That got me thinking…how long will it take the average person to make up for the losses they suffered during the near market crash? And also, wouldn’t it be nice if something as important as your retirement funds were not subject to the roller coaster ride of the market?
There has to be a shift in thinking, traditional financial planning just isn’t working anymore! Watch this short video where a certified financial planner tells how 40 and 50 year olds can protect their retirement: Video
My favorite part of the video:
Certified Financial Planner: “make sure you’re investing in your 40’s and 50’s, especially in this market, everything is cheap right?”
Anchor: “Yeah except if your retirement plan has tanked lately.”
CFP: “Well that’s the key of being in your 40’s, you’ve got time. I mean you’re not going to retire for 20, 30 years right?”
She continues on to say that if you are worried about the economy, “make sure you’re still investing in your 401k.”
WHAT?!?!? So let me get this straight, I am upset that 20, 30, sometimes up to 50% of my retirement funds are gone and to make sure I “protect my retirement” I should keep throwing money into the very vehicle that has lost all that money?!?
As I stated before there has to be a shift in thinking, traditional financial planners are still using buzz words like asset allocation, diversification, risk tolerance, and for some reason are still advising their clients to put their money at risk in hopes of high returns.
Why worry about having to get your financial plan ‘back on track?’
If you could save for retirement in an efficient, risk free, and tax advantaged way would you? Would you rather have constant, predictable growth, or a risky roller coaster ride with an unknown outcome?
While those advised in the traditional manner are postponing retirement and waiting for their investments to make up for lost money, you could be enjoying steady returns and have more control over your financial future.
The key is to stop losing money!
January 6, 2010
Most of us are hearing about the government spending a Trillion Dollars, or at least you’ve heard of Mark Titus’ quest for the trillion, but to the average American it’s just a word.
Some of you may have seen these graphics floating around the internet lately, but if you haven’t you need to take a visual look at a Trillion dollars.
First off a Trillion is a 1 with 12 zeros, it looks like this: $1,000,000,000,000. Okay, so it’s a big number, but let’s put it into perspective.
Before we get to what a trillion dollars looks like visually, here are a couple of interesting statistics:
- 1. If the printing presses ran from 8-5 every working day, 5 days a week, it would take 72 years to print 1 trillion dollar bills.
- 2. Stacked on top of one another a trillion dollar bills would be 70,000 MILES high.
- 3. If you could have spent 1 million dollars per day since the birth of Christ (2009 years ago) you would still need another 740 years to spend a Trillion dollars.
- 4. One million seconds ago was 10 or 11 days ago — One billion seconds ago was during the Nixon administration One trillion seconds ago was 30,000 years BC…..wow!
- 5. To count out One Trillion ($1,000,000,000,000) dollars nonstop without sleeping or eating it would take Thirty-Nine Thousand (39,000) years.
- 6. If your annual salary or wage is $50,000 it would take you 20 million years to earn a trillion dollars.
- 7. We could wrap the earth about 4700 times with a trillion one-dollar bills laid end to end around the globe.
- 8. Assuming there was a roll of 1 trillion – $1 dollar bills, it would take a military jet flying at the speed of sound, reeling out dollar bills behind it, 14 years before it reeled out one trillion dollar bills.
So there’s a little “Trillion Dollar Trivia” for you!
Okay, now let’s look at a Trillion dollars visually.
Here we have a man standing next to 1,000,000 (1 million bucks!) You could put a million in your backpack and have lots of fun!
Notice how small it is compared to an average man.
Next we have $100 million dollars. This can be neatly stacked on a pallet about 4 feet high.
Now we have $1 Billion dollars. This is 10 pallets of $100 million each. This used to be a lot of money…..but to congress a billion dollars falls out of Uncle Sam’s pockets like change.
Although a billion would be a lot of fun to spend……how does it look compared to 1 trillion?
HERE IS 1 TRILLION DOLLARS!
Look at this……what we have here is 10,000 pallets (double stacked so they are about 8 feet high) and each pallet has 100 million dollars on it.
Can you see the little man now in the bottom left corner?
So maybe now we can get a glimpse of the burden government is putting on us in terms of long term debt for this “stimulus” package. Anyone want to run a credit check on the borrower? Oh I forgot, most of the borrowers aren’t even born yet!
*Thanks to Dan Thompson for this post*