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The idea of retirement should be exciting.
You work for years and years, and eventually, you don't have to anymore. You can move to Europe with your spouse, spend your days going on hikes or relaxing by the beach, and finally shed off the stress of that nine-to-five.
Instead, the word "retirement" scares people. Everyone wants to retire, but not everyone is sure they can. The fact of the matter is that 22% of Americans have less than $5,000 in retirement savings - which simply isn't enough to live the retirement of your dreams.
Now, the financial news networks will use statistics like these to scare you. You've seen them - there are thousands of fear-inducing articles all over the Internet. They tell you you'll never retire, and then they'll give you a list of what they consider the best ways to save.
Sure, the suggestions these websites peddle aren't necessarily bad. But they aren't the best ways to save - not even close.
Here's the latest round of false advice - and what you should do instead...
The Most Common Retirement Myths - Busted
Today, I'm going to tell you the quickest, easiest, and most lucrative way to save for retirement. First, let's bust seven of the biggest myths out there...
Retirement Myth No. 1: Purchase an Immediate Annuity When You're Ready to Retire
An immediate annuity is basically a guaranteed income that begins right away. But in order to receive that income, you have to first have enough money to buy it. Often, these include high fees, and that "guarantee" is confusing. Sure, you'll make some money with this - but it's certainly not the smartest way to save.
Retirement Myth No. 2: Buy a Deferred Annuity with a Withdrawal Benefit Rider
This is similar to buying an immediate annuity, except you have to deposit funds today in order to get money 10-plus years into the future.
The more money you add to your account, the bigger your future guaranteed withdrawal amount is. You know the old saying, "You need money to make money"? That applies here.
Retirement Myth No. 3: Generate a Pension
Some employers provide workers with a guaranteed retirement income, often in exchange for years of service. I know plenty of people that have benefited from a pension, like war veterans. They're a good thing, don't get me wrong. But you should never decide your career based on whether or not the company offers a retirement income. That's like selling your soul!
Find the career that you want. You don't need a pension in order to live a stress-free retirement.
Retirement Myth No. 4: Claim Social Security at a Later Age
If you wait to claim Social Security, you can end up taking bigger payments. That much is true. But that means you have to live frugally until then. And as we know, Social Security may not even be around in the future.
So, don't spend your life digging for pennies in couch cushions just so you can receive bigger Social Security checks. That could end up causing you a lot of unnecessary added stress - and it may not even pay out in the long run.
Retirement Myth No. 5: Reverse Mortgage
A reverse mortgage is basically a loan that allows you to borrow from your home's equity. This loan may promise income for life, but it comes with a long list of drawbacks...
Essentially, you're burning your equity in exchange for secured income today. Loan balances increase over time as interest on the loan and fees accumulate. Your loan will become due when a "maturity event," like your passing, occurs. If you wish to pass along your home to heirs, you're also giving them the burden of repaying that loan.
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Retirement Myth No. 6: Use Longevity Insurance
Like number two above, a qualified longevity annuity contract (QLAC) is a deferred annuity. It differs in that it is funded with an investment from a qualified retirement plan or IRA.
With longevity insurance, you can defer your income until you're older, like once you hit your 90s. But there are several issues with this, like not living long enough to use the annuity, a lack of inflation protection, and limits to the amount you can invest.
Retirement Myth No.7: Build a Bond Ladder
This technique reminds me of a squirrel storing acorns for the winter. You buy bonds that mature at different points in the future, specifically timed for when you expect to need the income.
But there's a much faster way to generate that income...
These seven points have merit, sure. The gist is really just the normal social plan of collecting money and saving it for use in later years. That's certainly not a bad thing. But with each of these seven vehicles, you aren't in control. The institutions profiting off of you with fees and interest are.
But you don't have to do any of those things. There's a way to make enough money to support you all the way through retirement that puts you in the driver's seat, not the bank. And that's by trading.
Trading options offers the ability to generate consistent, reliable income - all while sitting in your home. The techniques I use and teach work. They have created a life of financial abundance for not just me, but my readers.
You don't have to take my word for it. You can hear it straight from my readers themselves. Take a look at Mercer Isaac's story, for example...
"I struggled for 25 years working overtime at two jobs. At 72 years old, retirement wasn't a possibility. My wife was sick and hospital bills were mounting when I first came across one of Tom's videos. Now, I've been trading with Tom for three months, and I'm confident once again I'll reach the financial independence I've always wanted."
And his story isn't the only one. Grant Taltson has turned his life around as well...
"Before I started trading, there was darkness at the end of a long tunnel. Now, there's light there. I have Tom Gentile to thank for providing that light and enabling me to see a path to the end!"
Your story could be next. You don't have to spend your life worrying about retirement. Instead, take control of your financial future. Embrace the world of trading for a consistent and reliable income that will hand you the retirement of your dreams.
And keep an eye out for a play I'm going to show you on an infamous company that can jump-start your retirement savings. That's coming soon.
In the meantime, I have something else to share with you…
I’m revealing my most lucrative options trading secret yet.
It's the reason I’ve been able to make such fast, profitable moves on companies like Netflix, Apple, Facebook, even Amazon – the reason I’m able to see many major paydays long before they happen.
We're talking about the potential to see the future of any stock on the market.
And I’m going live to show you exactly how you can do it.
Believe it or not, it can be as easy as a few simple clicks of your mouse…
In no time at all, you could be lining up trade opportunities one by one and watching as your account potentially grows bigger and bigger.
The post Seven Things to Avoid When Saving for Retirement appeared first on Power Profit Trades.
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About the Author
Tom Gentile, options trading specialist for Money Map Press, is widely known as America's No. 1 Pattern Trader thanks to his nearly 30 years of experience spotting lucrative patterns in options trading. Tom has taught over 300,000 traders his option trading secrets in a variety of settings, including seminars and workshops. He's also a bestselling author of eight books and training courses.