Theoretically, the Baby Boomers who saved for decades, religiously put money into their 401K plan, and invested wisely in mutual funds, are ready to sit back and reap the rewards of a wealthy retirement, right? Not so fast. The reality is that they might be looking at nothing more than a break even.
Here’s what’s been happening. For 50 years, the real U.S. Economy, adjusted for inflation, has averaged about 2% per year per person, a number that mysteriously matches up almost exactly with the administrative fees charged by Wall Street brokers on the majority of accounts. If you had the foresight to invest in no-load index funds, and your fees were much less, we applaud you.
Many, many people did not fare so well. For them, the annual financial fees exactly cancel out the annual growth and they’re left with…piffle. Nothing, in real terms. Wall Street still gets theirs though. They’re pulling out that 2% every year no matter what. It almost seems like the stock market was designed to be a rigged game where a vast group of trusting middle class citizens opted to fund the crazy rich lifestyles of a privileged few – we’ll call them the broker class and they’re the ones sitting pretty with a wealthy retirement.
If you’ve been funding the financial industry with your retirement, it’s not to late to change course. Why not break out some of that portfolio and play catch up with income property investing? This particular style of real estate, a strange combination of conservative and profitable, lets you step outside traditional investment theory and control your own destiny for a change. It’s easier than you might think.
Visit Empowered Investor Network for free lessons on how anyone can change their retirement future for the better. Anyone. That means you.
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