Accelerated Wealth Building
Set Your Course
The history of building wealth for your retirement
Before we start going over our Accelerated Wealth Building program it’s important for you to know how we got here. Building your retirement has changed over the last 60 years. Back in the 50’s and 60’s, companies would offer pensions to their employees. The pension would give them retirement money that they couldn’t outlive. It was a great benefit for employees as the company grew the money in their accounts dealing with all the risk.
However, something very bad occurred to a couple companies in the late 60’s that led to strong Federal Regulations that crippled companies making it very difficult and costly to offer pensions. As a result, pensions went away and the 401k was born.
fee's, fee's and more fee's
Early on most 401k’s had fee’s as high as 4-5%. This was stripping most of the growth out of the accounts. There were many people that had invested in their 401k’s during the 80’s and 90’s planning to retire in the early 2000’s to find that between Market losses and hefty fee’s. As a result, they had no where near enough to retire on.
After a makeover in the fee structure for retirement accounts around 2010, most fee’s dropped steadily.
Today the average fee’s in a 401k is still around 2.2%. That sounds really low. Until you look at the graph below
The Start Of The Wild, Wild West of Wall Street
Once the 401K was adopted and supported by Congress with the Revenue Act of 1978, everything changed for the American worker. All risk involved with the 401k was shifted from the employer to the employee. Once Reaganomics started in the early 1980’s, more regulations were removed from the Financial Industry. Brokers were able to get involved in investing retirement accounts into the stock market. This led to a concept that was completely blown out of proportion. The introduction and blatant abuse of Fees.
How compounding fee's impacts your investments
what most people think a 2% advisor fee does
What you actually get after a 2% fee is taken
The financial advisor will end up with over 60% of the $2.9 million dollars. If that isn’t bad enough, your partner then looks to get their piece. Your partner is the Government and their piece is the tax you now owe them. That drops your share by another 20%. This leaves you with a Compound Annual Growth Rate of around 4.5%