My Retirement Action Plan

Can YOU Afford To Retire?

It's a fact today that a growing number of people simply cannot afford to retire.

*One-third of Americans over 50 aren't confident that they will have enough money to retire, and over two-thirds expect to have to keep working well into old age. Despite making good incomes, many people live paycheck to paycheck and see their IRA and 401K funds either not growing fast enough or even shrinking with the stock market. Plus, they're concerned about whether Social Security's going to be around when they hope to retire. (*Source: TransAmerica SecurePlan March 12, 2008)

I was one of these statistics and decided to do something about it. I've spent several years studying and researching virtually everything I can get my hands on about investing: books, tapes, CD's, DVD's, seminars, webinars, workshops, investor's clubs, you name it!

Here's what I learned from all of this:

My IRA and 401K funds didn't even offer some of the most lucrative investment alternatives available!

1) Approximately 97% of IRA and 401K funds in the United States are limited to "Traditional Investments" which are primarily stocks, bonds and mutual funds.

2) Most Fund Managers and Financial Advisors are NOT going to tell you about "Alternative Investments" outside of their own investment offerings because they don't earn a commission for doing so.

As a result, people like you and me are kept in the dark about valuable investment alternatives that could help us achieve our retirement goals. Furthermore, because of this restriction imposed by our own 'trusted' financial fund managers and advisers, most people are not properly diversified and therefore, at risk in the event of a severe stock market downturn.

What You Can Do About It

I've spent years perfecting a "Retirement Action Plan" to achieve my own financial goals. Now I'm on a mission to educate others and help them toward their retirement goals using what I've learned and implemented for myself.

MY RETIREMENT ACTION PLAN

1) Take control of your investments and responsibility for your retirement: Essentially this means making a promise to yourself to be responsible for your future and not simply rely on others to do this for you.

2) Establish specific financial goals for your retirement: You'll need to ask yourself critical questions to determine how much it will cost you to live during retirement and how much money you'll need to have in your portfolio to support you. (e.g. How long do I expect to live in retirement? Where do I expect to live? What type of lifestyle do I want to lead?)

NOTE: Many people will find that they do not have sufficient funds to support their retirement goals. Don't panic! This is exactly where I was too. The following steps will help you learn how to close the gap between what you have and what you need to achieve your goals.

3) Start educating yourself about your existing investments and finances: Congratulations! You've already started by visiting this blog. First, get organized. Itemize each of your investments and assets - review past performance of each. Become familiar with investment terminology and alternatives.

4) Research "Alternative Investments" and how to truly diversify & protect your portfolio. **(See page bottom for information on Alternative Investments)

5) Consider converting your Traditional IRA to a "Self-Directed IRA" account. This will allow you to invest your IRA funds in a whole new spectrum of Alternative Investments that were previously not available to you.

6) Consider new investments (in both Traditional and Alternative Investments) that will help you achieve your retirement goals. There's an old saying: "If you keep on doin' what you've always done, you're gonna keep gettin' what you've always got!" There's truth in this. If there is a gap between what you have saved today and what you'll need to retire, changes have to be made.

7) Make the changes in your portfolio, stay involved and keep studying alternatives! This isn't a one-time deal, you need to stay close to your investments and adjust as needed. (Remember the promise you made to yourself to take control of your future in Step 1.)

Alternative Investments

Approximately 97% of all U.S. IRA and 401K portfolios are entirely invested in Traditional Assets (e.g. stocks, mutual funds & bonds) with similar price movements. As a result, these portfolios are at extreme risk in the event of a market downturn, which, if severe enough could wipe out people's lifetime savings and set them back many years in their plans and dreams for retirement.

Much more consideration, therefore, needs to be given to including assets with dissimilar price movements, which we call "Non-Traditional or Alternative Assets" to hedge against market risk. What are they?

Here are a few examples:

-Land Development Projects (my personal favorite)
-Commercial & Residential Real Estate
-Precious Metals (gold, silver, platinum, etc.)
-Gemstones (diamonds, rubies, etc.)
-Commodities
-Oil & Gas
-Tax Liens & Tax Lien Certificates
-Trust Deeds
-Tenancy In Common Properties (TIC's)
-Real Estate Investment Trusts (REIT's)
-Timberland
-Fishing Rights
-Etc.

All investors should seriously consider incorporating some of these into their portfolios if they want to be 'Truly' Diversified and protected when the market winds shift. But be sure to do your homework first.

I really encourage you to embrace this action plan - it can put you on track for a secure retirement.

To learn more, click on the picture below:

Until next time! Retirement Wiz (you can email me at Johnha7@yahoo.com)