Has Financial Security Become Impossible Even at $500K a Year?

Riccardo Ferrari - Financial Security

The definition of financial security is having an unshakable income that can stand strong over time, enough to pay your bills and lifestyle without having to work for the rest of your life.

Today, for most professionals,  even with a high-paid job or a viable business making $500k yr., true financial freedom may no longer be possible.  In the times we are living in now, high prices and runaway inflation are not temporary and will keep growing. A government can’t print $9 trillion in two years and get away with it. And we learned how fragile our life is. Economic crashes, pandemics, rogue administrations, socialism, high taxes, unfriendly laws, downturns, and rapid change.

Inflation will accelerate, as it did in the U.S. in 1980 and in Germany in 1920. When hyperinflation comes so fast and so high above 5%, the damage is done. Most people’s savings and pensions are at an all-time low. This time it will take decades to recuperate. There are no Volckers or Reagans on the horizon today.

Now a $ 500k-a-year professional will save barely over a million dollars in 30 years and cannot maintain the same lifestyle. Just the opposite, retirement would scale back to a middle-class lifestyle or even less. 

FinancialSamurai.com breaks down the expenses and financial planning of a couple making $500k a year in most US states. The analysis puts the average savings after expenses at $4,500 a month. In 30 years that’s $1,440,000. Adjusted at 45% inflation (if inflation is 1.5% a year, right now is 8%!) you are left with $972,000 in purchasing power and maybe much less. 

If you have saved $36,000 a year in a 401K at 6% you have $216,812. If that 401k doesn’t get wiped out by a  crisis like 2008 and the one that’s coming. 

Hopefully, you are smarter and made more powerful investment decisions than a fragile 401k, or stock market or real estate investment that can crash at any time.

To truly achieve financial freedom, you have to step out of the conventional, stop talking to financial advisors and their 4% return crap and carve your own fortune.

Today investors MUST have alternatives.

 If complete financial security is your goal, and why shouldn’t it be, then you need to plan your exit from the corporate world and look beyond a mere 4% to 10% investments. It starts with mindset.  Because you will need to think differently and do things you never did before. 

Your first step is to rethink money and find ways to accumulate it faster. 

  • The model of having a job or a business (which is also a job) save money and then invest it in
    401k or IRA at 6%/yr. 
    Gold at 2%/yr. 
    Real Estate at 7%/yr. 
    Mutual funds at 5%/yr.
  • S&P 500 10%/ yr.
  • Hedge Funds 7%/yr
    is a model that will never lead to financial stability.

I help investors understand other forklifts that are available to get more from their money.  How to stop being short-changed by the current deficient, inflation-ridden, manipulated, economy-dependent, declining, centralized financial markets. Embrace innovation for better profits.

To your success!
Riccardo Ferrari

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