The Sole Predictor of Your
Financial Future
Kevin Hogan
The purpose today is to show you where your money is going to grow
or shrink, and, what you must do if you want to actually
build any kind of wealth. And there is really only one Master Key.
Before we begin, let's talk about "investing for retirement,"
the serious problems with the concept and the few things
that will make it work, at least to it's optimal objective.
Then we'll go straight to what builds wealth for real...what you can
do that predicts wealth...that is four times or more that of
the average person. (All statistics courtesy of the U.S. Gov't)
I can almost guarantee your retirement plan, 401K, stock portfolio,
will once again be lower in value at the end of this year than it was
at the end of last year. Maybe a lot lower.
In fact, watch the stock market have at least a mini-crash very
soon. For the last few years, Coffee Readers made money while
the rest of the world lost money because you knew what was going
to happen in the markets. It was obvious that gold and mining
stocks were going to do quite well.
For 2010, we have a similar situation with a market that has gone
straight up for absolutely no reason. The market is now quite
"expensive" again and I don't buy overpriced stuff until it becomes
priced right or under-priced. Make sense?
The money you've put in your 401K has dwindled over the
last 10 years, it has not grown. (This, of course, is not true for
those Readers who invested after reading Coffee. You guys
have done quite well and must have beamed when you saw
your year end statements. It is a good feeling.)
Starting in Spring 2009, The Market experienced a straight line up
with unprecedented gains. That's wonderful, but don't get hooked on
the drug. [When a package of gum is selling for $25, you don't
buy the gum. You wait for it to drop back to 79 cents...]
Special Note for International Readers: A 401K is an investment
umbrella that provides tax deductions now in lieu of paying higher
taxes when you pull the money out at "retirement." Recent
changes in US law allow individuals to shift their 401K to any
plan provider in the United States, but no one does because...
well... people are lazy. The 401K is a fabulous supplemental
income plan for people's retirement...for which people often
eliminate the word "supplemental." Everyone in the U.S. can
have a 401K and put the maximums allowed by law into the
vehicle...and they should almost always get providers outside of
their own corporation to hold the money...
But if someone isn't regularly analyzing when to buy something
and when to sell it, then they will end up with...almost nothing.
The average 401K has about $60,000 in it...after taxes, that's really
about $35,000...about enough to live one year in "retirement."
There is only one predictable singular road to financial freedom.
It has nothing to do with your 401K which will crash with the market when
it crashes. It has nothing to do with "investing," or "saving" and
nothing to do with debt or "The Secret" or anything you'd think....
Here's the scoop...
Go to your company website and look what has happened to your 401K
in the last decade. A lot of companies no longer have this
feature available for their employees because they are scared to
death you'll find out the reality... oh, by the way...are you sure
YOUR company is actually investing all of your 401K money in your
401K? Did you know you can have any of millions of financial
providers take care of that money for you? You don't have to stick
with your company's crummy investment choices....
Don't misunderstand. 401K is a GOOD thing. Even if the stock
market does crash again this year (and it will eventually either this
year or next), having something in a 401K is better than having
nothing in a 401K, and you did get the tax deferred til you are old and gray.
The problem is that people believe that their company
retirement "plans" are going to make them money...enough money to
retire on. And that...is disastrous thinking.
I have "a 401K." and it's stashed with money all of which
I will only see half after taxes and less when tax rates go up...assuming
the company the 401K is entrusted to doesn't go bankrupt.
Wealth won't come from a 401K for all but about 0.5% of Americans.
It's a nice thing, but darned unreliable if you come to believe it is
your future in and of itself...
Honest, how many people do you know that are wealthy because of
their 401K and the geniuses that invested the money for them?
Answer: Zero.
All of that said, it's CURRENTLY an excellent thing to have to
supplement your income someday, and a good thing to use as a
deduction on your taxes and maybe have a little something...
when you can withdraw it.....like a vitamin at the end of the day.
Sadly, the current administration is using the losses people have
suffered in their retirement accounts as leverage to take over these
accounts and turn them into annuities.
If I can offer one suggestion:
Anyone who is stupid enough to believe the government can
safely handle money beyond the tax money and social security
money you already have taken from you each week and watch it
disappear into the ether....well....use THIS ISSUE as a criteria as
to who to vote for in the next elections. Think about it....
So what IS the answer?
There is ONE key decision you need to make for yourself to have any
kind of wealth that YOU can be in control of...
Here is the problem and solution laid out in number form, then
you'll see The Plan.
The pictures that emerge are crystal clear. No ambiguity.
I want to show you how much your neighbor earns; the income of
people with various levels of education; how much your neighbor is
worth; and which group of people is the ONLY group of people that make
any real money.
(And you as an individual make this ONE choice TODAY!)
But first, really drink in these numbers... then continue...
Income Levels in the U.S.
The median (half higher, half lower) income for a family (household)
in the USA is now at $50,233.
113,000,000 households
7% have a net worth of $1,000,000...not bad.
The top 6.37% of all households in the U.S. earn 1/3 of the money.
The top 20% of all households in the U.S. earn 49.7% of all earnings.
20% of households top $100,000 in annual income.
Top 5% earn $157,000+ annually.
Bottom 20% <$20,291
Middle quintile ("middle class") $39,100--62,000
Highest quintile $100,000+
The average household income in the USA is now at $70,700.
A Masters Degree averages $90,000 base salary.
Doctorate Degree $100,000 average, half that for a PhD in Psychology.
The average family household income headed by a High School drop Out
24,492
The average family household income headed by a High School Grad
is 40,456
The average family household income headed by a person with a
Bachelor's Degree is $77,000
Professional degrees (m.d., d.o., j.d., d.v.m., d.d.s.) $99,000 average
Notice how much higher the average income is vs. the median.
A lot of people are doing things right.
Where you really want to be is in that highest 20%...earning $100,000
per year or preferably much more.
Quick side note:
Example: If 3 people are in a room and one
earns a single dollar bill, another earns $100,000 and a third earns
$1,000,000 per year, the average
is $367,000 dollars; the median (middle family) is $100,000. Make
sense?
Easy enough.
The government tells you flat out what will make you wealthy... 
Continue: Page | 1 | 2 | 3 | 4 | 5 |
Kevin Hogan
Network 3000 Publishing
16526 W. 78th St. #138
Eden Prairie, MN 55346 USA
(612) 616-0732
Photos appear under license with Stockexpert.
