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The 40 by 40 plan - working 40 hours a week for 40 years is the recipe for financial freedom and success - the long, happy retirement - it is what we are taught from our earliest memories, we spend years in school and study to live this ideal.
Yet only 5% of people can have a retirement that is rewarding, the rest are dead or eating dog food. The stats are inside, read on...
So you worked the 40 by 40 plan all your life, your lived the American/Australian dream bought a house and paid it off, bought new cars, had good clothes, sent your kids to school - you've made it to retirement - financial freedom and success! Now with years of happy living in retirement and all the rewards for all that hard work and time you sacrificed - or do you?
How much financial freedom does the average person attain in life?
Here is a breakdown of the average population for 100 people at age 65
DID YOU KNOW…
25 ARE DEAD
20 HAVE ANNUAL INCOMES UNDER $10,000 - (Below the Western poverty line )
51 HAVE ANNUAL INCOMES BETWEEN $10,000AND $ 35,000 (Median is $ 18,000)
4 HAVE ANNUAL INCOMES OVER $ 35,000
1 IN EVERY 100 IS A MILLIONAIRE
Thats 45% are dead or dead broke!
Only 5% of the population can put their hands on $10,000 when they hit retirement at age 65 when they have supposedly reached their financial freedom.
The 40 by 40 plan isn't looking so exciting now is it, but wait it gets worse...
When Social Security was started there were 16 people working for every one person on the program (16:1).
Today the ratio is 3:1
In the next 12 years it is projected to be 1:1
Where will you be? Will you be the one paying exhorbitant taxes to support one old person on social security and all his health problems, or will you be the old person living on a pittance because the government spent all your social security tax dollars on giving themselves raises and overseas holidays and fat bonuses with a government pension plan???
"Today’s average 50 year old has only $2,300 saved towards their retirement." - J. Urcivoli, Sr VP Merrill Lynch
Time to think about your future financial freedom is now. Unplanned retirement is not the dream life it has been made out to be. To change your outcome you need to change your thinking, if you do what everyone else is doing you'll end up the sameas everybody else. The above figues show the 40 by 40 plan isn't working. You need to change the way you think if you want the life you dream of. Make a plan for your retirement now, or you'll like be one ont the 45% dead or dead broke.
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