Retirement is something we all worry about and despite our differences in careers, gender, age, it touches us all. The number one cause of stress is money according to a recent report from BlackRock. But there is a cure. “Focusing on retirement planning helps alleviate stress and improves your overall well-being today,” BlackRock President Robert Kapito says.
Americans and Europeans live longer than ever before, but most people are not saving enough to prepare for their long-term needs.
Research discovered 4 astounding facts about retirement.
1. Social Security is not enough
Retirement advisors suggest you place on average 80% of your retirement fund needs to be invested to earn a decent income. Social Security payments will not be enough. In 2020, the average monthly payout was only $1,500. How far will that get you?
For those of you in the US, 401k still requires you to contribute on a regular basis and it carries high administration fees (click here to read about problems with the 401k) and what would it produce at the end?
If you end up with 400,000 USD, will it be enough to last you for 30 years and cover medical expenses should they arise? The size of the average 401k balance in 2019 was $112,300.
2. Americans are behind on saving
Corporate America is turning away from providing pension plans to their staff. This leaves staff to secure their own retirement.
The Government Accountability Office (GAO) found that the median retirement savings for Americans between age 55 and 64 was $107,000. This will only bring $310 per month.
3. Retirement can last you longer than you think
The average life expectancy has increased to 90 years, which means you have 30 years in retirement. If you are earning an average of $100,000 per year, in retirement you would like to have access to at least 80% of your annual income. This means you need on average $2.4m.
4. Healthcare costs
According to Fidelity, an average couple may need $295,000 to cover health care in retirement. Other sources such as CNBC estimates to $390,000. Others recommend you should account for $2,700 per month at the age of 65.
If you are under 40, the best solution is a regular contribution plan such as 401k. This will discipline you to put aside a fixed amount every month into your savings and retirement pot. One of the best placements would be into the S&P 500 Index (the S&P 500 Index savings plan). Warren Buffet recommends the S&P 500 Index as the best retirement fund.
If you are over 40, regular contribution plans might not provide the sought-after stable return on your savings. In such cases, fixed income products could be your option. Even if you have set up a 401K, diversification into fixed products will balance out your portfolio and lay a path to earning fixed income.
When you are retired, you need fixed income. This will allow you to receive the income in your retirement without using up all your capital or selling off shares (if you own stocks). For example, if you place $500,000 into a fixed product that earns a 10% interest rate, per year you will have $50,000 in interest income paid directly to your bank account.
Fixed products include bonds such as apple, amazon or private placements. Amazon pays between 0.4% and 1.2% of interest per year, private placements such as the 12-month Firewood Plan pay 10%.
What is the 12-month Firewood Plan?
The Plan provides you with regular fixed income. This is paid directly to your bank account every three months. At the end of the 12-month term, you can either cash in or renew at the same rate and continue to enjoy a steady stream of income. There are no fees or charges involved.
The plan is provided by GG Capital, a company based in Europe, which uses the funds to meet customers growing demand. For over 10 years, they have been suppling wood products to ten different countries including Finland, Norway, Sweden, Denmark and the Baltics. They are the largest provider of firewood in Finland, supplying over 50% of the market with birch and adler wood products.
They are the only Eco Labled (SWAN certificate) producers of firewood in Scandinavia. This means their products are certified to hold the absolute highest possible sustainability, environmental and quality requirements in the market. Far more superior than any of their competitors.
The firewood operation is very simple.
1. Customers such as Shell and Coop place their orders for firewood in advance
2. GG Capital uses the funds raised from the 12-month plan to purchase the requested volumes from suppliers with sustainable forestry practices
3. They deliver to customers within 5 days
4. The whole supply chain is fully insured from end to end
Firewood is a necessity product and has been relied on for centuries. Today it provides energy to over 40% of households worldwide and is expected to grow by 2% per year; making it a profitable niche industry.
Some of their selected biggest clients are:
SHELL - https://www.shell.com/
S-Ryhma, who has 40,000 employees - https://s-ryhma.fi/en
ICA Guppen https://www.icagruppen.se/en/
To receive the 12-month Fixed Income Factsheet, please contact firstname.lastname@example.org or click here.