Previously posted on June 13, 2015

Two out of three Americans expect retirement to come with financial stress based on how they are currently saving, according to a new Bank of America and Merrill Edge survey.

So this survey shows that we, as Americans, know we are saving too little for our golden years and fully expect that time in our lives to be stressful due to finances.  The data also indicates that even though this cohort knows they are not saving nearly enough, they have not changed their behavior.  How can this be?

I realize that grouping large numbers of individuals into catchy terms like Gen X and Millennials oversimplifies things, but there seems to be a general trend.  We have abandoned sound financial planning and education about personal finances.  We have made it acceptable (even expected) to save a minimal amount of our earnings and allow a money manager to gamble with it in the stock market.  Even after the crashes of 2000 and 2008, the Keynesian promoters of spending say that we need to max out our credit cards to keep the economy going and get the market back where it needs to be.

This is getting a little bleak.  The good news is that financial knowledge and responsibility were not always at these levels in America.  Before the birth of Social Security, the Great Society, Dodd-Frank, and other government meddling, Americans relied on themselves and on the relationships they built over their lives to ensure retirement years were well spent.  Was that “a different time”?  Sure it was.  The point is that we can rescue our financial eduction from the Keynesian theorists who think “the masses” are too stupid to manage their own money and who encourage everyone to spend more than they can afford.  We just need to remind ourselves that there is a better way.

The Perpetual Wealth Code is based on the 10-20-70 principle, which dedicates ten cents of every dollar you earn to your savings.  Where you put your ten percent is up to you and the PWC does not require a financial product to put it into practice.  That said, there is a wide range of options for where you park your cash.  If you are interested in learning more about this process, and the gold standard for where to put your ten percent, click here.  I am also available to talk any time about how I use the Perpetual Wealth Code and the opportunities that have opened up.  Just reach out via the contact page.