Another One Bites the Dust…

“Horrible Consequences the Financial Services Industry Has Planned for Your Retirement”

“How do you think I’m going to get along…you took me for everything that I had and kicked me out on my own.”

These are lyrics from the hit song by Queen but could just as easily be the words of millions of Americans who have trusted the financial services industry to prepare and protect them for retirement.

This is because:

  • “90% of American seniors today (ages 60-89) are dependent on Social Security for at least one-third of their income, while
  • The majority of American Seniors depend on Social Security for more than 50% of their income, and
  • 20% of these seniors depend on Social Security for 90% of their income.”

Of course, single retired women are even more financially destitute with “97% of them dependent on Social Security for 90% of their income.”[i]

Greed is an evil incentive but never-the-less it is a major factor which plays into why so many American Seniors are suffering financially today.  You see, according to Forbes, financialization (the increase in the financial services industry’s income compared to other sectors of the economy), is costing Americans about $400 billion per year. This makes the financial sector not only a moral problem with rampant illegality and outlandish compensation, but a macro-economic problem of the first order.”

Just imagine what your share of that $400 billion each year would add to your retirement savings!  Even at a meager 4% annual rate of return you could double your savings compared to the typical savings of a 60-69-year-old.

Bloomberg has reported that Americans are only saving enough to last them 9-10 years in retirement. The problem is they are living 18-20 years into retirement.  In attempts to make up this savings deficiency, people are desperately assuming risks which they never would have entertained without their financial planner enticing them.  Then BINGO! “Another One Bites the Dust and Another One’s Down” and added to the Social Security statistics summarized above.

Stephen McClellan sagaciously states in his book, Full of Bull: Unscramble Wall Street Doubletalk to Protect and Build Your Portfolio, It is better to maintain a modest appreciation annually for 30-40 years than to assume higher risks. You must always realize that your downside potential is a series of losses which can become more serious of a debacle than a one-time larger loss. Therefore, the magnitude of gains is nearly irrelevant when compared to the losses suffered due to market conditions.”

Of course, to achieve a modest appreciation over 30-40 years you should be purchasing Participating Whole Life Insurance. It is the only guaranteed place where you can keep your money and experience sustainable growth, without taxation or assuming market risk, while still being able to take advantage of opportunities that arise without suffering opportunity costs.  That’s a big mouthful which means, Participating Whole Life insurance takes better care of your money over the long-term, without creating any financialization.

A savings plan which earns 6% annually on a $12,000 annual contribution will only provide $685,000 of liquid assets after 30 years due to the financialization that typical financial planning will steal from you in such a portfolio.  Unfortunately, your $685,000 would still be subject to either income or capital gains taxes as you use it in your retirement or if you pass it on to the next generation.  Yet, the same contribution used as a premium payment for a Participating Whole Life Insurance policy on a 35-year-old over 30 years would provide $687,000 which would be accessible without any taxation while still leaving over $700,000 for your surviving spouse or beneficiaries.  None of which would be taxable. In this case, no one is left to “Bite the Dust” when their spouse dies. Instead the surviving spouse has plenty, not merely a Social Security.

But much of this information is not disseminated today because of financialization…the transfer of wealth from you to the elite class on Wallstreet and Washington DC is the planned result of following today’s typical financial advice.  Don’t get lost in the glitz and glamour of the financial world.  Everything that glitters is not gold. Furthermore, there is no glamor found when you end up depending on Social Security for your income in retirement.

Not purchasing Participating Whole Life Insurance today will cost you in the future. There is no debating this fact. So, stop being allured and deceived by the financial services sector with their glitz and glamor and start making sure your retirement is sustainable, both for you and the ones you love.  You don’t have to “Bite the Dust” like so many millions of Americans have and continue to do today. You can be winner just call 702-660-7000.  We can help.

Dr. Tomas McFieDr. Tomas P. McFie

Most Americans depend on Social Security for retirement income. Even when people think they’re saving money, taxes, fees, investment losses and market volatility take most of their money away. Tom McFie is the founder of McFie Insurance which helps people keep more of the money they make, so they can have financial peace of mind. His latest book, A Biblical Guide to Personal Finance, can be purchased here. 

[i] How to Build Sustainable Wealth, page vi