Is my investment advisor withholding the truth from me? Is there something I need to know about my 401k? It’s been doing good the last two years. I don’t think I need to worry, right?
In my former life I was a CPA who also had a large investment advisory practice. I was in the business of helping people plan for their retirement. It was important to me to help people diversify their nest egg and current and future income sources. I always recommended they create more sources of retirement income. Let’s explore a possible diversified income source.
Value of Traditional 401k
The value on the statement = the value (I know, really lame and simple)
How much monthly income will your 401k give you during retirement
That may be worth knowing because after all you’ll be paying for your lifestyle.
The value of your current 401k x 5% / 12 = Estimated monthly income.
Example: the statement value is $81,000.
$81,000 times 5% divided by 12 = $338 per month.
Not bad. That might pay for your monthly groceries. Perhaps a car payment.
Value of Network Marketing Residual Income Stream
Wait a minute? This a pitch! I hate network marketing.
No, it’s not a pitch. It’s a discussion about another way to diversify your retirement income steam.
Stick with me just a little bit more.
Amount of your average weekly network marketing income over the past 8 weeks / 5% (.05) times 52= estimated value of residual income stream. In network marketing the monthly income comes to you in the form of profits and not wages so it comes to you if you are working or not. That’s why its called “residual.”
Example: Average weekly residual income $5,000
$5,000 divided by 5% (.05) times 52 = $5,200,000
Why It May be Important To You
As a former CPA and investment advisor I always recommended to my clients to start a network marketing business to supplement their current income and provide an asset for retirement. That’s smart planning. There is nothing unworthy about diversification.
It may take you only 7 years of part time work (about 7-12 hours a week) doing network marketing to create a $5,000 per week residual income. If you accomplished that your 401k Residual Statement would say you have an asset worth $5,200,000.
If you socked away say $10,000 a year in a traditional 401k after 7 years at a growth rate of 5% it would be worth about $81,000.
What’s worth more? Would the traditional 401k value of $81,000 be worth more than the network marketing’s 401k residual value of $5,200,000? Which one would provide for more retirement monthly income?
Would it be worth it to you to spend 7-12 hours a week building a network marketing business to have a lifetime monthly income stream of $5,000 per week? Only you can decide that.
There is of course no guarantees that you’d actually build that much of a monthly income stream in 7 years working 7 to 12 per week. But it would almost be certain that if you spent even 7 to 12 hours per month in a network marketing business that you’d have a monthly income stream greater than the $338 per month.
Something to think about.
Still feel like I’m pitching you? Or maybe I got your wheels turning. I hope I did that at least.
The reason I quit being a CPA and an investment advisor is the monthly income from my network marketing business, only working part-time, became greater than what I was earning working 40 hours a week as a CPA.
My weekly residual income is about $5,000. It took me about 6 years to create that. There is no way I could have socked $5,200,000 in a 401k to match this.
I took my own advice years ago. It worked. It will work for you too.