Promissory Note Investing – Have Yours "Retirement Investing Ducks" in a Row

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A “Slap in the Face Warning”

How often does one have to have a “slap in the face” warning before the truth sets in? Not properly saving for retirement has painful long-term consequences happens to be the truth.

A Good Retirement Outcome Depends on Good Retirement Investing

In all serious endeavors, good outcomes depend on good planning and good execution. From maintaining physical health to having a decent income, to ensuring you have enough money for retirement, good planning and good execution are the keys. Remember, pro-action is always better than reaction.

The sad truth is that most individuals agree in principle that planning and execution are important; most individuals fail to plan and execute for their retirement. The results are these people end up not retiring with enough money to pay their monthly bills and to live a worry-free, decent life in their “golden years”. Let’s look at the retirement statistics:

Retirement Statistics Data

Average retirement age 62

Average length of retirement 18 years

Average savings of a 50 year old $43,797

Total cost for a couple over 65 to pay for medical treatment over a 20 year span $215,000

Percentage of people ages 30-54 who believe they will not have enough money put away for retirement 80%

Percentage of Americans over 65 who rely completely on Social Security 35%

Percentage of Americans who don’t save anything for retirement 36%

Total Number of Americans who turn 65 per day 6,000

Percentage of population that is 65 years of age or older 13%

Statistical Verification

Source: US Census Bureau, Saperston Companies, Bankrate

Research Date: 1.1.2014

Why Don’t Individuals Plan and Execute for Retirement?

The answer is simple – people say they are too busy; they’re busy working, running their businesses, caring for their families, dealing with health problems, and a myriad of “other duties”. They say they don’t have time to get their retirement “ducks in a row”. And, yes, planning for retirement will require time – your time. How much time varies from individual to individual and from family to family.

A Retirement Plan that Works-Promissory Note Investing

Traditional investing categories – savings accounts, certificates of deposit, stocks, and mutual funds are now yielding between 5% and 4.5% annually. A typical, well-secured promissory note will yield 6.5% to 9.5% annually; the duration is typically one year to ten years. An illustration of the difference between owning a $15,000 investment earning 4% compounded monthly over ten years and a $15,000 promissory note earning 8% compounded monthly over ten years is:

$29,724.98 for the 4% investment vs. $51,589.21 for the 8% note

Investing in a promissory note is not as easy as making a bank deposit or buying a mutual fund. It requires more personal attention and guidance, but the pay-off is well worth the extra time and effort. Earning 8% rather than 4% over a 25 year period can make the difference between a comfortable retirement and a struggling retirement – between freedom from work and having to work to pay the monthly bills.

Promissory Note Investing Options

Numerous investing options exist; doing the right things and doing things right are the essential ingredients for successful note investing. You can invest in one note, in a pool of notes, or in a fractional interest in a note. You can allocate your funds over several investments of note, or concentrate it in one investment. You can seek the most conservative notes or the most speculative ones, or something in-between.

Seek a Competent Advisor

Paying for knowledge is a good investment. I stress the importance of working with a competent, educated promissory note advisor to keep your retirement nest egg safe and secure. Protection of your retirement account should be the top priority, not maximizing income or yield. A stock market saying applies equally to note investing: Bulls can make money, Bears can make money, but Pigs get slaughtered.

Remember: “It is impossible for a man to learn what he thinks he already knows.”



Source by Lawrence Tepper

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