How To Make Your Money Last And Retire Rich

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Millionaire Now! by Larry Nusbaum

This blog is based on the organizational principles found in my new book, "Millionaire Now! - A Financial Toolbox with Seven Steps to Wealth".

How To Make Your Money Last And Retire Rich

Posted on 03/08/2007 20:23:49 | Link | Post Comment

1. Establish a Personal Financial Plan. Planning is everything!

2. Create an A-B Living Trust with medical power of attorney and will. Review annually and update as needed.

3. Fund your Trust by transferring title of your brokerage accounts, bank accounts and real properties to the Trust and change the member names of your LLCs to the name of the Trust.

4. Read: 10 SMART MOVES FOR RETIREMENT & Morningstar Retirement Planning Tips

5. Purchase Long-Term Care by age 55.

6. Roll over your IRA, SEP, 401K, 403B into One self-directed Roth IRA and then Asset Allocate and do not take on too much risk.

7. Create a Perfect Retirement Portfolio for your Roth IRA.

8. Supplement your retirement with a Variable Annuity.

9. Real Estate: Own one or more rental properties. It's the only way to inflation-proof your retirement.

10. Own physical gold & silver.

11. Understand what the future may look like and what you can do to prepare.

12. Protect your money and hire a trusted advisor.

13. Do tax planning in retirement.

14. Do not rely on Social Security.

15. When to take Social Security.

16. Read: Boomers' Financial Futures in Flux

17. Your money will last longer with a 75% allocation to stocks over bonds and with a 4% annual withdrawal rate.

+++++++++++++++++++++++++++++++++++++++

NUMBER 11: Understand what the future may look like and what you can do to prepare:

THE END OF THE GRAND SUPERCYCLE?
Nick Russo (480-816-1619) is one of Wall Street’s most respected stock traders and is considered an authority on trends and the market place and co-authored “A Life Plan of Wealth and Success for the College Graduate”.

Nick calls the period just after World War II to now the “Grand Supercycle” of growth and prosperity in the United States. He has talked about it for many years, until now. Today, Mr. Russo believes that the cycle is over and we are facing a Big Rollover which is now underway. He predicts that this rollover in 2008 will be as devastating as anything seen in the Great Depression.

The wealth gap between the haves and the have nots seems to be getting worse, as the middle class is getting crushed and the rich are getting (fabulously) richer. Why? As inflation and prices for goods and services have continued to climb over the past 25 years, incomes, in constant adjusted for inflation dollars, have actually trended down. No wonder we have no net savings rate as a country and mounting consumer debt. People have been using their credit cards to plug in the shortfalls from their earned income.

So, as the Big Rollover approaches, what does Mr. Russo suggest that we do and how do we prepare (protect wealth) and profit from it?

First he explains that inflation was able to mitigate debt over the past several years. Now, deflation will evaporate net asset values. He also thinks that China will cool in two years, from 9% to 4% growth. (peaking at the time of the Olympics?). He reminds us that the downside is always faster. And, recommends reducing debt now to survive the drop.

What to do now?
1. Sector investing is more important than ever.
2. Look at Master Limited Partnerships and Trusts.
3. Generate cash-flow from covered call writing.
4. Investing in special situations in real estate – Strategic Real Estate.
5. Find alternative ways to finance real estate.
6. Investing in Precious Metals (insurance).
7. Investing in commodities (2001-2010).
8. Buying physical Gold & Silver (wealth preservation).
9. Investing in the aging population (special situations in health care & biotech).
10. Do things that will make you happy.
11. Create a backdoor escape (to get out of the urban living if and when things get bad or for retirement. Nick believes that people are not happy in their urban lives).
12. Stop our false sense of entitlement.

The 12 Building Blocks of Wealth Cycle Investing

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