In past years, even as a child, I remember hearing adults speak about the growing equity in their homes and that someday, they would take the one time exemption (the tax laws at the time), sell the big house and downsize to something smaller, thus using the cash as a supplement for retirement. I grew up with that forced sense of saving in mind and with a somewhat similar plan in the back of my mind.
Banking on the equity that came from faithful payments of one's mortgage loan, a goal that most of my parent's generation sought. Things have changed! Most today, even before the real estate market meltdown, did not think that way. Many of my clients would say, they just convince themsleves that they would always have a mortgage payment. I always worked to try and help them see things from the prospective of debt free living, not always successful, I might add! Some of that probably is a result of the instant gratification society that we live in today, but I am digressing and want to get back to my point.
For those who may still have had the thought that the equity in their home would supplement their retirement someday (even if they have been faithful in making their payments and have not taken cash out refinances or equity loans), the market meltdown has erased the hope of that! To no fault of the individual homeowner, an article in the USA Today indicates that home equity has sunk to nearly the lowest point since World War 2. If you are in my generation and you are thinking about retirement in the next several years, the housing market wows are probably on your mind regularly...
There are alternatives and it is not too late for you to recover from this and all saving meltdowns. The stock and bond markets have not been in your favor either. But the reality is that for most, the markets other than the real estate market, have not been in your favor. In another article I read recently the author suggested that most individual investors get in the market at or near the top and sell at or near the bottom, not the way it is supposed to work!
Ironically, people who understand the power of banking will have done better saving the monty they invested in the market at their local bank or credit union! But there is more to understanding banking than to simply deposit your money. R. Nelso Nash, the founder and engineer of the Infinite Banking Concept says that everyone should be in two businesses; the one you make your living with and banking! Privatized Banking not only gives you the ability to capitalize on compound interest, but it gives you the ability to reverse the trends of our money flow, allowing you to keep more of your hard earned money. And, it works no matter what the economy does!
Take some time to educate yourself about the power of privatized banking and do it now! Click here to view our Online Seminar on How Privatized Banking Really Works. Or enter your question on the contact form and I will respond to you promptly. There is still time to build your nestegg.
Finally, young people working and contributing to 401K's, 403B's, etc. watch the seminar . And if you are facing mandatory distribution from your qualified accounts, use the contact form. Let us help you avoid double taxation of your hard earned money!
Jim Dierking
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