Imagine for a moment your entire life packaged up on a rollercoaster ride. The rollercoaster starts out slow and hey, you’re hopeful, because you’re heading up. But pretty soon, there’s a lull at the top, a sharp drop to the right, a swerve to the left and a couple of loopdy-loops which never quite get as high as the original climb. Welcome to most of financial America.
Last week, a Bloomberg article spilled a financial forecast across the internet that nobody in America who’s invested in the stock market wants to hear (or think too much about).
“The Next 10 Years Will Be Ugly for Your 401(k),”.
The tagline accompanying this charming headline isn’t any better: “We’re about to pay the price for all the good times.”
Whether we do want to think about it or we don’t, it seems that reality for those investors is eventually going to hit, like it or not.
After analyzing the report form Research Affiliates, Suzanne Woolley, Bloomberg financial writer and editor goes on to deliver a message that will take the wind out of anyone’s sails:
“We should start getting used to disappointment.”
Can you imagine what life must be like, living day by day with I must start getting used to disappointment?
Seriously folks, wake up!
Wake up to the reality of relinquishing control of our money and gambling with it.
Not for you or for those you care the most about.
The article then reads, per the report from Research Affiliates, the average annualized long-term expected return, after inflation was factored in, dropped to 4.6 percent.
Research Affiliates pulled from 11 retirement calculators, robo-advisers, and surveys of institutional investors to illustrate that over the next 10 years, the likelihood of a typically-balanced 60/40 US portfolio actually reaching a 5% (or more) rate of return…is 0%.
ZERO %. 0%. Absolutely no-freaking way – it will literally be a cold day in hell if a 60/40 portfolio hits a 5% return a decade from now.
Here’s another blow that comes from John West, head of client strategies at Research Affiliates:
“If the retirement calculators say we’ll make 6 percent or 7 percent, and people saved based on that but only make 3 percent, they’re going to have a massive shortfall,” he said. “They’ll have to work longer or retire with a substantially different standard of living than they thought they would have.”
That’s enough to tighten anyone’s stomach up. (And you can read the whole gloomy article here.)
For me and my clients – we’ve planned to be safe from this type of catastrophe.
But I can’t get my mind off the millions of well-intentioned Americans who are going to be stuck in that situation.
Life does not have to be Ugly nor does it have to be a disappointment.
20/20 Personal Banking System the new Rockefeller Blueprint assures you of just that.
Learn more. At 2020personalbankingsystem.com