Discover why 95% of Retirement Plans FAIL

Discover the 5 most

dangerous retirement

plan myths that will

cause your retirement

plan to FAIL

ARE RETIREMENT

PLANS A WASTE

OF MONEY?

Hot Spot Investments - Copyright 2009

95% OF RETIREMENT PLANS ARE FAILING

Of the 77 million individuals planning to

retire in the next 10 to 15 years, 95

percent are hurtling toward failure

Only 5 percent will enjoy the luxuries of

a successful retirement

After a lifetime of hard work, 95 percent

of Americans will retire broke because

they believed in retirement plans that

have been failing Americans for

many years

Source: Ezinearticles 95% of Retirees Retire Into Poverty! Author: Bill Young former bank mortgage officer and licensed financial consultant

2


PUTTING INFLATION INTO PERSPECTIVE

3

Prices in 1957 Today’s Prices

Tuition at Harvard $800 $31,665

A gallon of gas $.23 $2.24

A pound of coffee $.69 $3.14

A gallon of milk $.97 $3.20

A dozen eggs $.45 $1.26

A pound of sugar $.11 $.51


COSTS CONTINUE TO SOAR

4

Source: pbs.org/frontline, BusinessWeek July 2008, author Tara Kalwarski

Health-care costs are

climbing, a 65-year old

couple now needs

$225,000 to cover health-

care costs vs. nearly

$400,000 in 2018 if costs

continue to rise at 5.8%

per year

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

2008 2018

Health Care Costs

$225,000

$395,000


FEES HAVE SKYROCKETED

An investor with $200,000 in retirement

funds averaging the S&P500 Index over the past 7 ½ years has seen an average

return of just 2.07% while experiencing a 44.73% draw down aka loss…meaning the

$200,000 was dropping instead of climbing!

Draw downs are typically defined as

broker fees, penalties and taxes

Who is really profiting with your hard

earned money?

5

Source: Diversify your IRA, 401K, Trust or other Tax Deferred Plan, Attain 7/16/07


SOCIAL SECURITY - BUSTED

Social security pays out an

average of $503 per month

Living on social security would

be comparable to living in jail

The only thing you can afford is

3 meals a day

6

Source: Social Security Administration 2009 http://www.ssa.gov/policy/docs/quickfacts/stat_snapshot/


BANKRUPTCIES ARE DEVASTATING RETIREES

Americans 55 and older had the

sharpest increase in bankruptcies in

2008 more than any other age group

They accounted for a full 1/4 of all

filings in 2008

Already nearly 2/3 of Americans are

financially forced to go back to work

during retirement

The next generation will be dealing

with social insecurity problems

7

Source: Those golden years have lost their glow, Los Angeles Times, September 2008


STOCK MARKET INVESTMENTS - BUSTED

There have been 9 bear markets in

the last 50 years

• On average every 5.5 years

• 3 dropped more than 40%

• From an all-time high in

October 2007, the market

dropped more than 56%

Some say the stock market is more

volatile than any other time in the

history of our nation

SOURCE: BTN RESEARCH, “ BEHIND THE NUMBERS,” MARCH 9 2009, NYTIMES, S. STOLBERG, FEB 18 2009

8

33%

33%

52%

56%

1969-1970

1987-1988

2001-2002

2007-2009


IS THE STRESS WORTH IT?

9

• Making or losing money has a dramatic physical effect on the body and brain

• When individuals are making money in investments their brain activity is indistinguishable from a cocaine high

• When stocks go up twice in a row, their brain automatically expects it to continue

• When stocks goes down unexpectedly, panic sets in

• Financial losses are processed in the same areas of the brain that respond to mortal danger

Source: ZWEIG, J. YOUR MONEY AND YOUR BRAIN, SIMON & SCHUSTER, 2007


EVEN IN THE BEST OF TIMES THE STOCK MARKET

FAILS TO PRODUCE ENOUGH FOR RETIREMENT

Even if the stock market

rebounds over the next 30

years, Americans will be

struggling to recover their

devastating losses instead of

growing their investments

And what evidence exists

that there will not be future

bear markets?

10


EVEN IN THE BEST OF TIMES, TRADITIONAL REAL

ESTATE FAILS TO PRODUCE ENOUGH FOR RETIREMENT

Short Sales & Foreclosures are likely to

establish the new reduced

“Fair market value”

Many Americans will fall short of their

retirement dreams as they purchase

“Fair Market Values” hoping to hold,

flip or rent and get rich “overnight” or

“when the housing market bounces

back”

After large down payments, vacancies,

evictions, low average growth rate of

5-6%, traditional real estate is a part

time job typically with less profit

11


SMALL SACRIFICES CAN HELP CREATE A

SUCCESSFUL RETIREMENT

For example, “Consumer Reports” featured an article entitled “Cut your spending by $500 per month”

A couple easily implemented six of the recommended ways and came up with a $500 savings…

12

Source: Jazzychad.com Blog, My code is compiling July 20, 2008

• Found cheaper auto insurance – saved $65/month• Optimized life insurance – saved $110/month• Cut back on telecommunication features – saved $35/month• Stopped paying bank fees – saved $25/month• Paid down credit cards – saved $65/month• Shopped wisely for food – saved $200/month

Don’t forget the $150 savings per month in Starbucks, McDonalds, Hollywood Video, etc.

• want a secure retirement

• are financially conservative

• understand that “get rich

quick” generally doesn’t exist

• are able to look at the long-

term picture

• want safe but productive

investments

• analyze risks and make

sound choices

• understand if they do nothing,

they will have nothing

There are investment

strategies for individuals

who…


RETIREMENT REALITY 101….

Remember, the average retired

American currently needs

$500,000 - $1M

With the average rate of

inflation (5.1% per year over

the past 40 years), in the next

30 years $2,301,614 –

$4,603,228 will be required for

a successful retirement

This will not be considered

extravagant living

14

Source: Calculations provided by HML Funding ,LLC, May 2009


REALITY #1 – 401(K) ANALYSIS

An investor with a 401(k) holding the

S&P 500 Index over the past 7 1/2 years

has seen an average return of 2.07%

If you invested $140 a month into a

401(k) with the company matching your

contribution, at the end of 30 years

your total value of investment would

only amount to only $139,560

Source: Diversify your IRA, 401K, Trust or other Tax Deferred Plan, Attain 7/16/07Source: Calculations provided by HML Funding ,LLC, May 2009

15


SO WHY NOT STOCKPILE GOLD?

16

According to Global Financial Data,

dating back to 1933 gold has

generated an average annual

return of 4.7%

If you invested $400 a month into

gold, at the end of 30 years your

total value of investment would

amount to only $315,032

Source: Gold glitters, but it's a bust as an investment, USA Today, 9/5/07Source: Calculations provided by HML Funding ,LLC, May 2009


TRADITIONAL INVESTMENTS LACK LEVERAGE

LEVERAGE

Without leverage, the average budget and

the average amount contributed toward

retirement has no chance to create

enough wealth for retirement

Leverage can recover portfolio losses in

new value, instantly double your portfolio

and make you cash liquid.

Creating wealth by using other people’s

money and resources is one of the oldest

and wisest traditions

17


UNDERSTANDING LEVERAGED RETURNS

18

0

1000

2000

3000

4000

5000

6000

7000

Non-Leveraged Investment: Stocks,

Gold, etc. $5,000 Value

Leveraged Investment: $60,000 Value

Annual Investment of $5,000

Dollar for Dollar Annual Growth Return


LEVERAGED VS NON-LEVERAGED PORTFOLIO

19

0100002000030000400005000060000700008000090000

100000

Non-leveraged position in Stocks, Gold, etc: No cash reserves.

Leveraged position: $30,000+- cash reserves

/ triple the portfolio value+- (inc. cash)

Portfolio Value

Cash Reserves (approx)


THE BOTTOM LINE WITH LEVERAGE

20

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

Stocks Gold 401K

Growth After 30 years, using historic annual growth averages and a $400/mo contribution ($140/mo for 401K).

LeveragedPosition


LET’S RECAP…

1. Not enough money is being contributed

to successfully retire

2. 95% of all retirement plans fail because

they lack leverage and adequate returns

3. Inflation affects the future value of

retirement savings

4. Traditional real estate and other

investments produce insufficient returns

and require large amounts of time and

money and induce stress

5. However, individuals have the ability

to prioritize and can retire

successfully on a small budget

21

A SMALL BUDGET CAN CREATE

A LIFETIME OF SECURITY

We are the investment safe haven,

we can help you…

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• Add hundreds of thousands+- to your retirement

• Instantly double your portfolio and convert

investments to cash reserves using leverage!

• Earn 120%+- dollar for dollar average annual

growth return using leverage

• Grow nearly 2 times faster and create far more

cash flow then traditional real!

• Gain 30%+- annually by growing TAX FREE

• Grow a portfolio at an average of 10%+- annually

• Gain up to 44% by eliminating drawdown

• Discover a new 10% Match Program

ALBERT EINSTEIN SAID….

INSANITY: DOING THE

SAME THING OVER AND

OVER AGAIN AND

EXPECTING

DIFFERENT RESULTS

PROCRASTINATION CAN BE

YOUR WORST ENEMY

24

According to a Yale University study, people forget 90% of the new informationthey learn in only 7 days:

-40% in 20 minutes-30% in 24 hours-20% in 7 days

Today is the time to plan for tomorrow, while you realize you are at risk of retiring broke or in poverty, before it’s too late, before the opportunity is lost...

CALL NOW TO SEE

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HIDDEN INVESTMENT

DANGERS YOU MUST

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BECOME PART OF THE

5% THAT WILL RETIRE

SUCCESSFULLY

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Date post:	17-Jan-2015
Category:	News & Politics
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Discover why 95% of Retirement Plans FAIL

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