Planning for retirement: Why you’ll need recurring income

For years, most people planning for retirement have heard about the wisdom of contributing to a 401(k) or similar plan. But as the financial crisis turned into a full-blown recession, everybody saw their investment accounts shrink.
a bunch of benjamins
Creative Commons License photo credit: nick farnhill

Plans like the 401(k) let people contribute pre-tax dollars into an investment account that is expected to increase in value over time.

But now the financial situation has gotten so bad that Time magazine’s Oct. 19 cover story says it’s time to retire the 401(k). According to the article, the balance of the average 401(k) dropped 31 percent from the end of 2007 through March 2009.

“In a system in which one year’s gains build on the next, the disaster of 2008 will dent retirement savings long after the recession ends,” the article says.

The magazine said the “401(k) was never meant to replace the employer-guaranteed pension fund, supplemented by Social Security, as the cornerstone of our nation’s retirement system.”

“But propelled by a combination of companies looking to cut costs and consumers who wanted control of their retirement destiny, that’s exactly what happened,” the story says.

The magazine suggests several fixes to the 401(k) issue, including a form of retirement insurance that could pay for up to 30 percent of retirement.

Would it be OK if I suggested another alternative for those who are planning for retirement? Recurring income.

Recurring income is doing work right one time, but getting paid for it over and over again. It’s similar to payments Michael Jordan gets when someone buys his brand of shoes or checks Elvis Presley’s heirs get when someone downloads one of his songs from the Internet.

Unfortunately, not many of us can play basketball like Michael or sing like Elvis.

Fortunately, there’s another option. Network marketing has allowed thousands of people to create recurring incomes ranging from a couple of hundred dollars a month to tens of thousands of dollars a month.

It’s not easy. It’s not a “get-rich quick scheme.” But it is possible.

Everyone planning for retirement now realizes that relying on traditional methods is no longer enough. Why not invest your time and effort in a business that provides recurring income?

Steve DeVane

Financial bailout rescue plan – Find your own way out

Even the most optimistic investor is antsy today after the U.S. House of Representatives voted down a $700 billion financial bailout rescue plan for the nation’s financial sector. Some are even worried about the possibility of another Great Depression.

The stock market had its biggest single drop in history, even bigger than the decline after 9-11. Since nearly everyone has money invested with some connection to market, the reason for concern is evident.

Most folks can only watch as their 401-K or other retirement accounts drop like a rock. Those who have to rely on a job to replace the lost money have a tough task ahead of them.

The reason for the difficulty is because jobs generally result in linear income – trading time for money. If you go to your job, you get paid. If you don’t show up, no paycheck.

Even high-paying jobs are based on this model.

A more favorable method of payment is royalty income. You get this by doing something once and getting paid over and over and over.

Most people think that such income is reserved for movie stars, musicians ad authors. It’s not. Network marketers make it every month.

Network marketing is responsible for more than $100 billion in world-wide sales. Instead of paying high-dollar celebrity endorsers, MLM companies pay distributors.

To earn their pay, networkers simply promote and recommend the companies’ products or services, which are usually high quality.

What if you went to your mailbox next month and found a royalty check? Would that make a difference in your life?

It can happen. It happens to network marketing professionals every month. They have developed their own financial bailout rescue plan.

Steve DeVane