For nearly four years, most of the developed world has suffered from yields that are at or near 0%. Some countries, including Japan, Germany, and Switzerland have even seen rates drop into negative territory.
Many fear that low interest rates will stoke future inflation and could wreak havoc on the strength of the banking system possibly igniting another financial panic.
However, a more immediate concern is the inability for retirees to generate sufficient income from what has traditionally been considered safe fixed income investments.
Ben Bernanke acknowledged the problem in an October speech in Indianapolis when he said:
The lack of yields has created a drought in fixed income opportunities and is forcing American seniors to expose their life savings to higher risk investments in search for higher yields.
Of course those higher yields, such as dividend stocks, junk bonds, private equity and real estate, don’t come without increased risk and lack of liquidity.
Even more alarming is the fact that most American workers have retirement accounts which are severely underfunded. According to CNN Money, 57% of workers have less than $25,000 saved for retirement and only 14% have more than $250,000.
This is a far cry from the nearly $1M which conservative estimates show US seniors will need to enjoy a semi-comfortable retirement. However, in today’s zero and negative interest rate world, even a $1M nest egg invested in certificates of deposit that yield 1%, would only generate $832 per month. Hardly enough to provide a comfortable retirement.
However, one 25-year Wall Street veteran Thomas Moore has discovered an unconventional yet incredibly simple way for American seniors to consistently earn between 1.5% and 3% per month in safe retirement income. Annualized that works out to be 18% to 36% per year.
Click Here to see how a growing number of retirees are consistently earning up to 3% per month in safe retirement income.
This income loophole isn’t new. It has existed since 1968 and allowed the big banks, hedge funds, and the world’s wealthiest investors to generate billions of dollars in safe passive income.
In fact, when applied properly this unique income strategy is so safe that even conservative investing legend Warren Buffett uses it repeatedly to generate large sums of cash that he then uses to buy strong, well run companies.
The crisis that now faces both retirees and soon to be retirees is of epidemic proportions. According to The U.S. Census Bureau one out of every six elderly Americans is already living below the federal poverty line, and it’s forcing many to return to work in low paying jobs where competition is fierce.
The elderly are suffering from anxiety, hopelessness, and even depression because they see no way out of their financial troubles. Too frail to work, too poor to retire is unfortunately the “new normal” for many elderly Americans.
But this unique income strategy is changing that for more and more American seniors. Not only does it allow them to enjoy much higher levels of income, it is providing the peace of mind and security they deserve during their golden years.
There’s no need for retirees to expose their life savings to high risk investments such as stocks, junk bonds, private equity and real estate. Especially during an election year where so much uncertainty surrounds the future of our country.
According to Thomas Moore, this unconventional income strategy can potentially generate thousands of dollars per month in safe retirement income for American seniors.
With his permission, I’ve reposted his presentation here.