Tom La Falce
Tom La Falce is a Founding Ambassador, Top Leader, Educator and Mentor with Marketing True Residual Income, a company who specializes in the education of the Hidden Financial Secrets of the Extreme Elite Wealthy, Rich and Famous. Have you ever heard of a Self-Funding Savings Plan with NO Out-Pocket Expense? That's why the Rich Get Richer because They Know the Hidden Secrets! © 2007 Tom La Falce, (888) 304-6728.
Tom La Falce has written 4 articles for SB Informer.
View all articles by Tom La Falce...

Inflation Proof Savings – Part III

Additional Hidden Financial Secrets of the Elite Wealthy, Rich and Famous - Part III

Tom La Falce

June 28, 2007

4.4/5.0 (5 votes total)

In this chapter, let’s talk about what you would really need to retire when your time comes? Many baby boomers who have a retirement plan in place will retire with enough to live on for about 2 or 3 years. Why so little you ask? They did not factor in the rate of inflation, interest rates or income tax. So, if you retire at of age of sixty-nine (69) and providing you live past 72, you will need to start looking for work once again. You laugh and may think… Yeah Right! But look around and you will see it wherever you go… men and women who are in their golden years are working at places like Sam’s Club, Walgreen’s, CVS, Costco, BJ’s, Department Stores, Restaurants, as Security Guards at Banks, Movie Theatres, Shopping Malls, Libraries etc. Are they all doing this because they are board? No because they have too! Why you ask? For the same reasons why we talked about in Part II… because their cost of living, medical, insurance, homes, automobiles, food, rent etc have all gone up each and every year. The problem here was they did not factor in inflation when they were working and saving because they did not know about it. If you study history, history will prove it! They say those who do not study history and learn from it and do not take action to change it, are doomed to repeat it.

To explain this a little further; if the inflation rate continues on the same track it has for the last 40 years, how much money will it take you to live per year when you retire? If you make $40,000 a year now, in 20 years it will take $100,000 per year just to maintain the same life style; $150,000 in 30 years and about $200,000 per year in 40 years. If you are 40 years old now and retire at the early age of sixty-nine (69) and you hope to live to be at least 85 years of age, you will need around 2 million dollars in your retirement fund or underneath your mattress just to live the same lifestyle you have now. So, take a look at what you are actually gaining in your retirement funds now and do the math. Will you have enough money when you retire? It doesn’t look that good now does it?

Once again history delivers the true facts. Let’s look at a History Report Card from 2003 to 2006. The stock market, which is what most mutual funds and typical retirement plans like a 401K are based on, had only increased by 34%. Gold bullion had increased 69% and Silver Bullion had increased 205% in this same time period.

For the first 6 months of 2006 the DOW increases were only 4.8%, NASDAQ fell -1.2%, S&P was up 2%, 10 Year Treasury up 5.2%, Real Estate was up 10%, Gold Bullion was up 20% and Crude Oil up 13%... However the real winner here was and always has been throughout history… is Silver Bullion… it was up 28% in the first 6 months of 2006.

Traditional Savings Plans from 1986 to 2006 have made tiny gains over this 20 year period. However, as of today they have not gained anymore! This is because the rate of inflation and interest rates over the last 20 years has been fighting against your dollar where it has lost anywhere from 40 to 60% of its purchasing power.

To clarify this a little bit more; if your traditional savings plan has gained 4.8% on average over the last 20 years and inflation has been at 6.8% on average, perhaps you may have made money… True? Yes, but you have lost 2% a year times these 20 year. That’s 40% of your purchasing power GONE BYE-BYE!!! So your money will only go about half as far or last half as long as you had originally planned. It doesn’t look that good now does it?

So here is the real question…WHERE would you like to save your hard earned money now? How about in Precious Metals and Numismatic Coins which are Tangible Assets that could be in your personal control? Why not do what the extreme elite wealthy, the rich and famous do, and that’s by transferring your dollars from Federal Reserve Notes into Tangible Assets that maintain their purchasing power and could go up in time?

Have you ever heard of a Self-Funding Savings Plan with NO Out-Pocket Expense? That's why the Rich Get Richer because They Know the Hidden Secrets!

To be continued… Stay Tune for Part IV

© 2007 Tom La Falce


Add comment Add comment (Comments: 0)  



Related Resources

Other Resources