What’s Your Safe Money Plan for Retirement?

Paper wealth is meaningless when it comes to true financial security.

Or, more accurately, there’s an enormous difference between paper wealth and real wealth. With investments, until you sell an asset and lock in any gains you have (hopefully) accrued, all you really have is a bunch of numbers on paper. This applies to your retirement and investment accounts, your college savings plan, your real estate appraisals and the valuation of your business.

In order to have true financial security, the numbers on your statements must be locked in and not subject to the whims of the market or economy. You should also be able to access your money for anything you want, any time you want, without having to ask permission or sell or liquidate assets.

In previous installments, I’ve discussed why it is so important for small business owners and self-employed professionals to have a safe and secure “Plan B” for retirement. Now I’d like to address how to do that.

Warren Buffett, who is arguably the most successful investor in history, has two simple rules for successfully building wealth:

Rule #1: Never lose money.

Rule #2: Never forget Rule #1.

Business owners and self-employed professionals take calculated risks in their businesses, but they should not risk their financial security when it comes to saving for retirement. Instead, they need what I call a Safe Money Plan. As with Buffett’s rule, there are two core principles to such a plan. It should allow you to:

  1. Get a little richer every single day.
  2. Never lose your principal or gains.

Five aspects of a true safe money plan:

  1. Guaranteed annual growth.
  2. No loss of principal or gains in a market crash.
  3. Liquidity – you can access your money whenever and for whatever you want with no restrictions or penalties for doing so.
  4. Control – you should control the money in your plan – not the government.
  5. Favorable tax treatment.

When you look at traditional investments — stocks, mutual funds and ETFs, bonds, gold/silver, real estate, currencies and art or other collectibles — every one of them violates Buffett’s two rules. They also lack most or all of the five characteristics for a true safe money plan.


Read more…

Source: https://www.entrepreneur.com

About the Author

How can you know what you should do if you don’t know what you can do? Author, radio personality, educator and financial planning pioneer Stephen Kelley shares his secrets to More Now, More Later™ retirement income planning. Most planners regard income planning as a “zero‐sum game,” a “Rob Peter to pay Paul” exercise. In these self‐serving, Wall Street‐dictated scenarios, people must limit the amount of income they receive to ensure they don’t run out of money in retirement. But there is an alternative to this “less now, more later,” or “more now, less later” mentality. Using state‐of‐the‐art income planning techniques, and his own trademarked “Last Things First™” planning process, Stephen Kelley blows the lid off the traditional Wall Street‐serving methods and brings retirement planning home to the individual retiree. In his books you will learn how to: - Unleash as much as 3 times the lifetime income using half the money with Kelley’s trademarked planning process, Last Things First™ - Ensure your Social Security benefits enhance, rather than impede, your plan. - Reduce, or even remove, taxes and fees from your retirement plan. - Maximize market returns while minimizing market risk. - Regain control of your pension so you not only get all the income you can, but so you can also leave it to your heirs. - Take control of the planning process so you can spend freely without worry. - Much, much more.

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